That appears to be the case for many businesses, including a Florida small business we are currently representing in an overbilling investigation involving TSYS / Global Payments. These issues often involve processing fees, payment processors, hidden charges, unexplained rate increases, interchange fees, and even credit card processing fees that don’t match the contract.
If you accept credit or debit card payments, please keep reading. You might be losing money and not even know it.
What Happened With This Payment Processing Service?
A business owner signed a merchant agreement with TSYS / Global Payments, believing they were being offered clear, simple, and low rates:
- 1.00% base rate
- $0.10 per transaction
- 0.10% funding fee
- 0% non-qualified fees
This was supposed to help the business save money.
However, instead of honoring the agreement, the processor charged significantly higher processing fees for two years, including increased interchange fees, inflated processing cost totals, and other add-ons not specified in the contract. The business did not receive any written notice explaining the fee changes, despite the contract requiring it.
This resulted in the business paying much more than it agreed to, every single month.
Hidden Fees Found in the Business’s Payment Statements
Upon reviewing their statements, we found numerous charges that did not align with the contract. These included:
- 2.3% to 2.9% effective processing rates (NOT the 1% promised)
- Extra fees that should have been 0%, like “Non-Qualified Surcharge”
- Higher transaction fees than agreed ($0.12–$0.15 instead of $0.10)
- Funding fees that were double or triple the agreed amount
- Unexplained interchange fees increases
- No notice of price changes at all
These surprise charges added up to over $13,000 in overbilling.
Our research shows that this overcharging may be happening to many small and mid-sized businesses across the payment processing industry, all handled by payment processors who quietly change pricing or add different rates. Some businesses even report what looks like scams, disguised as legitimate merchant billing.
Why These Merchant Service Billing Practices Are a Big Problem
Small businesses choose a credit card processor based on trust. When a company promises certain rates, it must honor those rates. If it wants to change them, it must give proper notice.
Here, none of that happened.
Instead, the processor charged:
- Hidden fees
- Higher processing fees
- Unauthorized surcharges
- Increased funding fees
- Random terminal fees
- New monthly fees
- Slowly rising different rates over time
- Extra interchange fees
- Billing problems that could lead to friendly fraud or chargeback confusion
This kind of behavior is more than bad customer service; it may be unfair, deceptive, and illegal. For some merchants, these practices even caused chargeback issues or disputes when customers challenged unexpected charges processed through the bank.
Are These Practices Illegal?
Yes. Several laws may apply.
Breach of Contract
TSYS / Global Payments charged fees outside of the agreed terms.
Violations of Florida’s Deceptive and Unfair Trade Practices Act (FDUTPA)
FDUTPA protects businesses and consumers from unfair or sneaky behavior. Charging hidden fees or raising prices without telling the business can be considered:
- Misleading
- Unfair
- Deceptive
FDUTPA also allows the injured business to recover attorney’s fees, meaning the processor may have to pay the legal bills.
Unjust Enrichment
This means the processor kept money it should not have taken. The business can ask for that money back.
Fraud
If the processor intentionally misrepresented terms or promised rates it had no intention of honoring, that may rise to fraud.
Complaints
Many businesses file a complaint with state agencies, their bank, or the Better Business Bureau after discovering unauthorized charges, often finding that other small businesses experienced the same behavior. Some even report these issues as potential scams.
Arbitration, Class Actions, and How Businesses Can Seek Settlement
Most merchant processors put arbitration clauses in their contracts. This means you may not be able to sue them in court; you must go through private arbitration. They also include class action waivers, meaning you cannot join other business owners in one lawsuit.
But here’s the important part:
Some arbitration clauses are so unfair or one-sided that courts do not enforce them.
Even if a class action is blocked, businesses can still file a mass arbitration, where each business files its own claim. This often forces payment processors to respond and pay.
How Much Could Your Business Recover in a Potential Settlement?
The Florida business we represent was overcharged more than $13,000.
But if dozens or hundreds of other businesses had the same experience, the total overbilling could be in the millions.
In a settlement, businesses may be able to recover:
- Refunds
- Lost profits
- Attorney’s fees
- Possible additional damages
All of this could be recovered with no upfront cost to the business.
Signs Your Merchant Services Provider May Be Overcharging You
You may have been affected if you noticed any of the following:
- Your effective rate is higher than what you signed for
- Your statements show confusing processing fees
- Your monthly fees keep increasing
- Your statements include unfamiliar additional charges
- You were charged “Non-Qualified Surcharge”
- Your funding fee is over 0.10%
- Extra interchange fees appear
- Per-transaction fees don’t match your contract
- New terminal fees show up unexpectedly
- You never received notice of a fee change
- You see different rates every month
- Strange chargeback or disputes activity
If you accept credit or debit card payments, these issues may be quietly draining your revenue.
How to Check Your Merchant Service Statements for Hidden Fees
Here are simple steps to check whether you were overbilled:
Step 1: Look at your statements from the last 6–12 months
Find your effective rate. If it's higher than your contract, that’s a problem.
Step 2: Check for extra charges
Look for terms like:
- “Non-Qualified”
- “Surcharge”
- “Batch Fee”
- “Funding Fee”
- “misc adjustment”
- Unexplained interchange fees
- Unexpected credit card processing fees
These often hide unauthorized markups.
Step 3: Grab your contract
Compare your rate schedule to what you were actually charged. Pay close attention to processing fees and different rates.
Step 4: If something looks wrong, talk to a lawyer
We can review your contract and statements for free.
Are You a Business Owner Who Accepts Credit Cards?
If so, your processor may have overcharged you, just like what happened to one of our clients.
We are now investigating whether this issue affects many merchants nationwide.
If you believe you may have been overcharged, please contact us.
There is no cost to have your statements reviewed.
You may be able to recover:
- Overbilling refunds
- Lost profits
- Attorney’s fees
- Possible additional damages
Get a Free Merchant Services Statement Review
If you want answers, please send us your merchant statements (even just a few months' worth). We’ll review them for hidden fees, wrong rates, unauthorized charges, and possible legal violations. After reviewing your documents, our team will provide a complimentary consultation to explain our findings, including whether overbilling occurred, and discuss potential legal options, such as mass arbitration or class action claims, that may be available to you.
Small businesses deserve fair, honest billing, not surprise fees and broken promises. We are here to help you find answers and determine whether your business may be eligible for compensation.
