UK Fintech Paddle will pay $5 million to settle US allegations of unfair payment processing practices.
The firm will also be permanently banned from processing payments for tech-support telemarketers, says the Federal Trade Commission.
The FTC complaint alleged that Paddle processed payments for deceptive tech-support schemes that targeted US consumers, including older adults.
The payments processor was accused of abusing the credit-card system and enabling deceptive foreign operators to access it, costing consumers millions of dollars.
Christopher Mufarrige, director, FTC Bureau of Consumer Protection, says: “The FTC will hold accountable payment companies that knowingly facilitate payments for scammers or look the other way when faced with red flags about their clients’ conduct.”
In a statement, Jimmy Fitzgerald, CEO at Paddle, says: "Paddle serves over 6,000 digital product companies, whose innovative technology collectively brings incredible value to consumers all around the world And whilst we believe that almost all digital product companies are ‘forces for good’, it is sadly a reality that there are some bad faith actors out there.
He adds that for several years, the firm has banned certain categories of tech-support companies from joining Paddle and tthat "this agreement confirms we will continue that policy".
Separately, MoneyGram will pay a $250,000 fine to settle a New York state lawsuit over claims it violated a federal rule designed to make it easier to send remittances.
The settlement comes shortly after the Consumer Financial Protection Bureau withdrew from the civil case amid its ongoing pullback from enforcement activity.