News & Analysis as of

Payment Processors Enforcement Actions Federal Trade Commission (FTC)

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

Hudson Cook, LLP

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

Hudson Cook, LLP on

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

Venable LLP

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

Venable LLP on

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

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

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

Venable LLP on

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...

Venable LLP on

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

Venable LLP on

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...

Venable LLP on

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

Wiley Rein LLP

FTC Commences Rulemaking Targeting Business and Government Impersonation Fraud

Wiley Rein LLP on

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

Goodwin on

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

Goodwin

FTC Announces $10.9 Million Settlement for Credit Card Laundering Scheme

Goodwin on

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

Goodwin on

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)

Hudson Cook, LLP on

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

Bradley Arant Boult Cummings LLP

FTC Imposes $110 Million Fine Against Payment Facilitator and Its Executives

Payment processor/facilitator Allied Wallet, its CEO, and two other corporate officers, recently agreed to settle Federal Trade Commission (FTC) charges that they assisted or knowingly processed fraudulent transactions for...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

Bradley Arant Boult Cummings LLP

Five Privacy Practices Every Company Should Address in the Wake of the FTC’s Enforcement Action against PayPal

Privacy is serious business. This was made clear in the Federal Trade Commission’s (FTC) recent announcement that it had settled its complaint against Venmo, PayPal’s peer-to-peer payment service, for misrepresentations to...more

Carlton Fields

Learning from Venmo’s Compliance Issues: How to Avoid Inadequate Privacy Disclosures

Carlton Fields on

PayPal, the company responsible for the popular mobile payments app, Venmo, recently agreed to voluntarily bolster its privacy and security disclosures—and pay a $175,000 penalty—in response to an enforcement action brought...more

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