Small Business Credit Card Deception


According to a 2017 lawsuit, for several years, Wells Fargo’s merchant services division overcharged small businesses for processing credit card transactions. Business owners who tried to leave Wells Fargo were charged “massive early termination fees,” according to the suit.

The “overbilling scheme” targeted less sophisticated businesses by using “deceptive language” in a 63-page contract designed to confuse them, according to the lawsuit.

According to one former employee, management instructed employees to “go out and club the baby seals” meaning less sophisticated small businesses victimized by the bank’s predatory practices.