News & Analysis as of

Merchants Payment Processors

Goodwin

Want to Have Customers Cover Payment Processing Fees? What You Need to Know About Credit Card Surcharging

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Credit card surcharging is on the rise. Imposing a surcharge in a compliant manner is more than adding a fee at the point of sale. Below we review on a high level the legal and commercial considerations for merchants before...more

Arnall Golden Gregory LLP

Complete Win, Secured Early, for Payment Processor and Sponsor Bank in Business Email Compromise Fight

As we have previously explored, litigation involving account takeovers (“ATOs”) and business email compromise (“BEC”) fraud have produced a muddled legal landscape. As between payors and intended payees, courts have tended to...more

Venable LLP

Maximizing the Benefits (and Minimizing the Risks) of Payment Orchestration

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The payments industry continues to evolve in response to the demand for flexible, fast, and secure payment options. Innovations have included payment facilitation, push-to-card services, and real time payments, among others....more

Arnall Golden Gregory LLP

Fiserv’s Georgia MALPB Charter: Implications for the Payments Industry

Fiserv’s journey to obtain a Merchant Acquirer Limited Purpose Bank (“MALPB”) charter in Georgia stands out for its speed and efficiency. After submitting its application in January 2024, Fiserv received its charter on...more

Sheppard Mullin Richter & Hampton LLP

Swipe Fee Showdown: Illinois Passes Novel Payments Law

Illinois has become the first state to enact restrictions on credit and debit card interchange fees – commonly known as swipe fees – linked to taxes and gratuities. The Interchange Fee Prohibition Act (the “Act”), embedded as...more

Arnall Golden Gregory LLP

BlueSnap: The FTC Remains Aggressive and Sheds New Light on Disfavored Merchant Verticals, Acquirer Practices

On May 1, 2024, the FTC filed suit against BlueSnap, an international payment facilitator, along with two of its executives, simultaneously submitting a stipulated order containing both monetary and non-monetary relief. The...more

Jenner & Block

Ninth Circuit Limits Jurisdiction Over Web-Based Platforms

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In a recent decision, Briskin v. Shopify, Inc., 2023 WL 8225346 (9th Cir. Nov. 28, 2023), the Ninth Circuit held that a Canadian-based company, Shopify, which provides a web-based payment processing platform to merchants...more

Troutman Pepper Locke

Applications for Georgia Merchant Acquirer Limited Purpose Bank Charter: A Positive Sign for Fintech and Nonbank Direct Access to...

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On January 12, Fiserv announced that it filed an application with the state of Georgia for a merchant acquirer limited purpose bank (MALPB) charter. This application is a seismic development and positive sign for those in the...more

Venable LLP

Increasing Regulatory Scrutiny for the Merchant of Record Model

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The Federal Trade Commission (FTC) recently announced a settlement with a group of related companies and two of their officers that used a merchant of record (MoR) model to facilitate sales for merchants. According to the...more

BakerHostetler

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

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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

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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

Alston & Bird

Third Party Payment Processors as ‘Covered Persons’: A Return to CFPB Regulation by Enforcement?

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A&B ABstract: The CFPB has recently asserted extraordinary authority to make any payment processor monitor the activities of any merchant for which it processes payments, even if that merchant does not provide consumer...more

The Volkov Law Group

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

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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

Arnall Golden Gregory LLP

Blind Eyes and Active Assistance: An FTC Commissioner Sheds Light on Regulatory Expectation for the Payments Industry

Regulatory scrutiny of the payments industry remains intense. Meanwhile, regulators’ expectations of payment processors, ISOs, and payment facilitators have never been higher. Recent enforcement actions have not been limited...more

Davis Wright Tremaine LLP

FTC Leads Renewed Enforcement Focus on Payment Processors

Complaints alleging widespread institutional failures in controlling fraudulent payment processing activity; rogue merchants charging consumer accounts thousands of dollars based on dubious or nonexistent authorizations; and...more

Orrick, Herrington & Sutcliffe LLP

Fraud Alert: Payment Processors And ISOs Must Ensure That Their Compliance Procedures Can Detect COVID-19 Fraud

The Federal Trade Commission (“FTC”) plans to aggressively police companies that use deceptive marketing to take advantage of consumers’ fears relating to the COVID-19 pandemic....more

Ballard Spahr LLP

FTC permanently bans payment processor for violating 2009 order requiring monitoring of merchant clients

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A payment processor and its individual owner have entered into a settlement with the FTC to settle charges that they violated a 2009 federal district court order that required them to review and monitor their merchant clients...more

White & Case LLP

Consumer financial services: The road ahead: Payment processing

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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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