News & Analysis as of

Merchants Enforcement Actions

Sheppard Mullin Richter & Hampton LLP

FDIC Orders Bank to Pay $1.225 Billion for Alleged Interchange Fee Misclassification 

On April 18, the FDIC announced a consent order against a Delaware-based bank alleging that the bank engaged in unsafe and unsound banking practices and violated various federal consumer protection laws, including Section 5...more

Hudson Cook, LLP

Yellowstone Capital Settles Lawsuit with New York Attorney General

Hudson Cook, LLP on

On January 16, 2025, Yellowstone Capital and other entities, along with Yellowstone officers Isaac Stern and Jeffrey Reece, settled claims by New York Attorney General Letitia James that Yellowstone and the other entities...more

The Volkov Law Group

DOJ Charges Visa with Monopolization and Exclusionary Conduct in the Debit Card Market

The Volkov Law Group on

The Justice Department’s Antitrust Division has been aggressively pursuing civil enforcement actions.  While criminal enforcement of antitrust laws has been depressed, DOJ has found success in pursuing civil and merger...more

Orrick, Herrington & Sutcliffe LLP

FTC orders card company to let merchants use other debit networks

On December 23, the FTC ordered a payment card company to stop blocking merchants from using competing debit payment networks. According to an agency investigation, the company allegedly violated provisions of the Durbin...more

BakerHostetler

Not Every Payment Processing Case Is the Same - the Latest FTC Case Provides Some Helpful Reminders

BakerHostetler on

Most of the Federal Trade Commission’s (FTC) law enforcement actions involving payment processors have exclusively focused on allegations that processors did not do sufficient due diligence before onboarding questionable...more

Alston & Bird

Update Regarding the BrightSpeed Payment Processor Case

Alston & Bird on

On January 18, after approximately fourteen months of settlement negotiations, the CFPB announced that it secured a settlement agreement with BrightSpeed Solutions, Inc., a third-party payment processor that had ceased...more

Goodwin

CFPB Issues Consent Order Against Fintech for Enabling Merchants to Secure Loans for Consumers Without Their Authorization

Goodwin on

On July 12, 2021, the Consumer Financial Protection Bureau (CFPB) issued a consent order (the Consent Order) against a Fintech company that facilitates home improvement loans (the Fintech).  The CFPB claims that the Fintech...more

The Volkov Law Group

BitPay Agrees to Pay $507,375 to Settle OFAC Sanctions Violations

The Volkov Law Group on

The Treasury Department’s Office of Foreign Asset Control continues to focus enforcement activities on digital currency companies.  This focus is likely to increase given recent comments by Janet Yellen, the head of the...more

White & Case LLP

Consumer financial services: The road ahead: Payment processing

White & Case LLP on

The CFPB continued to be active in the consumer payments space in 2018, while the Federal Reserve and market participants considered the future of payment processing, including the development of faster payment systems....more

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