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7/27, 8:55 PM (Source: TeleTrader)
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Visa, Mastercard fine Wirecard for suspicious transactions - report

Defunct German payment processor Wirecard AG got imposed by fines from card networks Visa Inc. and Mastercard Inc. due to having a big number of stolen card purchases and reversed transactions.

Sources familiar with the situation told the Wall Street Journal on Monday that both Visa and Mastercard urged Wirecard to expel users whose business was connected with uncertain and possibly ilegal sectors such as gambling or pornography both of which were very profitable for Wirecard.

A Mastercard spokesman stated the company is thoroughly investigating and working with its clients in order "to remediate any issues we identify. This may include corrective action, fines or the suspension or termination of a license under certain circumstances."

Breaking the News / TF