Saturday, 4 February 2012

MasterCard takes $495M charge to cover fee suit

This Jan. 30, 2012 photo, shows four posed MasterCard credit cards, in Surfside, Fla. Payments processor MasterCard Inc. said Thursday, Feb. 2, 2012, it recorded a $495 million charge in its fourth-quarter to cover potential losses related to an ongoing lawsuit brought by merchants over the fees they pay on credit card transactions. (AP Photo/Wilfredo Lee)

This Jan. 30, 2012 photo, shows four posed MasterCard credit cards, in Surfside, Fla. Payments processor MasterCard Inc. said Thursday, Feb. 2, 2012, it recorded a $495 million charge in its fourth-quarter to cover potential losses related to an ongoing lawsuit brought by merchants over the fees they pay on credit card transactions. (AP Photo/Wilfredo Lee)

NEW YORK (AP) ? Payments processor MasterCard says it took a $495 million charge in its fourth quarter to cover potential losses from an ongoing lawsuit brought by merchants over the fees they pay on credit card transactions.

The U.S.-based company says the charge represents the after-tax portion of a potential settlement in the case. Wall Street had speculated the bill would run about $1.2 billion to $1.8 billion if MasterCard Inc. and rival Visa Inc. settle the suit.

The charge reduced MasterCard's fourth-quarter profit. The company earned $19 million, or 15 cents per share, on revenue of $1.73 billion. Removing the charge, it says profit came to $4.03 per share,

Analysts were expecting profit of $3.92 per share, on revenue of $1.73 billion.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2012-02-02-Earns-MasterCard/id-1d3432d553fb41d493cc981a3626f345

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