FTC Warns Payment Giants Against Political Debanking

Debanking refers to financial institutions or payment providers restricting accounts and transactions because of customers’ political or religious views or lawful business activities. U.S. President Donald Trump signed an executive order on August 7, 2025, aimed at curbing politicized or unlawful denial of financial services. Because Visa, Mastercard and others control critical payment networks, the policy also extends to nonbank payment infrastructure.

Federal Trade Commission Chair Andrew N. Ferguson sent separate letters to the CEOs of PayPal, Stripe, Visa and Mastercard on March 26, 2026. He warned that disabling customers or helping partner institutions block services could violate the FTC Act if such actions breach terms of service or consumers’ reasonable expectations, potentially prompting investigations and enforcement action. No fine was announced.