Payment processor Nuvei will pay $4.85 million and overhaul how it vets merchants to settle Federal Trade Commission charges that it helped process payments for tech support scams and other fraudulent schemes. The proposed settlement, announced this week, names Canada-based Nuvei Corporation and several subsidiaries, including Nuvei International Group Limited, Nuvei Limited, SafeCharge Digital Limited, and Nuvei Technologies Inc.
The FTC alleges that Nuvei furnished payment processing accounts through a Cyprus-based acquiring bank, letting overseas schemes take credit card payments from U.S. cardholders. The agency says Nuvei's U.S. subsidiary opened accounts for business opportunity sellers accused of baseless earnings claims, including DK Automation; merchants that posed as tax authorities, including American Tax Service; and merchants that other processors or banks had cut off over chargebacks or fraud. The FTC sued DK Automation in November 2022 and American Tax Service in October 2025.
The FTC also notes it sued Reimage operators in 2024 and separately sued payment processor Paddle last year for facilitating Reimage. The complaint charges Nuvei with unfair practices violating the FTC Act and with assisting deceptive telemarketers.
Under the proposed order, Nuvei is banned from providing payment services for tech support telemarketing, including pop-up messages about computer security or performance issues. It also prohibits Nuvei from making false statements to obtain merchant accounts and from using tactics to dodge fraud or risk monitoring programs. The company must screen and monitor existing and prospective clients, with enhanced screening for those whose chargeback rates exceed order limits.
The settlement money will go toward consumer redress. The complaint was filed in the U.S. District Court for the District of Arizona, and the Commission voted 2-0 to approve it. Chairman Andrew N. Ferguson and Commissioner Mark R. Meador issued a joint statement. Lead attorneys were Russell Deitch and Sung W. Kim.
Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection, said, "Today's action underscores the Commission's commitment to ensuring that our payments system operates free of fraud."
