About 10,500 people have lost their MasterCard and Visa privileges nationwide because of complaints the company that issued the cards was not reimbursing merchants even though cardholders paid their bills, a published report says.

The cards were issued by MoneyCard Systems Inc., which markets credit cards for people with poor credit ratings, The Washington Post reported in Friday's editions.VISA USA Inc. canceled privileges for 2,500 card holders and MasterCard International Inc. canceled privileges for about 8,000 card holders, the organizations said.

Banking officials in Maryland and Washington reported they had been inundated with complaints from consumers and state banking officials who said companies that accepted payment via the credit cards were not being paid even though card holders had been paying their bills.