FTC Announces Claims Process for Small Businesses Harmed by Payment Processor First American


The Federal Trade Commission is launching a claims process for small businesses harmed by payment processing company First American Payment Systems’ undisclosed early termination fees.

The agency is mailing notices to 1,137 businesses who were customers of First American between June 2017 and April 2020 and later cancelled their services. Businesses who paid an early termination fee are eligible to request a payment. The deadline to file a claim is May 28, 2024. Eligible businesses can file a claim online at www.ftc.gov/FirstAmerican. Those who have questions or need help filing a claim can call 877-595-0114 or email info@FirstAmericanPaymentSettlement.com. The Commission never requires people to pay money or provide account information to apply for a refund.

The FTC first took action against First American in 2022, alleging that the company failed to disclose early termination fees and made false claims about fees and cost savings to lure merchants, many of whom had limited English proficiency, into using its services. Once merchants were enrolled, the defendants withdrew funds from their accounts without their consent and made it difficult and expensive for them to cancel the service. 

Under the terms of the settlement, First American and two of its sales affiliates were required to return $4.9 million, stop their deception, stop charging existing customers early termination fees, and make it easier for merchants to cancel their services.

The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of refunds in FTC cases. In 2023, FTC actions led to $324 million in refunds to consumers across the country.

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