The Green Sheet Online Edition
September 28, 2026 • 26:09:02
News Briefs
Nuvei to pay $4.85 million in FTC merchant-screening case <- click to read full story
Nuvei agreed to pay $4.85 million to settle Federal Trade Commission allegations that it processed payments for merchants it knew or should have known were engaged in deceptive conduct.
The FTC alleged Nuvei processed more than $30 million for offshore tech support operation Reimage and maintained accounts for other high-risk merchants despite fraud and chargeback concerns. The proposed order restricts Nuvei from serving certain tech support providers and merchants on Mastercard's high-risk list and requires enhanced screening and monitoring of prospective and existing clients.
Nuvei also must investigate clients whose chargeback rates exceed specified thresholds. FTC officials emphasized that processors are not automatically liable for merchant misconduct but may face enforcement when they know, should know or consciously avoid knowing that merchants are engaged in unlawful conduct through payment processing services.
Alabama limits surcharging as Australia moves to end it <- click to read full story
Card surcharge rules are changing in Alabama and Australia. Effective Sept. 1, 2026, Alabama requires sales tax to be calculated on a purchase before a credit card surcharge or convenience fee is added, departing from the approach used in most states.
Industry observers said the change could affect merchants and payments providers supporting surcharge programs. Australia, meanwhile, will eliminate card surcharging Oct. 1 after regulators concluded the practice no longer effectively encourages consumers to choose lower-cost payment methods.
The Reserve Bank of Australia estimates consumers pay AUD $1.6 billion to $1.8 billion annually in surcharges. Regulators are also reducing interchange caps, including cutting the consumer credit card cap from 80 to 30 basis points, and introducing greater transparency around merchant card processing costs.
TabaPay seeks bank charter through Transact Bank acquisition <- click to read full story
Denver-based TabaPay plans to acquire Transact Bank, N.A., combining banking and payments capabilities as the money movement platform expands its services. The proposed acquisition, subject to regulatory approval, is expected to close in the fourth quarter of 2026, after which the OCC-chartered, FDIC-insured bank would become TabaBank N.A. TabaPay revealed the deal alongside $155 million in strategic growth financing led by FTV Capital.
TabaBank would complement TabaPay's existing network of more than 20 partner banks while providing additional redundancy and supporting RTP, FedNow, ACH, wires and card sponsorship. TabaPay said the bank could also strengthen sponsorship capabilities for merchants, ISOs, payfacs and other platforms. The company expects to process more than $100 billion in payments volume this year.
FTC follows Nuvei case with $12 million Humboldt settlement <- click to read full story
Humboldt Merchant Services agreed to pay $12 million and accept business restrictions to settle Federal Trade Commission allegations that it knowingly facilitated payment processing for more than 1,000 sham merchants linked to unauthorized billing schemes. The FTC alleged the registered ISO opened accounts for shell companies despite warning signs, including unusually high chargeback rates, and helped merchants evade card-network monitoring through practices including load balancing. Humboldt also allegedly moved accounts to a lower-risk bank identification number to increase transaction approvals.
Under the settlement, Humboldt is barred from processing for straw companies, certain merchants on Mastercard's MATCH list and merchants subject to law enforcement action. The order also prohibits credit card laundering and efforts to evade fraud monitoring and risk controls.
Consumer trust in AI shopping? A mixed bag <- click to read full story
A Visa survey found 72 percent of U.S. consumers have used an AI assistant for shopping, but only 23 percent trust generative AI to handle payments on their behalf. Trust increased when established payment brands were involved, with 61 percent of respondents saying they would trust Visa to handle agentic transactions. That figure rose to 68 percent among consumers ages 18 to 34 and 71 percent among frequent AI users.
The Harris Poll survey of 2,065 U.S. adults was conducted May 26 to 28, 2026. Visa said the findings suggest consumers distinguish between AI tools used for product discovery and brands trusted to complete transactions. The company expects agentic commerce will extend beyond consumer shopping into business applications including procurement, supplier onboarding, invoicing, machine-to-machine payments and embedded commerce. 
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