North American Bancard Sued Over Excessive Fees

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The owner of Lucky 7 Chinese Food in Michigan has filed a class action lawsuit in Georgia against North American Bancard, LLC and Global Payments Direct, Inc. claiming the companies unlawfully charge payment processing fees “that are above and beyond those set forth in the merchant contracts.” The suit alleges that the system for processing credit card transactions makes it difficult for small- and medium-sized merchants to know whether they’re being charged fees as allowed by agreed-upon contracts. For several years, the lawsuit claims, the defendants engaged in a scheme of charging improper fees in violation of merchant service agreements, as well as misrepresenting or leaving out important facts regarding their billing practices.

The suit says North American Bancard does not charge the payments itself (which is handled by Global Payments Direct), but is responsible for ensuring payment services are working properly and providing customer support to businesses.