North American Bancard Facing Lawsuit Over Undisclosed Card Reader Fees

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A proposed class action out of California claims payment processing group North American Bancard, LLC defrauded users of its mobile credit card readers by charging undisclosed monthly fees even though its popular product is advertised as “free, with no setup fees, monthly fees, or other hidden fees.” As a result of this alleged conduct, North American Bancard violated California state law and “breached the covenant of good faith and fair dealing inherent in every agreement,” the 14-page lawsuit reads.

According to the complaint, the consumer behind the action obtained a mobile card reader from the defendant in late 2014 and was charged fees from December 2015 through April 2016. Upon purchasing the device, the plaintiff claims the salesperson with whom he dealt represented that he would never be charged fees or otherwise owe anything unless and until the reader was used to process credit card transactions. Despite never using the card reader, the plaintiff’s bank account was allegedly charged fees that, as of the case’s filing, have not been refunded.