Many businesses in WA state have, or are doing business with Riverside Payments, a credit and debit card payment processing company. Now, the Federal Trade Commission has announced the company has agreed to a $600K lawsuit settlement.

   FTC, WA State, Sued the Company over Alleged Deceptive Practices

  The FTC published information Monday, November 2nd, as did the WA State Attorney General’s Office, that the Vancouver-WA based company has agreed to pay $600K to settle the claims. The original penalty asked for was $32 million, but it was determined the company could not afford it.

The FTC says Riverside, and its equipment-leasing affiliate, Cascade Equipment Leasing LLC, will pay the fine over what they said were deceptive practices.

  The FTC and AG Said Riverside Misled Clients

According to the FTC:

“…the firms deceived small businesses by falsely promising to save them money on payment processing services and making it nearly impossible to cancel despite offering “risk-free” cancellation.”

Riverside and Cascade sell payment processing systems to businesses in WA and across the US, the digital systems utilized to swipe, insert or otherwise process credit and debit card payments. According to the FTC, small business owners and others found it extremely difficult, it not impossible, to cancel their services.

  FTC Also Accused the Company of Deceit

Officials said Riverside told consumers they would save money utilizing their services, but failed to clearly inform them they were automatically being enrolled in renewal plans, which included leasing the processing equipment.

The FTC also says they falsified how much their sales agents made. According to the WA Strate AG’s Office:

“Riverside also allegedly made false and unsubstantiated claims about how much money its sales agents, who work on commission, will earn. Riverside’s ads claimed sales agents could earn between $75,000 and $95,000 a year and that top sales agents can make “100k.” Agents on average made about $3,800 per year.”

The settlement offers Riverside customers a no-risk charge-free opt out period where they can cancel the service, and depending on how long a company used their services, around 300 WA businesses could be eligible for restiution.

  For Business Owners, Here’s More Information

To find out more about this case and how to opt out, click here.  The exact number of WA state Riverside clients is not publicly known, as the company does not release such data.