Legal Question in Consumer Law in Connecticut


I contracted with a merchant services company to process credit card transactions for my company.

The merchant services company is upgrading my company’s credits card transactions from tier 1 to tier 2 for which I pay a higher rate. The difference between tier 1 and 2 is $0.40 per $70 transaction and they are doing this on the majority of all transactions.

According to my contract, the fees are based upon a three tier system. Tier 1: non-rewards cards are ‘qualified’, for those I pay 1.18%. Tier 2: rewards cards are ‘mid-qualified’ and for those I pay 1.74%, and tier 3 cards are corporate cards are ‘non-qualified’ at 4.99%.

I contacted my sales rep as well as the director of operations at the company asked them to explain why I’m being charged the tier 2 rate of 1.74%, instead of the tier 1 rate of 1.8% on my company’s transactions. I was told most of my customers have been using rewards cards. This is simply not true. I’ve collected signed affidavits from my customers stating they have called their bank to verify the type of card used and they are not rewards cards.

How do I get money I'm owed, and out of the contract with my credit intact and without fees?

Asked on 9/26/07, 2:09 pm

1 Answer from Attorneys

Peter Van Dyke Eagan, Donohue, Van Dyke, & Falsey, LLP

Re: Contracts

You can base your recovery on a variety of legal theories including breach of contract, unjust enrichment, and violations of the Connecticut Unfair Trade Practices Act. My firm has represented a number of plaintiffs in consumer class actions and I would be interested in learning more about your situation.

Please feel free to contact me for a free consultation.

Peter Van Dyke

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Answered on 9/26/07, 2:27 pm

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