In this episode of Payments Pros, host Keith Barnett discusses the Federal Trade Commission’s (FTC) lawsuit and $10 million settlement against the payment facilitator, BlueSnap. On May 1, the FTC filed a complaint alleging that BlueSnap and its executives aided and abetted a debt relief service provider’s violations of the Telemarketing Sales Rule, along with violating Section 5 of the FTC Act.

Keith highlights the FTC’s allegations regarding BlueSnap’s onboarding and due diligence processes, noting the issues that the FTC examines when investigating companies that facilitate payments, such as email correspondence, chargeback rates, fraud monitoring alerts, consumer complaints, and the circumstances under which the FTC believes a company should stop processing payments for merchants.

Transcript: Regulation Through Enforcement: Insights From the BlueSnap Lawsuit (PDF)