According to the New York Times, Visa mirrored a move made by MasterCard last month and announced it will prepay the rest of a major legal settlement with U.S. merchants in order to get a discount.  The move will save the credit/debit card processor $118 million.



The Times reports that Visa  will prepay $682 million by Sept. 30 to wipe out the $800 million it still owes on a $2 billion settlement that subsidiary Visa USA reached in June 2003.



The settlement is for one of many class action lawsuits filed against both Visa and MasterCard this, particular one accused them of conspiring to fix prices and restrict trade.



Visa originally agreed to make eight annual installments of $200 million, through 2012.

Last month, Mastercard reached a deal for a similar discount, agreeing to prepay $335 million of the $400 million remaining in its obligation. Mastercard was to have paid $100 million annually through 2012.

The U.S. District Court for the Eastern District of New York, which handled the original settlement, must approve the modification.



Visa will make the payment by Sept. 30, or on the business day after the date the court approves the deal. Visa shares closed the regular trading session up 60 cents, at $71.10.