PNC Merchant Services Fees $10M Class Action Settlement

PNC Merchant Services will pay $10 million to resolve claims it charged its customers unfair fees.

The settlement benefits merchants who used PNC payment processing services and who paid annual fees, early termination fees, and/or paper statement fees between Oct. 26, 2011 and Dec. 31, 2021.

PNC Merchant Services is a payment processing company that allows merchants to process online and in person card payments. The company offers e-commerce programs along with point of sale systems.

According to a class action lawsuit against the company, PNC Merchant Services charges fees that don’t align with its account agreements. Specifically, the company allegedly charges unfair annual fees, early termination fees, and paper statement fees that are not detailed in customer account agreements.

Plaintiffs in the case say they were financially injured as a result of these fees and may not have chosen their PNC Merchant Services payment processing plans if they had been aware of the potential fees.

“Rather than explain these truths to merchants on the application, [PNC Merchant Services] worded the application in a false manner to induce more customers to do business,” the class action lawsuit contends. 

“[PNC Merchant Services] crafted the disclosure to lead merchants to believe such fee may not be charged and, if it was  charged, it would be reasonable and would be used to defray new specified costs (and not generate more profit).”

PNC Merchant Services hasn’t admitted any wrongdoing in the case. However, the company has agreed to pay $10 million to resolve the pending class action lawsuit.

Under the terms of the settlement, Class Members can receive a cash payment based on the amount they paid in fees. Exact payment amounts will vary depending on the number of claims filed with the settlement and the number of fees claimed by Class Members.

The settlement also provides non-monetary benefits. For 18 months after the settlement is approved, Class Members who have a plan with PNC Merchant Services that involves annual fees have the option to switch to a different pricing plan. This may reduce processing fees, though the settlement website warns that switching plans won’t guarantee savings.

For five years after settlement approval, PNC Merchant Services has agreed to make changes to their fee disclosures. This includes providing customers with an annual fee advance notice, not charging early termination fees, and implementing acknowledgements before charging paper statement fees.

The deadline for exclusion and objection was March 9, 2022. 

The final approval hearing for the settlement was scheduled for April 7, 2022.

In order to receive a payment, Class Members must submit a valid claim form by April 25, 2022.

Who’s Eligible

The settlement benefits merchants who used PNC payment processing services and who paid annual fees, early termination fees, and/or paper statement fees between Oct. 26, 2011 and Dec. 31, 2021.

Potential Award

Varies.

• Class Members can receive a cash payment based on the amount they paid in fees.
• Exact payment amounts will vary depending on the number of claims filed with the settlement and the number of fees claimed by Class Members.

Proof of Purchase

No proof of purchase applicable.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

04/25/2022

Case Name

Kelwin Inkwel LLC, et al. v. PNC Merchant Services Co. LLP, Case No. 17-cv-6255-FB-CLP, and Choi’s Beer Shop LLC v. PNC Merchant Services Co. LLP, Case No. 19-cv-5768-FB-CLP, both in the U.S. District Court for the Eastern District of New York

Final Hearing

04/07/2022

Settlement Website

PNCMerchantServicesSettlement.com

Claims Administrator

PNC Merchant Services Settlement
c/o Rust Consulting, Inc. – 7471
PO Box 2624
Faribault, MN 55021-9624
1-888-952-9096
info@pncmerchantservicessettlement.com

Class Counsel

E. Adam Webb
Matthew C. Klase
WEBB, KLASE & LEMOND LLC

Defense Counsel

Perry Napolitano
Justin Kontul
REED SMITH LLP