Mastercard Case Tees Up Wider Taxation of Credit Card Companies

The South Carolina Court of Appeals will hear arguments Wednesday in a case about how to determine what portion of Mastercard International Inc.'s business is taxable in the state that could give other revenue departments the leash they need to go after credit card companies more aggressively.

Mastercard has never paid corporate income taxes in South Carolina because it says its credit card network isn’t present in the state and that its transaction processing functions occur elsewhere. But in 2024 a state administrative law judge held that the company is on the hook for over $6 million in corporate income ...