FTC proposes $12 million settlement with payment processor over alleged sham-merchant processing

FTC announced a proposed order involving payment processor Humboldt Merchant Services over allegations that it processed payments for merchants that defrauded consumers.

Under the proposed order, Humboldt would pay $12 million.

The proposed order would permanently ban Humboldt from processing payments for merchants with a heightened risk of potential fraud.

The evidence is based on a single FTC press-release summary, and the matter remains framed as a proposed order and allegations.

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