Frequently Asked Questions

  1. Why did you receive a Notice?

    If you received notice of this Settlement by electronic mail or postcard, Plaintiffs’ counsel has determined from CPAY’s records that you are a Current or Former Customer of CPAY and met the class criteria during the relevant period from January 1, 2010, through October 31, 2020.

    The Court authorized the Notice because you have a right to know about your rights under the class action. After any objections and appeals are resolved, a Settlement Administrator appointed by the Court will make the cash payments that the Settlement allows.

    This website FAQ explains the lawsuit, the Settlement, your legal rights, what benefits were available, who is eligible for them, and how you may have received them.

    To view a copy of the Notice, click here.

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  2. What was this lawsuit about?

    The case is known as Custom Hair Designs by Sandy, LLC, et al. v. Central Payment Co., LLC, Case No. 8:17-cv-00310-JFB-CPZ, has been approved in the United States District Court for the District of Nebraska. The two merchants who sued are called the “Plaintiffs,” and the company they sued, CPAY, is the “Defendant.”

    Plaintiffs allege, among other things, that CPAY misrepresented fees it charged for its card processing services and improperly added or inflated fees. The lawsuit seeks to recover the amount CPAY customers were allegedly overcharged, as well as other monetary and nonmonetary relief.

    CPAY denies these allegations and disputes that it acted improperly or that it has any legal liability for the asserted claims. CPAY also disputes that this action may be appropriately treated as a class action.

    The Court has not yet decided whether Plaintiffs’ claims have merit.

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  3. Why was this a class action?

    In a class action, one or more people or entities called “class representatives” sue on behalf of themselves and other people and entities with similar claims. All of these people and entities together are the “class” or “class members.” One court resolves the issues for all class members, except for those who exclude themselves from the class. A class action allows the claims of all class members to be more efficiently resolved than individual lawsuits and provides a remedy for class members whose individual damages are not large enough to justify a lawsuit.

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  4. Why was there a settlement?

    The Court has not decided in favor of Plaintiffs or CPAY. Instead, both sides agreed to a settlement. Settlements avoid the costs and uncertainty of a trial and related appeals, while providing benefits to the Class. The Class Representatives and the attorneys for the Class support the Settlement.

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  5. How do I know if I was part of the Settlement?

    You were a member of the Class and affected by the Settlement if you are a current or former CPAY customer and between January 1, 2010, and October 31, 2020, you were (a) assessed the TSSNF Fee (a/k/a TSYS Network Fee); (b) assessed the PCI Noncompliance Fee; (c) had your contractual credit card discount rates increased above your contractual rate by CPAY; and/or (d) had credit card transactions shifted by CPAY from lower-cost rate tiers to higher-cost rate tiers.

    If you received an Email or Postcard Notice from the Settlement Administrator, Plaintiffs’ counsel has determined from CPAY’s records that you were a Class Member.

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  6. Were there exceptions to being included?

    If you excluded yourself from the Settlement, you are no longer part of the Class and will no longer be eligible to receive any of the settlement benefits. This process of excluding yourself is also referred to as “opting out” of the Settlement.

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  7. What does the Settlement provide?

    CPAY will pay up to $84,000,000 into a Settlement Fund to pay (a) cash benefits to Class Members; (b) the cost of notifying the Class and administering the Settlement; and (c) subject to the Court’s approval, the fees and expenses of the lawyers who represent the Class and Service Awards to the Class Representatives.

    Class Members who maintained one or more payment card processing accounts with or through CPAY as of March 9, 2022, were considered “Current Customers.” If you are a Current Customer, you will automatically receive a payment.

    Class Members who are not Current Customers are considered “Former Customers.” Former Customers were eligible for a payment but must have filed a valid and timely Claim Form to get it.

    After all claims of Former Customers have been received, the following amounts will be totaled: payments to be made to Current Customers and Former Customers who filed a valid and timely claim; the costs of notice and administration; any taxes paid from the Settlement Fund; and the amount the Court authorizes for attorneys’ fees and expenses for Class Counsel and Service Awards to the Class Representatives. If this total is less than $84 million but more than $58.8 million, Defendant will retain the difference between the total and $84 million. If the total is less than $58.8 million, Current Customers and Former Customers who filed a valid and timely claim will share an additional payment of the difference between the total and $58.8 million. This additional payment will be made at the same time as the other cash payments described above.

