December 5, 2017
Legal action between online merchants and payment providers is not uncommon. Merchants, especially smaller ones that might sell on marketplaces, through multiple channels or internationally, sometimes are not able to keep track of or discern all the fees they are paying and conflict arises.
A lawsuit filed in Ontario Superior Court recently against PayPal Canada that lawyers are trying to turn into a class-action proceeding alleges that the online payment pioneer’s Canadian subsidiary is violating its user agreement by charging hidden currency conversion fees. The suit said PayPal “unilaterally and automatically” converts foreign currency to Canadian dollars when account holders attempt to withdraw it from their accounts, generating unexpected fees.
The dispute is just one illustration of the kind of conflicts that can arise between online sellers and their payment providers. Merchants must educate themselves to fully understand, constantly assess the accuracy of and optimize wherever possible the fees they are paying their providers.