# FTC settles with payment processor, sets 'knowledge standard' for Section 5 liability

Attorney advertising. Brief by Lou Schwartz, Schwartz & Associates, PC, Atlanta, Georgia. Published 2026-10-15; updated 2026-10-15. Responsible attorney: Lou Schwartz. Canonical: https://www.snalawyers.com/insights/ftc-settles-with-payment-processor-sets-knowledge-standard-for-section

The FTC announced a settlement with a payment processor and four affiliated entities, alleging the companies knowingly enabled deceptive merchants, including foreign tech-support operations, to access the U.S. card-payment system in violation of the FTC Act and the Telemarketing Sales Rule. The settlement includes a $4.85 million monetary judgment. Separately, FTC Chairman Andrew Ferguson and Commissioner Mark Meador issued a joint statement articulating a knowledge standard for unfair payment-processing claims that includes actual knowledge, constructive knowledge, and conscious avoidance. The allegations have not been proven in court beyond the settlement terms.

**Why it matters.** The articulated knowledge standard could shape both future FTC enforcement and private claims against payment processors accused of facilitating deceptive merchant conduct.

## Sources

1. [FTC payment processor settlement (natlawreview.com)](https://natlawreview.com/article/ftc-announces-settlement-and-articulates-knowledge-standard-payment-processor)

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