Nuvei To Pay $4.85 Million Over FTC Fraud Screening Charges

Global payment processor Nuvei has agreed to pay $4.85 million and overhaul its merchant screening procedures to settle Federal Trade Commission charges that the company knowingly processed transactions for merchants engaged in fraudulent activity.

According to the FTC, Nuvei and its subsidiaries opened and maintained payment processing accounts for merchants the company knew, or should have known, were operating deceptive or illegal schemes. Regulators allege the firm continued to move money for these merchants even after warning signs emerged, including high rates of consumer complaints, chargebacks, and other red flags typically associated with fraudulent business practices.

Payment processors like Nuvei act as intermediaries between merchants and the banking system, enabling businesses to accept credit and debit card payments from customers. Because of this gatekeeper role, processors are expected to vet merchants before granting them access to payment networks and to monitor accounts on an ongoing basis for signs of misconduct. The FTC’s complaint contends Nuvei fell short of these obligations, allowing bad actors to tap into the broader financial system and harm consumers.

Beyond the monetary settlement, Nuvei has agreed to implement a comprehensive merchant screening and monitoring program going forward. That program is expected to include enhanced due diligence before onboarding new merchants, ongoing transaction monitoring designed to flag suspicious activity, and stronger internal controls to ensure the company can quickly identify and cut off processing relationships with merchants suspected of fraud. The settlement also includes recordkeeping and compliance reporting requirements intended to give regulators visibility into whether the company is meeting its new obligations.

The case fits into a broader pattern of FTC enforcement against payment processors and financial intermediaries that the agency views as enabling consumer fraud, even when the processors themselves are not the ones directly deceiving consumers. Over the past decade, the agency has pursued similar actions against processors and independent sales organizations accused of turning a blind eye to merchants running telemarketing scams, deceptive subscription services, and other schemes that rely on access to card networks to collect payments from victims.

Industry observers note that payment processors occupy a unique position of leverage in the fight against consumer fraud, since cutting off a fraudulent merchant’s ability to process payments can shut down a scheme far more effectively than pursuing the merchant alone. Regulators have increasingly signaled that processors cannot simply collect fees while ignoring obvious indicators of fraud, and that failure to act on red flags can itself trigger liability. This approach places added pressure on payment companies to invest in compliance infrastructure, including automated fraud detection tools, merchant background checks, and dedicated risk teams tasked with reviewing high-risk accounts.

For Nuvei, a company that processes payments for merchants across multiple countries and industries, the settlement underscores the reputational and financial risks tied to lax merchant oversight. The $4.85 million penalty, while modest relative to the scale of global payment processing revenues, signals that regulators are prepared to hold processors financially accountable even in cases where the company itself was not the primary fraudster.

The settlement still requires the mandated screening reforms to be implemented and maintained, with compliance subject to ongoing oversight. Details of the FTC’s findings and the terms of the agreement were outlined in a press release from the agency, according to the Federal Trade Commission.

The case adds to a growing list of enforcement actions aimed at tightening accountability across the payments industry, as regulators continue scrutinizing the intermediaries that keep online commerce, and its fraudulent corners, running.