The First Data Merchant Services settlement involves $40.3 million in settlement fees and other penalties, after the company agreed to settle allegations from the Federal Trade Commission. In this lawsuit, the FTC alleged that the payment processing giant laundered credit card transactions to benefit scammers, ignoring warnings from its competitors. In particular, the settlement claims that Chi “Vincent” Ko, an independent sales agent for the company, had been laundering payments for clients who broke the law.
While First Data Merchant Services is not accredited with the Better Business Bureau (BBB), its profile page on the BBB website contains hundreds of complaints.
These complaints range from allegations of fraud to general processing company issues. They include high fees, unauthorized work outside of the contract, and poor customer service. Further, a review of the First Data Merchant Services website found more than 400 negative reviews. The lawsuits are being filed by merchants who were ripped off by the company.
This case was filed against Banc of America Merchant Services, a joint venture between First Data and Bank of America. This company provides merchant services and a point-of-sale card reader called Clover. This reader accepts credit cards, checks, mobile wallets, and other forms of payment. According to the plaintiff’s attorneys, the defendants require every merchant to comply with the PCI data security standards, a set of rules created by credit card companies to prevent security breaches affecting credit card information.
The complaint also alleges that First Data pushed merchants to lease payment equipment and enticed them to enter into a contract with an unaccountable term.
Moreover, the plaintiffs allege that the defendants systematically deceptively imposed charges to lure consumers into leasing POS terminals. In addition, the company denied its customers’ right to cancel the POS terminal lease. In this way, the settlement amounts to $40 million, which will be distributed among the victims.
The settlement includes the charges that the defendants violated the PCI data security standards of its merchant customers. In addition, the settlement states that the defendants violated the law. For example, First Data required a merchant to comply with the PCI DSS to process payments for a scam artist. Further, the defendants did not disclose that the payment processor was knowingly converting money from its clients. The FTC’s complaint is based on an analysis of the facts presented in the lawsuit.
The suit alleges that the First Data company pushed merchants to lease payment equipment and, as a result, they ended up spending millions of dollars on the devices.
Furthermore, the merchants were unable to cancel the lease and were obligated to pay fees to the FTC. The settlement is a significant victory for the plaintiffs. The settlement is a major victory for the FTC and the companies. In the future, the company will have to face a lawsuit for this illegal activity.
The settlement does not include the company’s failure to comply with the FTC’s rules. The lawsuit claims that First Data pushed merchants into lease contracts by misleading them with false information. The settlement also argues that First Data’s actions were illegal, and that the company hid their profits. The case further asserts that First Data failed to disclose information in its contracts. It is not clear what steps the plaintiffs took to resolve the lawsuit.
The FTC has alleged that Ko and First Data violated the Fair Trade Commission’s antitrust laws by processing payments for a fraudulent business.
The FTC’s complaint also alleges that the companies allowed dishonest merchants to use their services. This lawsuit was filed in December 2017 and subsequently settled. While the settlement was not a victory for Ko, it is a victory for the company. The company agreed to settle the case, which was favorable to the FTC.
According to the complaint, the defendants violated the Fair Trade Commission’s antitrust laws by forcing merchants to lease payment equipment. Those practices resulted in a massive loss of business. The settlement was largely based on the FTC’s findings that the payment processing services did not follow these federal antitrust laws. However, the complaint also alleges that First Data made false statements to its customers. This alleged misconduct led to a $20 million settlement.