Nuvei Agrees to Pay $4.9 Million to Settle FTC Case
Nuvei provides digital payment-processing services that allow merchants to accept and move customer funds. The US Federal Trade Commission alleged that the company processed payments for merchants engaged in fraudulent activity, putting its merchant-screening practices under scrutiny. The case underscores how payment companies can become a critical conduit for consumer harm when onboarding, monitoring and risk controls fail to identify problematic businesses.
Under a settlement announced on September 9, 2026, Nuvei agreed to pay $4.9 million to resolve the FTC’s lawsuit over its processing services and merchant-review practices. The agreement brings the regulator’s investigation of that part of Nuvei’s business to a close. It also reinforces regulatory expectations that payment processors conduct effective due diligence and monitor merchants for signs of fraud.
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The history behind this eventHumboldt to Pay $12 Million, Exit High-Risk Merchant Processing
Payment processors serve as gatekeepers between merchants, banks and card networks, making their screening controls a key defense against unauthorized billing. The Federal Trade Commission alleged that Humboldt Merchant Services knowingly, or deliberately, overlooked warning signs while processing transactions for more than 1,000 shell merchants used as fronts or pass-throughs for fraudulent businesses. Some accounts generated chargeback rates nearly 10 times the level card brands consider excessive.
The FTC said on Sept. 8, 2026, that Humboldt agreed to pay $12 million for consumer redress to settle the lawsuit. The proposed order would permanently bar the company from processing payments for straw companies, merchants placed on Mastercard’s MATCH list for reasons including fraud or laundering, and other specified high-risk businesses. The commission approved the filing by a 2-0 vote and submitted the proposed order to the U.S. District Court for the Eastern District of Michigan.
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