Atlanta-based law firm Webb, Klase & Lemond, LLC has filed two class action lawsuits against payment processing giants EVO Payments International and EVO Merchant Services (collectively, “EVO”) alleging they maintain a policy of overbilling merchants.
EVO is the world’s largest privately owned payment processor, with over 500,000 merchant customers. The suits allege that EVO represents to merchants that it will only charge the payment processing fees and rates prominently disclosed in the Merchant Application but that, after merchants sign up and the parties begin to do business, EVO imposes new fees and increases the agreed-upon rates. The suits allege that these overcharges are effectively hidden in monthly statements.
According to the complaint, EVO has allegedly advertised low payment processing fees despite knowing that the actual fees would be much higher, concealing important portions of the contract from merchants, and imposing fees that were much higher than those disclosed. Several specific fees, such as “PCI” fees and “IRS Reporting” fees, are alleged to be imposed by EVO in an automated fashion, without regard to the agreed-upon rate structure.
The plaintiffs seek the return of all amounts they paid EVO that exceed the rate schedules set forth in their merchant applications.
The cases, styled New Beginnings v. EVO Payments International, LLC, et al. and Central Florida Liquidation and Sales v. EVO Payments International, LLC, et al., are pending in the United States District Court for the Eastern District of New York and have been assigned case numbers 17-cv-3650 and 17-cv-4507, respectively.
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