Angry merchants make good on class action against Tyro Payments

Angry merchants make good on class action against Tyro Payments

Disgruntled merchants have made good their threats to sue Tyro Payments (ASX: TYR) over the failure of the company’s EFTPOS terminals earlier this year, with a class action filed against the fintech in the Federal Court of Australia.

Tyro, which has been rolling out a compensation package for affected clients since some of the company’s EFTPOS machines suffered a debilitating three-week outage in January, informed the ASX that proceedings have been filed against it. However, Tyro says it has yet to be served.

The outage of terminals in January led to thousands of Australian businesses losing card payment capabilities for customer purchases, in some cases for weeks.

Tyro revealed the outage was due to an issue in specific versions of the terminal platform software supplied by Worldline, the manufacturer of the machines.

While the company has been progressing with various compensation packages for affected merchants, Tyro reveals that, nine months after the incident, all claims have not been settled.

Tyro says the remediation program is aimed at providing a ‘fast and straightforward channel’ for merchants to claim against financial losses caused by the outage.

“This ‘make good’ process continues to be available to any financially impacted merchant who has not as yet sought remediation,” says the company. “Tyro remains fully committed to this approach notwithstanding the proceedings instituted.”

Affected merchants have been offered a merchant service fee rebate to offset their losses or the option of a more tailored solution to cover their losses.

Tyro says 92 per cent of merchants who chose either of these options have had their claims settled while the company works with the remainder to resolve their claims.

It’s unclear how many merchants are party to the current class action.

Tyro has retained King & Wood Mallesons to defend these proceedings.

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