BlueSnap and its former CEO settled with the Federal Trade Commission (FTC) for knowingly processing payment transactions for deceptive and fraudulent companies.
The mentioned payment company, former CEO Ralph Dangelmaier, and senior vice president Terry Monteith have agreed to turn over more than $10 million to consumers. The firm also promised to stop providing payment transaction processing services for certain high-risk customers.
In a federal court complaint, the FTC charged BlueSnap and its officers with being involved in processing millions of dollars worth of credit card payments for ACRO Services, despite substantial evidence that the company was fraudulent. It is also noted that BlueSnap, Ralph Dangelmaier, and Terry Monteith ignored glaring warnings that the mentioned firm deceived consumers from at least 2019 to 2021.
The FTC also alleges that BlueSnap continued to process payment transactions for ACRO Services despite Visa reports that stated that between 29% and 40% of the company’s relevant operations were disputed as fraudulent. The relevant activity did not stop even after American Express contacted Terry Monteith directly with a request to close down ACRO Services accounts.
Moreover, BlueSnap’s internal fraud monitoring team has informed Ralph Dangelmaier and Terry Monteith that the mentioned firm is defrauding consumers. After that, no action was taken to close down the accounts of ACRO Services.
BlueSnap was also accused of processing payment transactions for other companies involved in fraudulent practices.
As we have reported earlier, Mastercard and Visa Agree to $30 Billion Settlement.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
