REGULATION · US
FTC enforcement action against Nuvei signals tighter chargeback compliance and merchant vetting rules
The FTC has filed cases against payment processor Nuvei alleging it opened merchant accounts for high-risk vendors knowing they posed chargeback and fraud exposure. The agency views merchant onboarding due diligence as a core compliance obligation, not a business discretion.
WHY IT MATTERS
FTC enforcement redefines acquiring bank and processor liability. Firms must now audit merchant vetting workflows and algorithmic risk scoring. Non-compliance risks enforcement action, customer refunds, and license suspension. This will force rapid compliance upgrades in merchant KYC/KYB automation.
Source: PYMNTS · 2026-09-22