However, the bank had denied all allegations. (Read more: Wells Fargo Settles Decade-Long Lawsuit on VA Loans ) Additionally, a federal lawsuit has been filed against Wells Fargo's joint venture with payment processor First Data Corp (FDC), accusing it of misleading thousands of merchants by charging them unauthorized fees. The venture, known as Wells Fargo Merchant Services, was formed to help small businesses and other merchants across the country to process their credit and debit card transactions. It had promised to provide a transparent pricing policy to the merchants. However, per the lawsuit filed in Brooklyn, on behalf of Patti's Pitas, a now-closed restaurant in Pennsylvania, tour operator Queen City Tours in Charlotte, NC, and other merchants, the venture failed to live up to its promises. It was overbilling merchants for its services and was charging them with unanticipated fees, which they were claiming to be 'interchange charges.'