News & Analysis as of

Payment Processors Enforcement Actions

Goodwin

FTC Settles with UK-Based Payment Processor Over Alleged Tech Support Scams

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​​​​​​​On June 16, 2025, the FTC announced ​it had reached a settlement ​with a UK-based payment processor, resolving allegations that the company facilitated deceptive tech-support schemes by processing payments for...more

Troutman Pepper Locke

Suit Against Cannabis Giant Trulieve Underscores Cashless ATM Risks and the Need for Banking Reforms

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In a February 19 complaint filed in Arizona state court, Texas-based payment processer Switch Commerce LLC argued that multistate cannabis operator Trulieve Cannabis Corp. and its affiliates should be responsible for a...more

Sheppard Mullin Richter & Hampton LLP

Social Casino Sweepstakes Model is Under Fire – What Game Companies, Payment Processors and App Stores Need to Know

Social casino games remain incredibly popular and profitable. This success has drawn attacks from plaintiffs’ class action lawyers in the form of gambling loss recovery lawsuits and other consumer-based actions. Some have...more

Clark Hill PLC

What Debt Settlement Companies Need to Know When Working With Third Party Payment Processors (Whitepaper)

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Clark Hill’s Financial Services and Regulatory Compliance Group has authored a whitepaper for debt settlement companies considering engaging a third-party payment processor for managing accounts and handling financial...more

Sheppard Mullin Richter & Hampton LLP

CFPB Hits Telecom Giant with Fines for Alleged Exploitation of Incarcerated Consumers

On November 14, the CFPB entered into a consent order with a telecommunications company and its subsidiaries (collectively, the “company”) for allegedly withdrawing millions of dollars from over half a million consumer...more

Hudson Cook, LLP

"OVER THE LINE!"  Where Banking and Gaming Intersect, the CFPB Has Something to Say.

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The line between virtual and reality is getting thinner. Gamers pay gaming companies real currency for virtual in-game currency to buy skins, create the world they want to live in (virtually), or purchase loot that aid in...more

Harris Beach Murtha PLLC

[Webinar] Third Party Risk is Your Risk - January 24th, 11:00 am - 12:00 pm EST

• Highlights of recent joint agency guidance on Third-Party Risk Management (3PRM) • How 3PRM considerations have increased in importance in BSA/AML compliance programs and enforcement actions • Lessons learned from...more

Shipkevich PLLC

CFPB Takes Another Decisive Action Against Nonbank Payment System

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The Consumer Financial Protection Bureau (“CFPB”) continues focus its forces on the payment processing space. In June 2023, we published an article foretelling the next regulatory frontier: nonbank payment systems. In July...more

Hudson Cook, LLP

CFPB Orders Payment Processor to Implement Information Security Program and Pay $25 Million Penalty

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On June 27, 2023, the CFPB filed an administrative consent order against a payment processor headquartered in Elkhorn, Nebraska. The order alleges that on a single date in 2021, the processor erroneously initiated about 1.4...more

Orrick, Herrington & Sutcliffe LLP

Credit union to pay $558,000 in cyber fraud case

On January 12, the U.S. District Court for the Eastern District of Virginia ruled that a credit union (defendant) is responsible for $558,000 in compensatory damages for processing a payment order that was allegedly induced...more

Venable LLP

Payment Processors: Are You Prepared to Uncover "Dark Patterns"?

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Risk management personnel who underwrite e-commerce merchants should have some basic understanding of the types of online merchant marketing and sales practices that are deceptive and misleading....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

Sheppard Mullin Richter & Hampton LLP

FTC Takes Action Against Payment Processor

On May 24, the FTC finalized an order against an electronic payment processor and its owners for allegedly opening credit card processing accounts for fake companies on behalf of a scam company previously sued by the FTC....more

Venable LLP

FTC Approves Administrative Settlement with Payment Processor, Electronic Payment Systems

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Yesterday, the Federal Trade Commission (FTC) moved to dismiss its long-running enforcement action against Electronic Payment Solutions (EPS) pending in the District of Arizona after the Commission voted 4-0 to approve a...more

Venable LLP

[Webinar] Payment Processors in the Regulatory Crosshairs: Updates on Regulatory Scrutiny and Best Practices for Compliance - May...

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In recent years, payment processors and other financial intermediaries have faced heightened scrutiny from regulatory agencies, including the Federal Trade Commission, for their relationships with companies engaged in...more

Venable LLP

Update: Judge Allows Most of Receiver’s Claims Against Wells Fargo for Involvement with Negative Option Marketers to Proceed

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A few weeks ago, we wrote an article discussing two enforcement actions by the Federal Trade Commission in the Central and Southern Districts of California that highlighted the risks to payment processors and financial...more

Venable LLP

[Webinar] New Laws and Requirements for Automatic Renewal Programs: What Businesses Need to Know in 2022 - February 23rd, 2:00 pm...

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The laws and rules governing automatic renewal programs continue to change on a regular basis. Over the past year, the Federal Trade Commission has announced a number of settlements and lawsuits enforcing the federal Restore...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

Wiley Rein LLP

FTC Commences Rulemaking Targeting Business and Government Impersonation Fraud

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On December 16, the Federal Trade Commission (FTC) voted 4-0 to issue an Advance Notice of Proposed Rulemaking (ANPRM) to commence a rulemaking targeting rising business and government impersonation fraud. Critically, the...more

Goodwin

FTC Reaches $500,000 Settlement with Payment Processor for Its Role in Alleged Student Loan Debt Relief Scheme

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On November 8, 2021 the Federal Trade Commission (FTC) announced that it entered into a stipulated order with a payment processor, resolving allegations that the payment processor violated Section 5 of the Federal Trade...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

Goodwin

FTC Announces $10.9 Million Settlement for Credit Card Laundering Scheme

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On February 10, 2021, the Federal Trade Commission (FTC) announced settlements with two payment processing companies and two individuals, resolving claims concerning an alleged credit card laundering scheme perpetrated in...more

Goodwin

FTC Reaches $1.5 Million Settlement with Payment Processor Over Fraud Allegations

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On December 10, 2020, the Federal Trade Commission (Commission) announced that it reached a settlement with a payment processor and its former CEO for alleged violations of the Federal Trade Commission Act (FTCA). ...more

Goodwin

FTC Reaches $40 Million Settlement with Payment Processor Over Laundering Allegations

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On May 19, 2020, the Federal Trade Commission announced that it had reached a $40.2 million settlement with a payment processing company and one of its executives after the company allegedly failed to monitor and heed...more

Hudson Cook, LLP

Current Developments in Bank Deposits and Payment Systems (Spring 2020)

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This survey summarizes several recent developments affecting bank deposits and payment systems. These include payments-related consent orders and enforcement actions by the Consumer Financial Protection Bureau (“CFPB”) and...more

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