Riverside Payments Pays $600,000 to Settle FTC Claims Over Misleading Fees

Jessica Albright · 2026-11-04

When you're running a small business, every dollar counts. So when a payment processor promises low rates and then hits you with hidden fees, it's more than just frustrating—it can hurt your bottom line. That's exactly what the Federal Trade Commission (FTC) says Riverside Payments and its affiliates did, and now they're paying $600,000 to settle the allegations. ### What Exactly Happened? The FTC claimed that Riverside Payments misled small businesses about their processing costs. According to the complaint, the company advertised low rates but failed to disclose additional fees, leaving business owners with higher bills than expected. Riverside Payments and its affiliates have agreed to pay $600,000 to resolve these allegations. While they didn't admit wrongdoing, the settlement sends a clear message: transparency matters. ### Why This Matters for Your Business If you accept credit cards, you know how confusing payment processing can be. Rates, fees, and terms can vary widely, and it's easy to get lost in the fine print. This case highlights the importance of doing your homework before signing a contract. Here are a few things to keep in mind: - **Ask for a full fee breakdown.** Don't just look at the advertised rate—ask about monthly fees, statement fees, PCI compliance fees, and any other charges. - **Read the contract carefully.** Look for clauses about rate increases and early termination fees. - **Compare multiple providers.** Don't settle for the first offer you get. Shop around and read reviews. - **Check for complaints.** Search the company's name with terms like "complaints" or "scam" to see what others are saying. ### The Bigger Picture The FTC has been cracking down on deceptive practices in the payments industry. Just last year, they took action against another processor for similar issues. It's part of a broader effort to protect small businesses from unfair and deceptive practices. As FTC Chair Lina Khan said, "Small businesses deserve transparency when it comes to the costs they'll face." ### What Riverside Payments Says In a statement, Riverside Payments said it is pleased to put the matter behind it and remains committed to serving its customers. The company emphasized that it has improved its disclosure practices and is focused on moving forward. Whether you're a current customer or considering their services, it's always wise to stay informed and vigilant. ### Protecting Yourself Ultimately, the best defense is knowledge. Understand what you're signing up for, ask questions, and don't be afraid to walk away if something doesn't feel right. Your business's financial health depends on it. Have you had experiences with payment processors? Share your stories in the comments below—we'd love to hear from you.