IN BRIEF : MasterCard to Sue Card Processor

MasterCard International says it will follow the lead of VISA U.S.A. and sue Comerica Inc. next week for millions of dollars owed merchants after a Lansing credit card processor went out of business last week.

The Visa suit against Detroit-based Comerica was filed Tuesday in U.S. District Court in San Francisco, seeking $2.9 million for about 1,000 merchants across the country.

MasterCard plans to file its suit the middle of next week, probably in Detroit, said Harry Hasselmann, vice president and general counsel of MasterCard International in New York.

At issue is the failure last week of Check Reporting Services Inc., a Lansing firm that acted as a middleman between retailers and Comerica in processing Visa and MasterCard transactions for retailers.

Comerica processed the transactions and sent money to Check Reporting Services, which in turn sent payment checks to the retailers. But retailers say Check Reporting Services stopped forwarding payments to them in December. Check Reporting Services suspended operations Jan. 20.

Law enforcement officials in the Lansing area said a preliminary investigation into Check Reporting Services operations points to poor money management but no evidence of wrongdoing.

Check Reporting Services named only three creditors in its bankruptcy petition last week, but Michigan officials said Wednesday that as many as 1,000 retailers in 37 states may be out a total of $4 million to $5 million.