MasterCard posts Q3 profit as costs fall

NEW YORK (Reuters) - MasterCard Inc reported on Tuesday quarterly earnings as the world's second-largest credit card network raised fees to banks and trimmed expenses, while consumers used their debit cards more.

MasterCard's third-quarter net income rose to $452 million, or $3.45 per share, compared with a loss of $194 million, or $1.48 per share, a year earlier.

Revenue rose 2 percent to $1.4 billion, boosted by higher fees charged to banks and increased consumer use of credit and debit cards, while expenses declined 13 percent to $685 million, as the company trimmed advertising and marketing spending and reduced personnel and administrative costs.

Processed transactions grew 7.6 percent in the quarter to 5.8 billion.

The company's larger rival, Visa Inc, reported better-than-expected quarterly earnings last week, helped by higher prices and debit card use.

MasterCard shares were up 1.0 percent to $225.00 in premarket trading. The stock is up 57 percent in 2009.

(Reporting by Juan Lagorio, editing by Gerald E. McCormick)