MasterCard spends $2.33 million lobbying government about card issues in financial overhaul

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MasterCard spent $2.33M lobbying government in 2Q

NEW YORK — MasterCard Inc. spent $2.33 million during the second quarter to lobby the federal government on issues addressed in the financial regulatory overhaul that President Barack Obama signed in late July.

That compares with $840,000 that the payment processing company paid to lobby the government in the second quarter of 2009, and the $820,000 spent during the first quarter of 2010, before the financial overhaul took center stage, according to a recent disclosure report.

Sweeping new legislation this year has changed how credit card companies are able to hike interest rates, charge over-the-limit fees and apply payments.

Purchase, N.Y.-based MasterCard focused its lobbying efforts during the quarter on legislation involving payment cards, the regulation of consumer financial products, overdraft fees and Internet gambling regulation. Interchange fees, the fees that merchants pay to have credit and debit card transactions processed, were another key point on the agenda, as outlined in the report filed July 20.

Merchants have maintained that the fees are too high. Banks and credit card processors say the fees take into account the cost of setting up and maintaining a secure and sophisticated debit payment system.

In the April-to-June period, MasterCard also lobbied Congress and the Federal Reserve about issues related to using payment cards to buy prescription medications online, and about issues related to access to global markets, the Anti-Counterfeiting Trade Agreement and intellectual property enforcement.