    When the payments are ready for distribution, Current Customers and Former Customers who filed a valid and timely claim will be sent an email from the Settlement Administrator providing an option to receive payment electronically via PayPal or Venmo. For those customers without email addresses in the Settlement Administrator’s records and those customers who do not elect to receive their payment electronically via PayPal or Venmo within seven (7) days of such email being sent, payments will be sent via check to the physical address in the Settlement Administrator’s records. To this end, Class Members should notify the Settlement Administrator of any changes in their physical addresses.

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  8. How much will my cash payment be?

    Using the billing data CPAY produced in this case, Plaintiffs’ data expert has calculated each Class Member’s purported damages based on Plaintiffs’ claims and the challenged fees/practices at issue. Using these calculations and based on each Class Member’s pro rata share of the total purported damages as calculated by Plaintiffs’ data expert, the Settlement Administrator will allocate to each Class Member their pro rata share of the “Net Settlement Amount.” “Net Settlement Amount” means the portion of the $84 million settlement amount that remains after deducting costs of notice and administration and the amount the Court authorizes for attorneys’ fees and expenses for Class Counsel, Service Awards for the Class Representatives, and any taxes paid.

    You can find out more detail about the formula by reading the Settlement Agreement, and Exhibit 1 to it, here. In addition, as described in an answer to the previous question, Current Customers and Former Customers who filed a timely and valid claim may receive an additional amount depending on the value of Former Customer claims that are timely filed.

    The individual payments to Class Members will vary based on how much each Class Member was assessed by CPAY as a result of the challenged fees/practices at issue in the case. The actual amount of each Class Member payment will not be calculated until all the necessary information is available.

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  9. How could I have received a payment?

    Current Customers will automatically receive a payment. When the payments are ready for distribution, Current Customers will be sent an email by the Settlement Administrator that provides an option to receive payment electronically via PayPal or Venmo. For those customers without email addresses in the Settlement Administrator’s records and those customers who do not elect to receive their payment electronically via PayPal or Venmo within seven (7) days of such email being sent, payments will be sent via check to the physical address in the Settlement Administrator’s records. To this end, Current Customers should notify the Settlement Administrator of any changes in their physical addresses. It is not necessary for Current Customers to have filed a claim in order to receive a payment.

    Former Customers must have submitted their claim online or mailed it no later than August 6, 2022. Late claims will not be accepted. When the payments are ready for distribution, Former Customers who filed a valid and timely claim will be sent an email from the Settlement Administrator providing an option to receive payment electronically via PayPal or Venmo. For those customers without email addresses in the Settlement Administrator’s records and those customers who do not elect to receive their payment electronically via PayPal or Venmo within seven (7) days of such email being sent, payments will be sent via check to the physical address in the Settlement Administrator’s records. To this end, Former Customers should include their current contact information on their Claim Form and notify the Settlement Administrator of any subsequent changes in their contact information.

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  10. When will I get the settlement benefits for which I am eligible?

    The Court held a hearing on August 11, 2022, and approved the Settlement. There may be appeals, which could take more than a year to resolve. Cash payments to Class Members will be made after any appeals or other required proceedings have been completed. You may visit this website for updates on the progress of the Settlement. Please be patient.

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  11. What did I give up to get a settlement benefit or remain in the Class?

    Unless you excluded yourself from the Settlement, you cannot sue CPAY or be part of any other lawsuit against CPAY about the issues this Settlement resolves. You will also be bound by all of the Court’s decisions and the release contained in the Settlement. The specific claims you will be giving up against CPAY are described in Section X of the Settlement Agreement. Read it carefully. The Settlement Agreement is available here.

    If you have any questions, you can talk to the lawyers representing the Class, who are called “Class Counsel.” Their names are listed below in FAQ 18. You will not be charged to talk to Class Counsel. You can, of course, talk to your own lawyer at your own expense if you have questions about what this means.

