# Nuvei Case Turns Chargebacks Into FTC Warning Sign

> FTC cases expose how merchant approval practices risk fraud and chargebacks
- Title: Nuvei Case Turns Chargebacks Into FTC Warning Sign · Pymnts
- Summary: FTC cases expose how merchant approval practices risk fraud and chargebacks Processors must verify merchant ownership and history to prevent shell companies…
- Keywords: nuvei, ftc, chargebacks, merchant approval, fraud prevention, payment processing, shell companies, consumer redress, business, finance, Case, Turns
- Source: Pymnts — https://pymnts.com/legal/2026/nuvei-case-turns-chargebacks-into-an-ftc-warning-sign
- Author: PYMNTS
- Published: 2026-09-22T23:27:15+00:00
- Read time: 1 min
- Topics: nuvei, ftc, chargebacks, merchant approval, fraud prevention, payment processing, shell companies, consumer redress, business, finance
## FTC Targets Merchant Approval
Two FTC cases show processors face scrutiny over merchant screening practices
## Nuvei's Enhanced Screening
Nuvei requires five months of chargeback data and six months of processing statements for high-risk merchants
## Humboldt's Shell Merchants
Humboldt processed payments for shell companies generating chargebacks at 10 times card brands' excessive rates
## FTC Settlements
Nuvei pays $4.85 million for consumer redress while Humboldt pays $12 million
## Fraud Attempts Rise
57% of payment industry executives report increased fraud attempts over the past year
## Verification Becomes Ongoing
67.7% of companies use digital identity verification for account opening and fraud tracking
## Early Fraud Detection
81% of companies detecting payment issues before settlement use instant bank account verification
## Key takeaway

Processors must verify merchant ownership and history to prevent shell companies and fraud