fbpx

QuickBooks “No Extra Fees” Charged for One-Day Transfers Class Action

QuickBooks is a software product of Intuit, Inc. In March 2020, it announced a change to its ACH payment processing. The company’s announcement said that processing would now be done in one day with no extra fees; however, according to the complaint for this class action, the company actually is charging fees.

The class for this action is all those living in the US who used QuickBooks to process ACH payments and were automatically switched from free two- to seven-day transfers to one-day transfers with a 1% transaction fee.

QuickBooks software is useful to self-employed individuals and small and medium-size businesses. It allows them to do their own bookkeeping and accounting, including accepting payments, managing and paying bills, and running payroll operations.

Before March 11, 2020, QuickBooks offered two options for ACH payments: in two to seven business days with no charge or in one business day with a 1% fee.

On March 11, 2020, QuickBooks users received a notice of a change in that system, with the title, “Here come next-day deposits.” It said, in part, “We wanted to tell you starting today, deposits for bank transfer (ACH) payments go to your account next business day.*” It added, “Nothing to do—everything’s been handled already. And there are no extra fees.”

The complaint alleges, “However, despite QuickBooks’s blatant assurance that ‘no extra fees’ would apply to the now automatic one-day transfers, QuickBooks began charging a 1% transaction fee (maximum $10.00 fee) for all Ach transfers that very same day.”

QuickBooks users were not permitted any way to opt out of the one-day transfer program and keep using the free two- to seven-day transfer system.

The complaint reproduces online postings in which customers complain about the change. One says, “This is the worst time to implement a 1% charge for ACH payments. … My business is already struggling…” The complaint comments, “The timing of QuickBooks’s misleading switch … was especially insulting to users given the financial implications of the Covid-19 pandemic and its associated impact on individual contractors and small business owners, who comprise a majority of QuickBooks’s user base.”

In response to user questions about the sudden charge, after they’d been told they’d be charged “no extra fees,” the company posted a kind of non-answer on its support page. The complaint quotes from it: “Starting April 2021, ACH payments will deposit the next business day and you’ll be charged a 1% transaction fee (max $10 on each transaction. That’s why you’re now being charge transaction fees.”

In the less than two years since the change, plaintiff Shankar Ninan & Co., LLP, a law firm, claims it has been charged $4,327.45 in ACH transaction fees.

The counts include breach of contract, fraud, and conversion, among other things.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

QuickBooks “No Extra Fees” Charged for One-Day Transfers Complaint

September 21, 2021

QuickBooks is a software product of Intuit, Inc. In March 2020, it announced a change to its ACH payment processing. The company’s announcement said that processing would now be done in one day with no extra fees; however, according to the complaint for this class action, the company actually is charging fees.

QuickBooks “No Extra Fees” Charged for One-Day Transfers Complaint

Case Event History

QuickBooks “No Extra Fees” Charged for One-Day Transfers Complaint

September 21, 2021

QuickBooks is a software product of Intuit, Inc. In March 2020, it announced a change to its ACH payment processing. The company’s announcement said that processing would now be done in one day with no extra fees; however, according to the complaint for this class action, the company actually is charging fees.

QuickBooks “No Extra Fees” Charged for One-Day Transfers Complaint
Tags: Breach of Contract, Conversion, Fraud