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Payment Processors in Regulatory Crosshairs – Recent Cases

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Payment processors have recently become increasingly the target of regulatory investigations and actions by the Federal Trade Commission (“FTC) and the Consumer Financial Protection Bureau (“CFPB”). The results can be extremely severe to the processors and ISOs involved, as well as their owners and executives. The most common punishments, either by agreement or order, are industry bans, fines (and suspended fines) against the entities and the owners, mandatory implementation of strict monitoring and screening requirements and automatic triggers for investigation based on chargeback rates.

Nonbank Financial Companies Face Scrutiny from Consumer Financial Protection Bureau

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Nonbank financial companies that pose risks to consumers will face more scrutiny from the Consumer Financial Protection Bureau (“CFPB”) using statutory authority that it previously did not use. Many nonbank financial services providers are usually only examined for compliance with federal financial laws during an investigation or if the CFPB does general research into those markets, but that will change with additional examinations. The CFPB is also adding a method to make public its rules to make final determinations and orders regarding nonbank risk-decisions.

Why Companies Rely On Global Legal Law Firm As Their General Outside Counsel

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Last week marked one year since the Supreme Court’s ruling in AMG Capital Management, LLC v. FTC, in April of 2022, limiting the FTC’s ability to seek monetary relief for restitution or disgorgement. Specifically, the Court held that the FTC was misusing its authority to obtain monetary relief under Section 13(b), a practice that had gone on for decades.

Cómo salir de MATCH: Todo lo que necesitas saber

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Mastercard compila y administra una lista negra llamada Merchant Alert To Control High-Risk. Esta lista negra, comúnmente llamada “lista MATCH”, es una base de datos de comerciantes o dueños de negocios cuyas cuentas han sido canceladas o han sido consideradas un riesgo significativo para los procesadores de pago durante los últimos cinco años por varias razones. Si bien la lista MATCH de Mastercard es una de las herramientas de información más eficientes que los bancos pueden usar para evaluar a los posibles solicitantes, estar en esta lista negra puede traer serios problemas. Esto se debe a que los bancos y los procesadores generalmente se niegan a interactuar con los comerciantes que terminan en la base de datos de la lista MATCH.

Fallout from AMG Ruling – One Year Later

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Last week marked one year since the Supreme Court’s ruling in AMG Capital Management, LLC v. FTC, in April of 2022, limiting the FTC’s ability to seek monetary relief for restitution or disgorgement. Specifically, the Court held that the FTC was misusing its authority to obtain monetary relief under Section 13(b), a practice that had gone on for decades.

Mastercard Changes Rules for Subscription based Purchases

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Since the rise of the pandemic, more and more consumers are purchasing goods and services electronically. One way that these goods and services are purchased is in the form of subscriptions. Subscription services seem to be everywhere, with consumers purchasing such things as the streaming of entertainment, food delivery and video games in addition to a whole host of other goods and services.