As consumers reduce credit card debt, investors prefer MasterCard

New credit card legislation has put tough restrictions on issuers, forcing them to find innovative ways to generate revenue. Even MasteCard and Visa, two of the most successful companies in the U.S., are finding difficulty as Americans get a better grasp on their credit card debt. New reports say that investors, however, still prefer MasterCard over the other industry giant.

The Credit Card Accountability, Responsibility and Disclosure Act’s conditions on swipe fees may have a bigger impact on Visa, which counts on debit cards for 58 percent of revenue collected from transactions. In contrast, debit cards make up just 38 percent of MasterCard’s payment transaction income, according to The Street, a financial market news website.

“While it is too early to fully and accurately gauge the impact of the legislation, Visa has demonstrated an ability to manage our business through periods of change,” Visa chief executive Joseph Saunders told the site.

Regardless, credit card issuers are still counting on rewards programs and low introductory rates to entice consumers. Those who apply should read all terms and conditions and ensure that they have the financial means to repay credit card debt in a timely manner.