Tuesday, November 15, 2011
nFinanSe sues InComm
As reported in Bloomberg Businessweek, general purpose reloadable (GPR) prepaid card provider nFinanSe Inc. sued prepaid card distributor InComm for allegedly blocking retailers from having access to nFinance's GPR cards. The Nov. 14, 2011, report stated that Tampa, Fla.-based nFinanSe believes Atlanta-based InComm is blocking access to force a price fixing agreement on nFinanSe.
According to Bloomberg, InComm allegedly told nFinanSe it would not distribute nFinanSe's GPR cards unless nFinanSe agreed to join the distributor's Vanilla Reload Network, on which $3.95 is charged cardholders to reload prepaid cards. According to nFinanSe's website, the company charges a $2.95 reload fee.
The Bloomberg report said nFinanSe claims InComm's actions breach the distribution agreement between the two companies, constitute illegal restraint of trade and violate U.S. antitrust laws. The lawsuit was reportedly filed on Oct. 31, 2011, in the U.S. District Court – Northern District of Georgia.
An InComm spokeswoman said the distributor does not comment on pending litigation.
Whether you want to upgrade your POS offerings, find a payment gateway partner, bone up on fintech regs or PCI requirements, find an upcoming trade show, read about faster payments, or discover the latest innovations in merchant acquiring, The Green Sheet is the resource for you. Since 1983, we've helped empower and connect payments professionals, starting with the merchant level salespeople who bring tailored payment acceptance and digital commerce tools, along with a host of other business services to merchants across the globe. The Green Sheet Inc. is also a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals.
Notice to readers: These are archived articles. Contact information, links and other details may be out of date. We regret any inconvenience.
