Payment Radar
Humboldt Merchant Services to pay $12M under proposed FTC order on high-risk processing
Under a proposed order the FTC filed in the U.S.
Payment RadarOriginal source: Federal Trade Commission · linked publisher media; native reuse rights require confirmation 
What changed
Correction (October 2026): An earlier version said merchants would lose access to Humboldt immediately and that the ban was already in place. The FTC’s order is proposed and has the force of law only when approved and signed by the court.
The FTC says Humboldt Merchant Services will pay $12 million and be permanently banned from processing payments for merchants with a heightened risk of fraud, under a proposed order filed in the U.S. District Court for the Eastern District of Michigan. According to the FTC’s complaint, Humboldt processed payments for more than 1,000 shell merchants that fronted for fraudulent companies, opened those accounts despite red flags and chargeback rates almost 10 times what card brands view as excessive, and moved them onto a lower-risk bank BIN used by an affiliated entity. The proposed order would prohibit Humboldt from credit card laundering, from processing for four categories of merchants including straw companies and merchants on the Mastercard MATCH list, and from tactics to avoid fraud and risk monitoring, including load balancing.
Why a business should care
Payment Radar’s view: the case shows the FTC holding a processor responsible for merchants it knew, or consciously avoided knowing, were fronts for fraud, including tactics such as moving accounts to a lower-risk BIN and load balancing to avoid fraud monitoring. The complaint states allegations.
Who it affects
Humboldt Merchant Services and merchants in the categories named in the proposed order. The order has the force of law only once the court approves and signs it.
What to consider doing
Payment Radar’s view: merchants that process through Humboldt can ask the processor how the proposed order affects their accounts. Merchants in high-risk categories may see closer underwriting from processors generally.
Uncertainty and risks
The order is proposed: the FTC says stipulated orders have the force of law when approved and signed by the District Court judge. The complaint’s statements are allegations.
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