Merchant Processing Inc.
The FTC alleged that Merchant Processing Inc. and other defendants falsely promised small businesses lower card-processing costs and equipment lease buyouts while concealing fees and contract terms. The FTC later mailed approximately $345,000 in refunds.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- Merchant Processing, Inc., Vequity Financial Group, Inc., Direct Merchant Processing, Inc., PPI Services Inc., et al. (FTC case 052-3162, 2011)
- Jurisdictions
- United States (federal)
Card-processing claims led to merchant refunds
The Federal Trade Commission identified Merchant Processing Inc. as one of the companies in an operation that provided debit and credit card processing services to small businesses. The FTC alleged that the defendants promised merchants savings of hundreds to thousands of dollars a year by offering lower processing rates.
The agency also alleged that the defendants promised to buy out merchants’ equipment leases, failed to disclose fees, and concealed pages of fine print until after contracts had been signed. The supplied release names Aaron Lee Rian, Karely McCarthy, also known as Karly Speelman, Merchant Processing Inc., Direct Merchant Processing Inc., Vequity Financial Group Inc., and PPI Services Inc.
The release says settlements with Rian and McCarthy banned them from marketing card-processing goods or services for sale or lease. Those settlements also required the sale of certain assets to fund refunds. The FTC reported that it was returning approximately $345,000 to 100 merchants. Individual payments ranged from about $100 to more than $25,000, depending on what each merchant had paid.
What is not established
The supplied release does not state that Merchant Processing Inc. admitted the allegations. It also does not give an exact consumer-loss total or an amount that the company itself was ordered to pay.
Sources
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- Enforcement action September 30, 2011
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First recorded September 30, 2011 · Last updated September 30, 2011