Payment Radar
FTC Charges Nuvei with Facilitating Merchant Fraud; $4.85M Settlement and New Screening Requirements
The FTC charged Nuvei with facilitating merchant fraud, including processing over $30 million for a tech support scam (Reimage) and maintaining accounts for merchants with false earnings claims, impersonating tax authorities, and high chargeback rates.
Payment RadarOriginal source: Federal Trade Commission · linked publisher media; native reuse rights require confirmation 
What changed
Correction (October 2026): An earlier version said the order was subject to public comment. The FTC filed the complaint and a stipulated final order in federal court in Arizona; no public comment period applies. It was also dated September 6, 2026; the FTC announced the settlement on September 4, 2026.
The US Federal Trade Commission (FTC: The US Federal Trade Commission, which enforces consumer protection and competition law including payment-related rules.) has charged Nuvei with facilitating merchant fraud. The agency’s complaint details how the payment processor handled over $30 million for a tech support scam and maintained accounts for merchants making false earnings claims, impersonating tax authorities, and operating with high chargeback rates. A chargeback: A forced reversal of a card sale initiated by the cardholder’s issuing bank, governed by network rules from Visa, Mastercard, Amex, or Discover. rate is a key metric in these enforcement actions. As part of the resolution, Nuvei will pay $4.85 million for consumer redress and must comply with a stipulated order that bans it from processing tech support telemarketing and pop-up sales. The order also prohibits false statements to obtain accounts and requires enhanced screening and monitoring of clients, particularly those with high chargeback rates. This marks a direct shift in how Nuvei must vet and manage its merchant base to avoid facilitating fraud.
Why a business should care
This enforcement action directly alters the acceptance criteria and risk monitoring standards for Nuvei’s merchant network. For businesses using Nuvei, the immediate implication is stricter compliance scrutiny. The payment processor is now legally bound to ban specific high-risk sales models, such as tech support telemarketing, and must actively monitor and screen clients to prevent fraud. Merchants in related high-risk categories, such as business opportunities or general tech support, may face tighter underwriting, higher fees, or account termination if they do not meet the new enhanced screening standards. The settlement underscores the regulatory pressure on payment processors to police their merchant bases, meaning that operational and marketing practices that previously passed review may now trigger deeper investigations or rejection.
Who it affects
The primary impact falls on Nuvei merchants, especially those operating in tech support, business opportunities, and other high-risk verticals. These merchants will encounter stricter vetting processes and must ensure their chargeback rates remain low to avoid being flagged. Consumers who were victims of the scams facilitated by Nuvei are also directly affected by the consumer redress component of the settlement. Additionally, payment processors and fraud prevention teams across the industry will need to adjust their risk models and compliance protocols to align with the heightened scrutiny now mandated by the FTC.
What to consider doing
If you are a Nuvei merchant operating in a high-risk category, pull your current merchant agreement and compliance checklist this week to verify that your business model, marketing claims, and chargeback management practices align with standard industry compliance. Contact your account manager or Nuvei’s merchant support team to ask specifically about any updated screening requirements or policy changes related to your vertical.
Uncertainty and risks
The FTC filed the complaint and a stipulated final order in the U.S. District Court for the District of Arizona; the complaint’s statements are allegations. There is a risk that Nuvei may proactively tighten its risk policies across all merchant categories to ensure full compliance, potentially affecting businesses that are not directly involved in the cited fraud. Merchants relying on telemarketing or pop-up sales for tech support should be aware that this specific channel is now explicitly banned for Nuvei, which could disrupt existing revenue streams if not addressed immediately.
Comments