USAA is switching to Visa (V) over MasterCard (MA) in 2016.
USAA said that it was switching to Visa from MasterCard because the former offered better benefits for its customers. One of the noted benefits from the company includes removing transaction fees from foreign purchases. It will handle changing most customers cards during 2016, reports CNBC.
MasterCard said it attempted to keep USAA’s business, which provides financial services to members of the military and their families, but that it chose not to because the economics didn’t match up with it. The bank was the card company’s biggest debit-card issuer in 2014 with more than $26 billion in purchases, CNBC notes.
“This news doesn’t affect our outlook for revenue or profits,” A MasterCard spokesman told Bloomberg about USAA switching to Visa. “We had this development factored in when we issued our new three-year financial objectives at our recent investor day.”
MasterCard has handled transactions for USAA for about 30 years.
V shares were up slightly and MA shares were down slightly as of Monday afternoon.
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