NY Lotto: MasterCard Users Paying Illegal Fees

WHITE PLAINS, N.Y. (AP) -- The New York lottery said players who buy subscriptions with their MasterCards were illegally being charged extra fees and higher interest.

Spokeswoman Jennifer Givner said that since June 1, MasterCard users have been billed as if they were taking cash advances. She said that typically means $10 fees and immediate interest at rates up to 24.9 percent.

MasterCard spokesman Chris Monteiro said the banks that issue MasterCards set the fees and rates. He said the company receives only a fee for processing.

Givner said Friday it was MasterCard that moved lottery purchases into a category with bets on dog racing and horse racing, and that lottery purchases were previously treated like fees for government services such as renewing a driver's license.

(Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)