Category Archives: Payment Processing

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Exactly How Long is the Long Arm of the Law? The FTC Seeks to Extend its Reach to Offshore Payment Processors

We frequently hear about the “long arm of the law,” but, in the case of the Federal Trade Commission, just how far does that arm actually reach? The FTC recently filed an amended complaint in the U.S. District Court for the Central District of California adding SIA Transact Pro, a Latvian payment processor, and its … Continue Reading

Online Lender Settles with FTC on UDAP, TSR, and EFTA Claims

The Federal Trade Commission’s settlement with an online consumer lending platform, Avant LLC, highlights the importance of legal and regulatory compliance in the fintech space, including—perhaps most importantly—what happens after a loan is made. According to the Commission’s complaint, Avant offered personal consumer loans through its website. The complaint notes that although the loans were … Continue Reading

Mastercard Targets Negative Options In 2019 – Demands Transparency

As 2019 goes into full swing, it’s important for providers of payment processing services (referred to here as “acquirers”) and their merchants or submerchants to prepare for the various regulatory and industry changes coming this year. One such significant change comes in the form of Mastercard’s updated rules for negative option billing programs. Set to … Continue Reading

New Farm Bill Cracks Open Door to Processing for Legalized Hemp and CBD Oil

Signed into law on December 20, 2018, the 2018 Farm Bill may present a tremendous opportunity for banks and payments companies to provide banking, processing, and other services to the hemp industry. We expect a variety of companies to move swiftly in developing, marketing, and selling products (including CBD oil) that, until yesterday, were controlled … Continue Reading

No Math Allowed – The Saga of New York Surcharge Law Continues

Whether merchants can charge consumers who pay with a credit card more and how that increase in price is described has been the subject of extensive litigation. According to a divided New York Court of Appeals, New York’s anti-surcharge law, which banned merchants from imposing a surcharge on credit customers, does not actually prohibit a … Continue Reading

Visa Updates Rules for Marketplaces

In recognition of a rapidly changing ecommerce environment, Visa has created a new category of payment aggregator – a “marketplace” – for entities that bring “together Cardholders and retailers on an electronic commerce website or mobile application.” The new marketplace designation will have an immediate impact in the ecommerce market by clarifying the status and … Continue Reading

Say Goodbye to Credit Card Signature Requirements

The days of signing your grocery receipt may be over soon, as the four major credit card brands (American Express, Discover, Visa, and Mastercard) are each making efforts to do away with signatures for various credit card transactions. The extent and geographic reach of these changes, however, are different for each brand, but one commonality … Continue Reading

The Joint (And Several Liability) is Jumpin’

We wrote previously that for payment processors the death of Operation Choke Point was greatly exaggerated.  We also noted that a prior challenge to the FTC’s ability to impose joint and several liability on an executive for his former employer’s actions had failed. A recent appellate victory for the FTC reinforces both these points.  In … Continue Reading

Mobile App Settles Charges with FTC that it Broke Pact with Consumers

Last week, in an ironic twist of fate, the Federal Trade Commission (FTC) charged the operators of the Pact Mobile App, which paid consumers for keeping their fitness promises and charged consumers who missed their goals, for failing to honor its promises to consumers. According to the FTC’s complaint, when consumers signed up for the … Continue Reading

FTC Settles Major Prepaid Card Advertising Case and Doesn’t Say Much about It

For those of us who are regular readers of FTC press releases, the allure of last week’s announcement that the FTC settled its lawsuit against prepaid card company NetSpend Corporation may be more in the substance – or lack thereof – of the announcement itself. In four sentences, the FTC simply stated that the advertiser … Continue Reading

Debt Collection Tops 2015 List of Most Common Consumer Complaints

The Federal Trade Commission (“FTC”) has just released its Annual Summary of Consumer Complaints, and debt collection (29%), identity theft (16%), and imposter scams (11%) top the list of the most common categories of consumer complaints. The Consumer Sentinel Network Data Book is produced every year from complaints received by the FTC’s Consumer Sentinel Network, … Continue Reading

FTC Amends Telemarketing Sales Rule: Amendments Include a Ban on the Use of Certain Payment Mechanisms in Telemarketing and Clarification on Existing Provisions, Including the Business-to-Business Call Exemption

Last week, the Federal Trade Commission (FTC) released new amendments to the Telemarketing Sales Rule (TSR) that the FTC first proposed in July 2013 and that will go into effect in 2016.  As expected, the new amendments make a number of substantial changes, including a ban on the use four types of payment methods in … Continue Reading

Payment Processing Alert for Internet Retailers: The October 2015 EMV Shift Will Complicate Your Chargeback Management Efforts

What if your chargebacks increased by 40%, practically overnight?  This is one estimate by payments industry experts of the potential impact on card-not-present (CNP) merchants that could result from the October 2015 shift to EMV chip technology in the U.S. market.  Payments companies are worried that many CNP merchants, including Internet retailers, aren’t prepared to … Continue Reading
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