Fiserv Unit Asks Ohio Justices for $2 Million Sales Tax Refund

A Fiserv Inc. subsidiary told the Ohio Supreme Court that the state improperly taxed services banks use to verify that a customer has the funds to complete a transaction.

In Ohio, automatic data processing, electronic information services, and computer services are taxable, but professional and personal services aren’t. CheckFree Services Corp.'s transactions with banks fall into the latter category because the company adds its “secret sauce” to transfer funds more efficiently, the company told the court in its bid for a sales tax refund of $1.89 million, plus interest.

Taxing these transactions would have a significant impact on the financial ...