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nid 94995
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ataylor@vixio.com
US Track 1
Bureau of Consumer Protection
financial services
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1844 charsUnited States Federal Trade Commission Orders Payment Processor Nuvei to Implement Merchant Screening Practices
On September 4, 2026, the Federal Trade Commission (FTC) Bureau of Consumer Protection settled charges against Canada-based Nuvei Corporation and its subsidiaries—Nuvei International Group Limited, Nuvei Limited, SafeCharge Digital Limited, and Nuvei Technologies Inc.—for allegedly facilitating merchant fraud. Nuvei will pay $4.85 million in consumer redress and implement robust compliance measures.
The FTC alleged that Nuvei knowingly processed payments for merchants engaged in deceptive practices, including tech support scams. Between 2017 and 2023, Nuvei processed more than $30 million in consumer payments for Reimage, an offshore tech support scam targeting U.S. consumers. The payment processor also maintained merchant accounts for schemes selling fraudulent business opportunities with false earnings claims, merchants impersonating government tax authorities, and merchants previously terminated by other processors for excessive chargebacks or fraud. Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection, said the action underscores the Commission's commitment to ensuring the payments system operates free of fraud.
Under the settlement order, Nuvei must ban payment services to any person selling tech support products or services via telemarketing or pop-up messages; prohibit false or misleading statements to obtain merchant accounts; and avoid tactics to circumvent fraud or risk monitoring programs, including load balancing. The order requires Nuvei to screen and monitor existing and prospective clients, with enhanced scrutiny for merchants in outbound telemarketing and those exceeding specified chargeback rate limits. The FTC filed the complaint and final order in the U.S. District Court for the District of Arizona on September 4, 2026. The Commission vote authorizing the filing was 2-0.
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2458 charsUS Federal Trade Commission Fines Nuvei $4.85m for Facilitating Tech Support Scams
On September 4, 2026, the US Federal Trade Commission (FTC) filed a complaint and stipulated order against global payment processor Nuvei Corporation and its subsidiaries, alleging violations of Section 5(a) of the Federal Trade Commission Act for unfair payment processing practices and the Telemarketing Sales Rule for assisting and facilitating deceptive telemarketing. The order requires Nuvei to pay $4.85m in monetary relief, which will be used for consumer redress, and imposes permanent injunctive relief prohibiting the unfair payment processing practices identified in the complaint.
The FTC alleged that Nuvei knowingly processed payments for merchants engaged in fraudulent advertising, including over $30m for Reimage, an offshore tech support scam, despite warnings from Visa, Mastercard, and its own risk team. Nuvei also processed for other deceptive merchants, including business opportunity scams and government impersonation schemes, and allegedly engaged in tactics like load balancing and using shell companies to avoid fraud monitoring.
Key terms of the order include:
Ban on processing for tech support and other scam merchants: Nuvei is permanently prohibited from providing payment processing services to any person selling Technical Support Products or Services by telemarketing or by pop-up messages relating to security or performance issues on any electronic device, or any person listed on the Mastercard MATCH list for excessive chargebacks, fraud, or other specified reasons.
Prohibition on false statements and evasion tactics: Nuvei is prohibited from making false or misleading statements to obtain merchant accounts or payment processing services, and from engaging in tactics to avoid fraud and risk monitoring programs, including load balancing and using shell companies to apply for additional accounts.
Screening and monitoring requirements: Nuvei must implement reasonable screening of prospective Covered Clients (including outbound telemarketers and merchants in certain categories) before providing payment processing services. Nuvei must conduct enhanced monitoring and investigation of any existing client whose monthly chargeback rate exceeds one percent with more than 75 chargebacks in any two of the past six months.
The order also requires Nuvei to maintain records demonstrating compliance and submit compliance reports to the FTC for ten years. The company neither admits nor denies the allegations.