Credit Card Processing, Legal

Eliminating Credit Card Fees with Cash Discounts: Is It Legal?

The short answer: yes, when done correctly. The longer answer is that there’s a lot of confusion about the difference between “cash discounts” and “surcharges,” and that confusion has led to labeling surcharge programs as cash discount programs. Let’s look at the differences between the two and how you can stay on the right side…

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Credit card processing companies are popping up left and right offering “cash discount” programs to eliminate your credit card processing fees. Are they legal and are they permitted in merchant agreements?

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Credit Card Processing, Legal

American Express Anti-Steering Supreme Court Case

The court heard arguments in early 2018 and ruled in late June. Let’s look at the arguments on both sides and the results of the case. Ohio v. American Express The States’ Argument American Express’ Argument History of the Case – Lower Court Rulings How Ohio v. American Express Could Affect Your Business Results of…

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You may have heard that a case involving American Express went to the Supreme Court. The case, Ohio v. American Express, determined whether businesses are allowed to suggest customers use lower cost credit cards when paying for purchases.

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Credit Card Processing, Legal

Wells Fargo Merchant Services Lawsuit

Let’s take a look at what the lawsuit claims and what you can do if you process credit cards through Wells Fargo Merchant Services. Wells Fargo Lawsuit Wells Fargo’s Response First Data’s Role Does this affect you? What to Look For Tiered Pricing Excessive Bundled Rates Billback Pricing Interchange Clearing Fee Excessive Interchange Markup Equipment…

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In the latest accusation against Wells Fargo, the company’s merchant services division is facing a lawsuit that alleges misleading sales tactics, expensive cancellation fees, and overbilling, including mislabeling some of its own fees as interchange.

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Credit Card Processing, Legal, Scams and Fraud

Avoiding Fraud: Takeaways from the Commerce Payment Systems Scandal

In this article, I will lay out the allegations and show you how to avoid potential scam practices when choosing a credit card processor for your business. The Allegations Fees Rates Guaranteed for Life Cost Comparison Calculators Negative Reviews Red Flags Getting Help – CardFellow.com The Allegations The Justice Department’s notice alleges that the two…

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According to the Department of Justice, two executives of a credit card processing company have been charged with fraud. The executives, who worked for Commerce Payment Systems, are accused of perpetuating a scam against thousands of small businesses and obtaining more than $30 million through overcharging and deceptive tactics.

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Credit Card Processing, Legal

Repeal the Durbin Amendment: The Hidden Issue

Yet many small businesses and consumers don’t even know what the Durbin Amendment is, not to mention the impact payment experts and economists claim it has supposedly had. What would Durbin Amendment repeal mean for businesses? News and Updates Two Complicated Sides of the Durbin Debate Coin The Durbin Amendment for the Layman Debit Interchange…

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The introduction of a bill to repeal the Durbin Amendment has added more fuel to the fiery debate between the nation’s largest banks and retailers,

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Credit Card Processing, Legal

Home Depot Lawsuit Against Visa and MasterCard

Wal-Mart filed a similar suit against Visa in May. The Security Problem According to Home Depot Credit Card Companies’ Reactions The Monetary Problem According to Home Depot No Option Are PINs the answer? Prayer for Relief Visa and MasterCard Respond The Security Problem According to Home Depot Home Depot accuses Visa and MasterCard of being…

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It’s a case of a home improvement retail giant versus two network payment processing behemoths. In mid-June 2016, Home Depot filed an antitrust lawsuit in federal district court in Atlanta against Visa and MasterCard, alleging credit card security is inadequate and exposes retailers and customers to hacking.

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Credit Card Processing, Legal

Walmart Sues Visa: Who’s Right?

Update – in November 2017, Walmart and Visa announced that they are settling the lawsuits. Details of the settlement have not been made public, though Visa made a public announcement that they’re pleased with the settlement decision. We’re leaving the rest of this article for historical purposes.  Setting the Stage: PIN vs. Signature Chip Cards…

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A battle is brewing. Citing security issues, giant retailer Walmart has brought a lawsuit against Visa. At the end of June, 2016, Visa filed a countersuit. The news has spread like wildfire, and misconceptions are also spreading fast. Let’s take a look at what the lawsuit is actually about and address some of the incorrect info going around.

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Credit Card Processing, Legal

Tennessee’s Credit Card Processing Fee Disclosure Law

Information provided in this article is for reference only. If you need legal advice regarding processor contracts or Tennessee’s law, consult an attorney. What is an effective rate? What’s good about Tennessee’s new law? What’s bad about the law? Why don’t bank-owned processors have to disclose the effective rate? What happens if a processor doesn’t…

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Effective March 1, 2016, Tennessee became the first state in the nation to pass a law about processing fee disclosures. The law (SB0316) requires that merchant service providers not owned by a bank calculate and list the effective rate for credit card processing on each monthly statement. What does this mean for Tennessee businesses and are businesses in other states affected?

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