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.

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