July 29, 2022

First American Payment Systems—a merchant payment processing provider—and two sales affiliates have been ordered to return $4.9 million to businesses harmed by FAPS’ hidden terms, surprise exit fees, and zombie charges. FAPS’ preyed mostly on merchants with limited English proficiency, promising low costs and an easy exit, but hit them with surprise fees and illegal charges when the customers tried to get out. In addition to the monetary penalty, FAPS is required to stop misleading customers about fees and pricing, stop unauthorized bank withdrawals, make service cancellation easier, and stop charging early termination fees. FTC

Tagged in: Financial and Investment Fraud, Misrepresentations,