LEVI & KORSINSKY, LLP: MERCHANT CATEGORY CODE BANKING TRENDS AND WRITE-OFF CHALLENGES AT ISSUE IN PAYSAFE LITIGATION

Alert: Claims Focus on Alleged Misrepresentations About Banking Relationships

NEW YORK, March 4, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP reminds purchasers of Paysafe Limited (NYSE: PSFE) securities of a pending securities class action. THE CASE: A class action seeks to recover damages for investors who purchased Paysafe securities between March 4, 2025 and November 12, 2025. YOUR OPTIONS: You may be entitled to compensation without payment of any out-of-pocket fees.

See if you can recover losses

A payment processor's ability to generate revenue depends on maintaining active relationships with bank sponsors willing to process transactions for its merchant base. When merchants operate in higher-risk categories, securing and retaining those banking relationships becomes materially more difficult and costly. Paysafe's noncore ecommerce segment allegedly operated in exactly this challenging space.

The Alleged Merchant Category Code Banking Dilemma

The filing states that Paysafe operated in what its own leadership later described as a "lower-tier market" involving travel-related and other higher-risk Merchant Category Codes. As set forth in the complaint, these categories face heightened scrutiny from bank sponsors, who may decline to process additional volume or withdraw sponsorship entirely.

Write-Off Impact and Merchant Shutdown Consequences

It is alleged that a merchant client's sudden shutdown late in the third quarter of 2025 triggered a multi-million-dollar write-down. The Company's Form 6-K for the period disclosed credit loss expense of approximately $13.2 million and write-offs of approximately $9.9 million, both driven by the Merchant Solutions segment.

Alleged Merchant Category Impact by the Numbers

Start your claim now or call (212) 363-7500.

"The complaint raises serious questions about whether investors received accurate information regarding the risks in Paysafe's merchant portfolio and the Company's ability to sustain its banking relationships," stated Joseph E. Levi, Esq.

Investors have until April 7, 2026 to seek lead plaintiff status.

Levi & Korsinsky, LLP is a Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.

SOURCE Levi & Korsinsky, LLP