The Federal Trade Commission (FTC) has reached a settlement with Nuvei, a Canada-based payment processor, requiring the company to pay $4.85 million due to allegations of facilitating merchant fraud. The FTC's complaint states that Nuvei opened and maintained payment processing accounts for merchants engaged in deceptive practices, including tech support scams that defrauded consumers.

According to the FTC, Nuvei processed over $30 million in payments for Reimage, an offshore tech support scam, from 2017 to 2023. The complaint highlights that Nuvei's actions undermined the integrity of the payment system, which is essential for consumer trust and competition.

The FTC's enforcement action aims to ensure that payment systems operate free from fraud. The proposed order prohibits Nuvei from providing payment services to telemarketers selling tech support products and requires the company to implement robust screening practices for its clients, particularly those in high-risk categories.

Nuvei's U.S. subsidiary, Nuvei Technologies Inc., is also implicated in maintaining accounts for merchants making false earnings claims and impersonating government tax authorities. The FTC has previously taken action against these deceptive practices, reinforcing its commitment to consumer protection.