BlueSnap Agrees To Pay $10 Million To Settle With The FTC
- Economy
- May 14, 2024
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BlueSnap, a payment processing company, has agreed to pay $10 million in settlement to the Federal Trade Commission. The company was charged after it was caught processing payments for fraudulent and deceptive companies. The charges have thrown BlueSnap into the spotlight.
According to the report, BlueSnap former Senior Vice President Terry Monteith and Chief Executive Officer, Ralph Dangelmaier, are also involved in the settlement. The Federal Trade Commission said BlueSnap and its bosses let fraud happen by handling lots of credit card payments for ACRO Services, even though they knew it was shady.
BlueSnap Ignored The FTC Signs And Warnings
The Commission filed a case in federal court stating that BlueSnap and its leaders overlooked obvious signs of cheating by ACRO Services. This went on from at least 2019 to 2021. They were given warnings and proof, like reports from Visa showing a lot of disputed charges. However, they did not heed those warnings.
BlueSnap did not stop processing payments for ACRO Services. Reports from BlueSnap’s team showed more evidence of ACRO’s dishonest deeds. But they didn’t close the accounts or do anything about it.
The director of the Federal Trade Commission’s Bureau of Consumer Protection, Samuel Levine, criticized these actions, saying that companies like BlueSnap that knowingly handle payments for scammers are breaking the law and making it simpler for scammers to deceive consumers.
BlueSnap, Monteith, and Dangelmaier have responded to the agreement. They have decided to stop offering its payment service to certain risky clients. They’ve also agreed to provide a notable $10 million for those customers affected by the spoken issue. This will teach a lesson to those companies, especially in the FinTech field to obey rules and conduct ethical business well.
FinTech Firms Face Major Regulatory Issues
The charges and payments show that many companies, particularly those that offer processing payment services in the FinTech industry, are faced with regulatory issues.
It also tells how vital it is for companies to follow thorough diligence procedures and compliance measures so they won’t indulge in fraudulent activities.
BlueSnap boasts of a network comprising more than 300 employees located in seven different locations globally. The company assists many customers in various industries and is trusted by prominent global brands like Ford, Benevity, Monday, and others.
The company’s optimization tools enable users to reduce operation costs. Its Intelligent Payment Routing limits decline and maximizes progress.
Thanks to secure tokenization and powerful encryption, businesses can enjoy the best payment method available. BlueSnap’s worldwide payments also decrease cart abandonment and widen the range of accepted currencies.
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