MasterCard accused of online fraud
Source: ZD Net UK News
Date: May 14, 2003
Just a few weeks after settling a $1bn law suit for overcharging its merchants, Mastercard has been accused of committing
fraud when processing online transactions.
Internet payment firm Paycom Billing Services has filed a lawsuit against MasterCard, alleging the credit card issuer committed fraud when processing merchants' online transactions.
Paycom, which filed its suit in US District Court in Los Angeles on Monday, said MasterCard used its "monopolistic... power to illegally impose fines and penalties in the millions of dollars" when processing merchants' online sales. Paycom is seeking more than $23m (£14.3m) in damages.
Paycom's lawsuit comes on the heels of a $1bn settlement MasterCard reached earlier this month with Wal-Mart and Sears, Roebuck over allegations the credit card giant added excessive fees to debit card transactions. "We understand we're not a brick-and-mortar merchant, and we understand online payments are a different type of transaction than one in person," said Chris Mallick, Paycom's chief executive. "But what we don't understand is the charge backs to Paycom." Full story
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