NEW YORK (AP) — 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 post a loss of $1.8 billion, or $2.74 per share, for its fiscal third quarter. Excluding the provision, Visa's net income in the latest quarter was $1.1 billion, or $1.56 per share, beating analysts' expectations of $1.45 per share according to data provider FactSet.
Visa stock was up $2.30, or almost 2 percent, to $124.50 in after-market trading.