First Data and Banc One named in $60 million racketeering lawsuit
26 July 2002 | 3431 views | 0
Online merchant One Solution Corporation has filed a $60 million lawsuit against six US card companies and issuers alleging deceptive and predatory practices over credit card processing and merchant services.
The six companies at the centre of the lawsuit are First Data Merchant Services Corporation, Banc One POS Services Corporation and Banc One Payment Services, JP Morgan Chase Bank, Yahoo, and American Express Travel Related Services Company.
The complaint specifically charged First Data Merchant Services Corporation, Banc One POS Services Corporation and Banc One Payment Services, with conducting a "pattern of racketeering activity" by converting merchants funds in violation of the Federal RICO statutes as well as using predatory and deceptive business practices in violation of New York State's General Business Law Section 349. These acts were committed against merchants using their services to process credit cards.