FTC Targets Nuvei Merchant Screening

Single-source brief: The FTC says Nuvei must pay $4.85 million and adopt stronger merchant controls.

What changed

The Federal Trade Commission filed a complaint and final order against Nuvei.

The FTC alleges Nuvei opened and kept accounts for deceptive merchants. The agency says these included tech support scams targeting U.S. consumers.

Nuvei will pay $4.85 million under the proposed order. The FTC says the funds will support consumer redress.

The order also bars unfair or deceptive payment processing practices like those alleged.

New requirements for Nuvei

Nuvei cannot serve certain tech support sellers. This includes sellers using telemarketing or device-security pop-up messages.

Nuvei must screen and monitor current and prospective clients. Enhanced screening applies to certain merchant groups, including outbound telemarketing.

The order also requires added review for existing clients with chargeback rates above stated limits.

Nuvei cannot use false or misleading statements to obtain accounts. It also cannot evade bank or card-network fraud controls.

Scope and open questions

This is a payment-processing enforcement action, not a robotics policy change.

The FTC alleges Nuvei processed more than $30 million for Reimage from 2017 through 2023.

The agency filed the complaint and final order in federal court in Arizona. The FTC says the court will decide the case.

The FTC notice does not state when the order’s requirements take effect.