FTC Settled Fraud Charges Against Payment Processors

Payment processors Nuvei and Humboldt Merchant Services will pay millions to settle charges related to merchant fraud.

Updated on Oct. 12, 2026 in Financial Crime

FTC Settled Fraud Charges Against Payment Processors

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Should payment processors be held legally liable for the fraudulent actions of the merchants they serve?

The Federal Trade Commission has reached settlement agreements with Nuvei and Humboldt Merchant Services over allegations that they facilitated payment processing for fraudulent companies. Nuvei and Humboldt have agreed to pay $4.85 million and $12 million, respectively, for consumer redress.

Why it matters

The FTC pursued these settlements to protect the integrity of the U.S. payment system by holding financial intermediaries accountable for facilitating merchant fraud. These actions aim to prevent processors from bypassing risk controls to aid scammers.

The U.S. District Court for the District of Arizona approved the $4.85 million Nuvei settlement, while the U.S. District Court for the Eastern District of Michigan finalized the $12 million agreement with Humboldt Merchant Services.

The players

Federal Trade Commission

The Federal Trade Commission is a bipartisan federal agency that works to protect consumers and promote competition by preventing deceptive and unfair business practices.

Nuvei

Nuvei is a global payment technology company that provides merchant acquiring services and processing solutions for businesses.

Humboldt Merchant Services

Humboldt Merchant Services is a payment processing firm that facilitates credit and debit card transactions for various commercial entities.

The details

Nuvei allegedly used load balancing to spread transactions for the tech support scam Reimage across multiple accounts, while Humboldt purportedly utilized over 1,000 shell merchant accounts with chargeback rates 10 times higher than industry limits. Humboldt also allegedly processed transactions through lower-risk bank identification numbers to hide fraudulent activities.

Between 2017 and 2023, Nuvei processed over $30 million for the Reimage scam.
In 2024, the FTC initiated enforcement actions against Reimage and Legion Media.
The FTC announced the official settlements on October 12, 2026.

Legal Context

This enforcement action aligns with the Federal Trade Commission Act's prohibition of unfair or deceptive acts by penalizing the financial infrastructure that enables widespread consumer fraud. It marks a continued effort by regulators to hold payment processors accountable for systemic compliance failures.

These settlements mandate stricter oversight for payment processors, potentially reducing the prevalence of fraudulent merchants in the marketplace. Consumers should continue to monitor financial statements for unauthorized charges resulting from shell company scams.

The takeaway

Regulators are increasingly focusing on the gatekeepers of the digital economy to curb widespread financial scams. Consumers can protect themselves by verifying the legitimacy of merchants before authorizing payments, especially when dealing with technical support services.