NEW YORK—Global travel has screeched to a halt during the pandemic, and it’s hurting credit card companies’ bottom line.
American Express, Mastercard and Visa all reported double-digit drops in profit for the recent quarter, compared to a year ago, reported CNBC.
The companies pointed to a plunge in international travel as borders remain closed during the pandemic.
The companies earn a fee off of every transaction that runs on their network, while American Express also makes a significant portion of revenue from annual fees, CNBC noted.
“A lack of cross-border payments is especially painful as those card swipes have higher margins, and end up being more lucrative,” CNBC said.