Mastercard

Pricing power is strong but not absolute due to regulation and litigation. Cross‑border fees and network assessments historically command premium economics; GAAP operating margin for Q2‑2025 was 58.7% and adjusted 59.9%.

However, interchange caps in the EU (extended on inter‑regional transactions through 2029) and ongoing US legislative pressure (Credit Card Competition Act) can limit headline pricing and alter routing dynamics. Mastercard offsets this with mix shift to services, contract structures, and technology that boosts approval rates and fraud outcomes.

Net result: high sustained margins, but with policy headwinds that warrant a tempered score relative to the moat.