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  12. How could I have excluded myself from the Settlement?

    The deadline to exclude yourself from the Settlement was June 7, 2022.

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  13. If I didn’t opt out, can I sue CPAY for the same thing later?

    No. Unless you excluded yourself from the Settlement, you give up any right to sue CPAY for the claims that this Settlement resolves.

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  14. If I excluded myself, can I get benefits from the Settlement?

    No. If you are a Current Customer and you excluded yourself, you will not receive a payment. If you are a Former Customer and you excluded yourself, do not send in a Claim Form asking for a payment.

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  15. Did I have a lawyer in the case?

    Yes. The Court appointed the following lawyers to represent you and other members of the Class: Tyler Hudson, Eric Barton, and Melody Dickson of Wagstaff & Cartmell, LLC in Kansas City, Missouri; and Adam Webb and Matt Klase of Webb, Klase & Lemond, LLC in Atlanta, Georgia. You were not charged for these lawyers. If you wanted to be represented by your own lawyer, you may have hired one at your own expense.

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  16. How were the lawyers be paid?

    You were not asked to pay any of the lawyers’ fees or expenses. The lawyers representing the asked the Court to pay them up to one-third of the Settlement Amount to compensate them for their time and the financial risk that they took when they agreed to represent the Plaintiffs on a contingent basis and agreed that they would get paid only if the lawsuit obtained a recovery. In addition, the lawyers asked the Court to reimburse them for all of the reasonable expenses they have incurred while prosecuting the litigation. CPAY agreed not to object to these requests provided the Court authorized fees of no more than one-third of the Settlement Amount. The Court approved the amount the lawyers received at the Final Approval Hearing on August 11, 2022. The lawyers’ fees and expenses approved by the Court will be paid from the Settlement Fund.

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  17. Did the Class Representatives get anything?

    The Class is represented by the two merchants who brought the case, Custom Hair Designs by Sandy, LLC and Skip’s Precision Welding, LLC. In addition to the benefits the Class Representatives will receive as members of the Class, Class Counsel asked the Court to pay Service Awards of up to $15,000 to each of these merchants to compensate them for the efforts and risk they took on behalf of the Class. CPAY agreed not to oppose the request. The Service Awards approved by the Court will be paid from the Settlement Fund. The Court approved the amount of the Service Awards at the Final Approval Hearing on August 11, 2022.

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  18. How could I have told the Court I don’t like the Settlement?

    The deadline to object to the Settlement was June 7, 2022.

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  19. What was the difference between objecting and excluding myself/opting out?

    Objecting is simply telling the Court that you don’t like something about the Settlement. You could have objected to the benefits provided by the Settlement or other terms of the Settlement only if you stay in the Class. Excluding yourself or “opting out” is telling the Court that you don’t want to be included in the Settlement. If you excluded yourself, you have no basis to object to the Settlement because the Settlement no longer affects you.

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  20. When and where will the Court decide whether to approve the Settlement?

    The Court held a Final Approval Hearing and approved the Settlement on August 11, 2022, at the United States District Court for the Central District of Nebraska.

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  21. Do I have to attend the hearing?

    No. Class Counsel will have answered questions the Court may have. You were welcome, however, to come at your own expense. If you submitted a written objection, you did not have to come to the Court to talk about it.

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  22. What happens if I do nothing at all?

    If you are a Class Member and did nothing, you will remain a part of the Class and will not be able to sue CPAY about the claims being resolved through the Settlement. If you are a Current Customer, you will automatically receive the cash payment to which you are entitled. If you are a Former Customer, you will receive nothing unless you filed a claim.

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  23. Are more details available?

    This FAQ summarizes the Settlement. More details are in the Settlement Agreement itself. You can get a copy of the Settlement Agreement here, from the Settlement Administrator by calling toll-free 1-855-654-0931, or by writing to:

    Central Payment Settlement Administrator
    P.O. Box 5747
    Portland, OR 97228-5747

    The status of the Settlement will be posted on this website.

    Please do not contact the Court with questions about the Settlement.

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