Litigation costs cut into Visa profits for quarter
Visa posted a loss of $1.8 billion for the April-to-June period on an increase in its litigation costs.
Payments processors Visa and MasterCard, along with a number of major banks, recently settled a longstanding legal battle against stores over card fees. Visa, MasterCard and the banks agreed to pay the retailers $6 billion as part of the settlement. Visa increased its litigation provision by $4.1 billion, which led the company to a loss of $1.8 billion for its third quarter. Excluding the provision, Visa’s net income in the latest quarter was $1.1 billion, beating analysts’ expectations.
