VISA starting to Surge on paying settlement early Saving $118M in the process
UPDATE 2-Visa to prepay $682 mln to settle $800 mln debt Mon Aug 31, 2009 5:45pm EDT var storyKeywords = "VISA/ (UPDATE 2)"; var RTR_ArticleTitle = "UPDATE 2-Visa to prepay $682 mln to settle $800 mln debt"; var RTR_ArticleBlurb = " * Visa will prepay $682 mln to U.S. merchants * Company was supposed to pay $800 mln through 2012 * Deal arises out of 2003 antitrust class-action suit .
* Visa will prepay $682 mln to U.S. merchants
* Company was supposed to pay $800 mln through 2012
* Deal arises out of 2003 antitrust class-action suit (Recasts, adds details about lawsuit, background on other payments)
NEW YORK, Aug 31 (Reuters) - Visa Inc (V.N), the world's largest payment network, will pay $682 million to U.S. merchants to complete a legal settlement, paying early to get a discount from the $800 million it had owed through 2012.
Visa and lawyers representing the plaintiff merchants in a 2003 antitrust class-action suit over fees reached the agreement, announced on Monday and subject to court approval.
Visa will make the payment either on Sept. 30 or the business day after the court order, whichever is later.
In the 2003 settlement over hefty fees paid to Visa and MasterCard, which dominated the payments market, Visa agreed to pay $2 billion over a period of 10 years, in equal annual installments of $200 million.
Last month, MasterCard Inc (MA.N), the world's second-largest credit card company, also agreed to prepay its obligations at a discount.
In recent years, Visa and MasterCard also agreed to pay almost $4 billion to American Express Co (AXP.N) and $2.75 billion to Discover Financial Services (DFS.N) after the credit card networks accused their bigger rivals of harming their business by preventing banks that issued MasterCard and Visa cards from also offering their cards.
Visa shares were unchanged in after-hours trading, after closing up 0.85 percent at $71.10 on the New York Stock Exchange. (Reporting by Juan Lagorio; Editing by Gary Hill)