FTC Approves Administrative Settlement With Payment Processor, Electronic Payment Systems

Yesterday, the Federal Trade Commission (FTC) moved to dismiss its long-running enforcement action against Electronic Payment Solutions (EPS) pending in the District of Arizona after the Commission voted 4-0 to approve a final settlement with EPS and certain of its owners. The case against EPS, a third-party payment processor, is just the most recent example of the FTC's heightened focus on holding financial intermediaries responsible for failing to police the actions of their merchant customers.

The FTC initially filed the federal action in 2017, requesting equitable monetary relief and injunctive relief under Section 13(b). After the Supreme Court issued its decision in AMG, the district court denied the FTC's request for a permanent injunction and equitable monetary relief. The FTC then proceeded to file an administrative complaint against EPS, alleging unfair credit card laundering under Section 5 of the FTC Act and Assisting and Facilitating Telemarketing Sales