Attorney Advertising. National consumer class action firm Keller Rohrback L.L.P. is investigating claims that Wells Fargo’s merchant services arm charged improper fees for its credit card-processing services.
This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170406006328/en/
Merchant services firms, including Wells Fargo Merchant Services, L.L.C., provide credit card readers to businesses and charge fees for processing credit card transactions. As reported, a “Wells Fargo internal probe found some employees had falsely reported customer sales numbers” and pressured businesses into expensive contracts to meet sales goals.
According to online reviews, Wells Fargo and First Data Corporation (Wells Fargo’s card-processing partner) are known for using a billing technique called enhanced billback. Under the practice, a processor will charge a flat-rate fee for all transactions in a month, but then the next month will add to the customer’s bill charges for higher fees for some of the prior month’s “non-qualifying” transactions. Enhanced billback is also known as enhanced reduced recovery, blended rate, or mixed rate.
At Wells Fargo, it appears the practice is referred to as charging a “non-qualified” fee: “a fee generated when a transaction does not qualify at the expected level because it does not meet” credit card company requirements. According to the website Cardfellow.com, “Wells Fargo Merchant Services is responsible for some of the highest rates and fees we have ever seen in the ten years we’ve been helping businesses secure the most competitive credit card processing company.”
Recent reports suggest that this practice could be widespread at Wells Fargo, and may be the result of a flawed compensation model that rewarded employees who could demonstrate high billback rates.
If you or your small business has a Wells Fargo Merchant Services, L.L.C. account and would like to know about your potential claims, please contact Keller Rohrback.
About Keller Rohrback
Keller Rohrback L.L.P. is a leader in representing consumers in class action lawsuits in diverse areas such as health and retirement plans, vehicles, children’s products, mortgage modifications, financial fraud and mismanagement, and data breaches. Keller Rohrback L.L.P. has recovered more than $18 billion for its clients.
The firm’s record of success includes settlements against JP Morgan Chase, Mattel, Crayola, and Anthem Health Insurance. Recently, managing partner Lynn Sarko was appointed to the Plaintiffs’ Steering Committee in the landmark Volkswagen “Clean Diesel” litigation.
With offices in Seattle, Phoenix, New York, Ronan, Oakland, and Santa Barbara, Keller Rohrback L.L.P. serves as lead and co-lead counsel in class actions throughout the country. Our Complex Litigation Group is proud to offer its expertise to clients nationwide, and our trial lawyers have obtained judgments and settlements on behalf of clients in excess of eighteen billion dollars. More about the law firm and its successes can be found at www.krcomplexlit.com. or connect with us on Facebook, Twitter or LinkedIn.
Attorney Advertising. Prior results do not guarantee a similar outcome. Not licensed to practice law in all States. Please refer to our website for details. The choice of a lawyer is an important decision and should not be based solely upon advertisement.