Law firm says before and during COVID-19 pandemic, businesses may be paying inflated interchange rates on many debit card transactions
SEATTLE–(BUSINESS WIRE)–#bizowner–Attorneys and investigators at Hagens Berman, a nationally acclaimed plaintiff-side law firm, are investigating whether many small-to-medium-sized businesses across America are paying inflated interchange fees to debit card issuers on scores of daily transactions.
Whenever a card is used to make a purchase, the merchant accepting that card must pay an “interchange fee” to the card issuer on each transaction. These fees are a massive burden for many businesses, in particular during the current COVID-19 pandemic, attorneys say. Merchants pay billions each year on interchange fees.
At a time when many businesses are struggling to stay afloat, interchange rates imposed on merchants nationwide are coming under closer scrutiny. Recently, the Wall Street Journal ran an article with the headline, “Growing and largely hidden interchange economy creates ‘a giant reverse Robin Hood.’”
According to attorneys at Hagens Berman, merchants may be paying higher interchange fee rates than they should be on many transactions, something many businesses are not even aware of because of the complicated system for processing card transactions and the lack of transparency in the rates paid on each transaction.
“Many small-to-medium businesses, such as restaurant chains, coffee shops and other retailers, are struggling to keep doors open for employees and customers,” says Steve Berman, co-founder and managing partner of Hagens Berman. “Their debit card transaction records may show that they are paying higher rates on these transactions than they should be. We are examining these records.”
Hagens Berman Sobol Shapiro LLP is one of the largest and most renowned plaintiff-side class-action law firms in the country, with offices nationwide. The firm’s tenacious advocacy for plaintiffs has earned it numerous national accolades, including “Most Feared Plaintiff’s Firm,” and consistent rankings among a handful of elite plaintiffs’ law firms. More about our law firm and its successes can be found at www.hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.