Efunds Files Lawsuit Against MasterCard

eFunds is heading after MasterCard and loaded for bear.  Or something.

eFunds has filed a lawsuit against the credit card giant over the termination of a debit processing alliance agreement signed by the two companies in 2003.  eFunds filed the complaint in late January, alleging that its termination of the marketing sales and services alliance agreement was "improper.”

According to the 2003 agreement, MasterCard agreed to market and distribute eFunds's transaction processing platform and services as part of its debit payments processing program.  When MasterCard started not holding up its end, that’s when eFunds decided to take it to the courts.

MasterCard said, in its filing to the SEC, “After careful analysis of the needs of its customers and its business, on December 13 2006, MasterCard notified eFunds that, pursuant to one of the provisions in the agreement, it was terminating the agreement."  eFunds countered with allegations of breach of contract, breach of the covenant of good faith and fair dealing, and fraudulent inducement.

Efunds is seeking a declaratory judgment that the agreement remains in full force or that it receives monetary damages from MasterCard.

As of press time, MasterCard, however, hasn’t been served with a copy of the complaint.