NEW YORK - MASTERCARD Inc reported on Tuesday quarterly earnings as the world's second-largest credit card network raised fees to banks and trimmed expenses, while consumers used their debit cards more.

MasterCard's third-quarter net income rose to US$452 million (S$633 million), or US$3.45 per share, compared with a loss of US$194 million, or US$1.48 per share, a year earlier.

Revenue rose 2 per cent to US$1.4 billion, boosted by higher fees charged to banks and increased consumer use of credit and debit cards, while expenses declined 13 per cent to US$685 million, as the company trimmed advertising and marketing spending and reduced personnel and administrative costs.

Processed transactions grew 7.6 per cent in the quarter to 5.8 billion.

The company's larger rival, Visa Inc, reported better-than-expected quarterly earnings last week, helped by higher prices and debit card use.

MasterCard shares were up 1.0 per cent to US$225.00 in premarket trading. The stock is up 57 per cent in 2009. -- REUTERS