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Mastercard and Visa reportedly reconsidering their relationship with Wirecard following accounting scandal

June 25, 2020. Summarized by summa-bot.

Visa Inc. and Mastercard Inc. credit cards are arranged for a photograph in Tiskilwa, Illinois, U.S., on Tuesday, Sept. 18, 2018. Visa and Mastercard agreed to pay as much as $6.2 billion to end a long-running price-fixing case brought by merchants over card fees, the largest-ever class action settlement of an antitrust case. Photographer: Daniel Acker/Bloomberg

Mastercard and Visa are reconsidering whether to allow Wirecard to continue processing payments on their networks, following the fintech company's massive accounting scandal, according to a report from Bloomberg Thursday.

New York (CNN Business)Mastercard and Visa are reconsidering whether to allow Wirecard to continue processing payments on their networks, following the fintech company's massive accounting scandal, according to a report from Bloomberg Thursday.

Mastercard (MA) and Visa (V) have informed some Wirecard clients that the firm's access to their payment networks could be revoked, Bloomberg reported, citing people familiar with the matter.

Neither credit card company commented directly on the report, but both said they are following the situation closely.

The loss of two of the biggest payment networks in the world would be yet another blow to Wirecard, which earns revenue by helping businesses process payments from customers.

Likewise, Mastercard said in a statement that it is tracking the Wirecard news.

However, in a statement Monday, Wirecard said that "for the avoidance of misunderstandings, the company wishes to inform that its IT systems continue to work without limitations. "

Wirecard's CEO Markus Braun resigned last week after an auditor discovered that $2 billion in cash appeared to have gone missing from the company's accounts, delaying publication of the tech firm's 2019 financial results and sparking fraud accusations.

Braun, who helped grow Wirecard into one of Germany's biggest companies, was arrested the following day on suspicion of having inflated Wirecard's balance sheet and sales through fake transactions in order to make it more attractive to investors and customers.

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