InComm calls nFinanSe lawsuit 'baseless'

In response to nFinanSe Inc.'s breach of contract and antitrust lawsuit against InComm, the Atlanta-based prepaid card distributor said the general purpose reloadable (GPR) card provider's claims are baseless and meritless. The lawsuit alleges InComm, which distributes nFinanSe's GPR cards, is blocking access by merchants to the Florida-based company's cards to force nFinanSe to join InComm's Vanilla Reload Network.

According to the complaint filed Oct. 31, 2011, in the U.S. District Court – Northern District of Georgia, InComm attempted to coerce nFinanSe into a "price-fixing conspiracy" when it told nFinanSe it would not distribute nFinanSe's GPR cards unless nFinanSe agreed to join the distributor's reload network, on which $3.95 is charged cardholders to reload prepaid cards – a dollar more than what nFinanSe charges.

InComm countered in a Nov. 22, 2011, press release that the Vanilla Reload Network is made available to its partners at a "general industry practice" reload price point and that "nFinanSe is free to participate or not participate on those terms at its discretion." InComm's statement added that "nFinanSe can continue to use its existing reload platform or any of the others available in the industry."

NFinanSe's lawsuit said InComm's actions violate federal antitrust laws and constitute a breach of the companies' distribution agreement. InComm responded by saying that the distributor has never entered an agreement with nFinanSe that obligated InComm to distribute nFinanSe's Visa Inc.-branded GPR cards, and that InComm has "consistently reserved its right of approval."

InComm said it reserves the right to select what products it distributes on its network.

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.