May. 22 at 8:44 PM
Mastercard is seeking to share losses after the bankruptcy of Banco Master’s fintech arm in Brazil, according to Bloomberg. The company is asking major Brazilian payment processors to help absorb costs tied to roughly 5 billion reais (~
$1B) in card transactions that occurred before the collapse.
Mastercard has already reimbursed about 50% of the affected amount to acquirers and is now proposing a structure where any recovered funds from cardholders would first reimburse Mastercard before additional payments are passed on to processors. The proposal has been circulated to firms including Cielo, StoneCo, PagSeguro, and Redecard.
The dispute comes amid new Brazilian central bank rules making payment networks fully responsible for transaction guarantees, even using their own funds if needed. Mastercard argues the rules should not apply retroactively to the Will Financeira collapse, which occurred before full compliance deadlines.
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