Electronic payment processing, also referred to as merchant processing, is not immune to conflict and dispute. Many merchants and customers have reported instances of overbilling in the form of hidden fees, excessive chargebacks, inflated transaction fees, unauthorized add-on services, deceptive tiered pricing, lease overcharging, and early termination fees.
Not only does overbilling destroy the trust between merchants and payment processing providers, but it can also seriously impact the reputation of both businesses. If you believe you are being affected by merchant processing overbilling, contact Sigal Law Group today for help. Our experienced electronic payment processing attorneys will review your case and determine how best to proceed.
Overbilling Laws
There are several laws that govern overbilling as it relates to merchant processing issues. These include:
· The Federal Trade Commission Act, which prohibits unfair or deceptive practices or acts in commerce.
· The Truth in Lending Act (TILA), which protects consumers from unfair credit billing and credit card practices. TILA specifies that creditors must provide consumers with accurate statements of charges and fees and identify ways to dispute billing errors.
· The Electronic Fund Transfer Act, which offers protection for consumers who transfer their funds electronically using debit card transactions, direct bank transfers, or similar methods.
· The Racketeer Influence and Corrupt Organizations Act, which has been used in some cases that involve fraudulent billing practices as part of an illegal business.
· The Sarbanes-Oxley Act, which provides a framework for fraud prevention for publicly traded companies.
· The Dodd-Frank Wall Street Reform and Consumer Protection Act, which established the Consumer Financial Protection Bureau and enhanced financial regulations in an effort to stop predatory lending practices and other kinds of financial fraud, including overbilling in payment processing.
· State-specific consumer protection laws.
Victims of overbilling, whether they're businesses or consumers, can use these statutes to force payment processing providers and merchants into compliance.
Litigating Merchant Processing Overbilling Issues
State and federal laws recognize overbilling as a fraudulent business practice. This means any merchant or payment processing provider suspected of overbilling is breaking the law and must be held responsible.
Overbilling cases are complex and require the experience of a seasoned electronic payments processing attorney. Contact Sigal Law Group today for help.
