FTC order names the e-commerce merchant profile processors must refuse
Humboldt Merchant Services will pay $12 million to settle charges it processed payments for sham merchants. The order bars it from serving online sellers that use a mailbox-only address and either bill on a negative option, are new, or have no processing history.
- Settlement$12 million
- Commission vote2-0
What the document says
Matched to source. Humboldt pays $12 million and is permanently banned from processing for higher-risk merchants.
Matched to source. The order bars processing for e-commerce businesses with a mailbox-only address that use negative option billing, are new, or lack processing history.
Matched to source. Merchants on Mastercard's MATCH list for chargebacks, laundering, or fraud are also excluded.
Matched to source. The sham merchants ran chargebacks at almost ten times the card brands' excessive threshold.
Matched to source. Spreading volume across accounts to dodge risk monitoring is prohibited.