Riverside Payments Settles FTC Deception Case

The payment processor and affiliates agreed to pay $600,000 after allegations they misled small businesses about savings and fees.

Updated on Nov. 3, 2026 in Openings & Closings

Wooden shop counter with an unlit card-payment terminal and a brass pen under soft overcast window light, with no people visible. — Riverside Payments and affiliate Cascade Equipment Leasing agreed to pay $600,000 to settle FTC and Washington state allegations that they misled small businesses about fees and contract terms. AI Illustration. Upload story photo >

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Riverside Payments, its affiliate Cascade Equipment Leasing LLC, and their operators agreed to pay $600,000 to settle allegations brought by the FTC and Washington state. The proposed order lets affected small businesses terminate their payment-processing agreements without an early termination penalty.

Why it matters

The complaint alleges small businesses that switched processors often ended up paying more than before, after being promised savings of 40% to 60%. The case highlights how undisclosed fees and buried contract terms can affect merchants across Washington state.

The $600,000 payment is far below the suspended $32.1 million judgment against Riverside, Cascade, and their owners. The complaint alleges promised savings of 40% to 60% were not borne out, with businesses typically paying more after switching providers.

The players

Federal Trade Commission

The FTC is the U.S. federal agency that enforces consumer protection and antitrust laws, and it brought this complaint jointly with Washington state.

Riverside Payments

Riverside Payments is a payment-processing company that sold merchant processing services to small businesses.

The details

The FTC alleges Riverside failed to disclose activation, batch, and data security compliance fees in sales quotes. It also alleges the companies buried automatic renewal terms and a $695 early termination fee in a 26-page electronic agreement, and advertised a no-risk cancellation guarantee that was not honored.

Monday: FTC announced the settlement and the complaint was filed in the U.S. District Court for the Western District of Washington.
Following court approval: Customers may terminate agreements within a 60-day period without early termination penalties.

Market Landscape

The case applies the FTC's Section 5 authority against deceptive trade practices to the merchant payment-processing industry. It shows regulators pursuing sales-practice and fee-disclosure claims against small-business service providers.

Small businesses that signed with Riverside or Cascade may be able to exit their processing agreements without the $695 early termination fee. Merchants should review fee schedules and renewal terms before committing to any new payment processor.

The takeaway

Small businesses should compare total processing costs, including activation and compliance fees, rather than relying on headline savings claims. Reading the full contract for renewal and termination terms before signing can prevent unexpected charges.

What happens next

Once the judge approves and signs the proposed order, it will take legal effect, and the 60-day window for affected customers to terminate agreements without penalty will open.