Mastercard and Visa are reported to review their relationship with Wirecard after the accounting scandal.

Mastercard and Visa are reported to review their relationship with Wirecard after the accounting scandal.
MasterCard (ME) and Visa (V) Notifying some Wirecard customers that the company’s access to payment networks could be revoked, Bloomberg referred to people who knew the subject.
Both credit card companies commented directly on the report, but both said they were following the situation closely. Loss of two of the world’s largest payment networks one more blow Wirecard to earns income helping businesses process payments from customers.

“We continue to closely monitor developments and evaluate new information as it becomes available,” said the Visa spokesperson. Said. “It will always be our priority and to protect the integrity of the visa payment system and protect the interests of consumers, traders and customers.”

Similarly, Mastercard said in a statement that he was watching Wirecard news. “Our priority is to ensure that people can continue to use their cards. We will continue to work with all parties and be ready to take action,” said Mastercard. Said.

Wirecard did not immediately send a comment request for this article. But, expression Monday“In order to avoid misunderstandings, Wirecard said that the company wants to report that its IT systems continue to operate without limits,” said Wirecard.

Founded in 1999, Wirecard was once considered one of the most promising technology companies in Europe. It processes payments and sells data analysis services for consumers and businesses. The company has around 6,000 employees in 26 countries of the world.

However, in recent days, Wirecard has been bothered by a scandal over accounting irregularities that compare to: the EnRoAmerican energy giant that went bankrupt in 2001.
Wirecard’s CEO, Markus Braun, is an auditor’s $ 2 billion of cash disappeared To delay the publication of 2019 financial results of the technology firm from the company’s accounts and to lead to fraud charges. Then on Monday, Wirecard accepted After “further investigation”, the $ 2 billion loss was probably none at all.
Braun helps Wirecard become one of the largest companies in Germany. arrested The next day, with the suspicion that Wirecard inflated his balance sheet and sales with fake transactions to make it more attractive to investors and customers.

The company is currently in a crisis that will worsen if a large payment network revokes its access.

Since last week, Wirecard’s share value has dropped more than 96%. Wirecard filing for bankruptcy Thursday due to excessive debt.

Charles Riley from CNN contributed to this report.

See also  Buy your residences at Normanton Park

You May Also Like

About the Author: Abbott Hopkins

Analyst. Amateur problem solver. Wannabe internet expert. Coffee geek. Tv guru. Award-winning communicator. Food nerd.

Leave a Reply

Your email address will not be published.