A group of merchants have filed a class action lawsuit in a federal court in Brooklyn alleging that Wells Fargo Merchant Services misled them about payment processing fees and illegally overbilled them. Some of the tactics, which plaintiffs’ lawyers said dated back six years, include unanticipated or unauthorized fees that were “buried” in 63 pages of fine print describing terms and conditions of their agreements.
“We deny the claims and plan to defend against the misrepresentations outlined in the lawsuit,” Wells Fargo spokeswoman Sara Hassell said. Pricing terms are fair, and the accusations “do not reflect how we operate our Merchant Services business.”
Wells Fargo Merchant Services is a joint venture between San Francisco-based financial institution Wells Fargo and processing giant First Data. The case is Patti’s Pitas et al v Wells Fargo Merchant Services, U.S. District Court, Eastern District of New York, No 17-cv-4583.