PayPal Faces a U.S. Consumer Case Over ‘Industry-High’ Transaction Fees

Payments giant PayPal PYPL.O was hit with a consumer antitrust lawsuit on Thursday in San Jose, California, federal court for allegedly fashioning agreements with e-commerce merchants that artificially maintain high transaction fees.

The prospective class-action lawsuit from two consumers in California and Georgia alleged PayPal’s contracts bar merchants from using price incentives to steer consumers to potentially more cost-effective payment options.

The lawsuit said PayPal, which owns Venmo, imposes the highest transaction fees among payment processors.

Read the source article at XM