FTC Sends More Than $2.6 Million in Refunds to Small Businesses Harmed by Payment Processor First American Payment Systems

The Federal Trade Commission is sending more than $2.6 million in refunds to small businesses harmed by payment processor First American Payment Systems.

The FTC filed a lawsuit in July 2022 against First American, charging the company with trapping small businesses with hidden terms, surprise exit fees, and zombie charges. The FTC alleged the company made false claims about fees and cost savings to lure merchants. 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. The defendants settled the lawsuit with the FTC by paying money to refund small businesses. They also agreed to stop misleading businesses about their fees and make it easier for businesses to cancel their services.

The FTC is sending checks to 5,588 small businesses. Recipients should cash their checks within 90 days, as indicated on the check.

The agency is also mailing claim forms to 16,181 businesses who enrolled with First American Payment Systems between June 2017 and April 2020 and later canceled their enrollment. Businesses who were charged an early termination fee may apply for a refund. The deadline to submit a claim is May 7, 2025.

More information about this refund and claims process is available at ftc.gov/FirstAmerican or by calling the refund administrator, JND Legal Administration, 877-595-0114. The Commission never requires people to pay money or provide account information to get a refund.

The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of refunds in FTC cases. In 2024, FTC actions led to $285 million in refunds to consumers across the country.