Mid-cap stock Global Payments (NYSE: GPN) has plummeted 9% today after the company was subject to a security breach that has put roughly 50,000 credit card holders at risk.
Global Payments does third-party credit and debit card processing for some of the biggest banks and credit card companies in the world. And Visa (NYSE: V) and Mastercard (NYSE: MA) customers are feeling the brunt of the company’s security breach.
The Wall Street Journal and other news sources reported the fraudulent charges this morning. While the security breach has put cardholders, including Visa and Mastercard customers, at risk, apparently it’s not yet clear how many cardholders have actually been impacted.
What is clear is that Global Payments shareholders – and to a lesser degree, Visa and Mastercard investors – are being impacted by today’s security breach.
After reaching a 52-week high earlier in the week, Global Payments has fallen 9% to $47.50 a share. Prior to today’s losses, the mid-cap stock had risen 10.5% in 2012. Now it’s back to trading at just a few cents above where it finished 2011.
By comparison, Visa and Mastercard shares are receiving little more than a slap on the wrist – which makes sense since it appears that neither company was responsible for the breach.
Visa shares have fallen 0.5%, while Mastercard is down just 0.66% in afternoon trading.