Mastercard has already covered roughly $498 million of a $997 million tab and is now pushing Brazil’s payment processors to pick up the other half, or accept a contract that lets Mastercard recoup itself from cardholder collections first.
Will Financeira, the fintech arm of the collapsed Banco Master, ran on Mastercard’s network. Brazil’s central bank ordered Will’s liquidation in January 2026, leaving Mastercard on the hook to reimburse merchant acquirers for about 5 billion reais in processed payments. Mastercard has paid roughly half, according to Bloomberg, and is now circulating a draft contract that would let it recoup itself from customer funds before passing more money to acquirers.
Cielo, one of the acquirers that received Mastercard’s draft contract proposal, told Bloomberg its position plainly: “Acquirers could not, cannot, and will not be able to choose the issuers that are part of the payment scheme, nor are they responsible for the guarantees linked to the transactions.”
Mastercard’s defense here turns on timing. Brazil’s central bank adopted rules making payment networks responsible for all transaction settlements, but set a May 2026 deadline for firms to adapt. Mastercard says Will collapsed in January, before that window closed, so the rules shouldn’t bind it retroactively. If that argument holds, every payment network whose issuer fails during a regulatory transition period gets the same exit. The central bank hasn’t answered that question yet.
Banco Master’s controlling shareholder was arrested when the bank was shut down in November 2025. Recovery through cardholder funds may be the only viable channel left.
Diana Kowalski