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Payments processor BlueSnap, along with its former CEO and senior vice president, has reached a $10 million settlement with the Federal Trade Commission (FTC) for knowingly facilitating payments for deceptive and fraudulent companies.
As part of the settlement, BlueSnap, ex-CEO Ralph Dangelmaier, and SVP Terry Monteith have agreed to provide $10 million for consumer restitution and to cease processing payments for specific high-risk clients.
The FTC’s federal court complaint alleges that BlueSnap and its executives knowingly processed millions of dollars in credit card payments for ACRO Services despite substantial evidence indicating fraudulent activity within the company.
According to the complaint, BlueSnap, Dangelmaier, and Monteith ignored clear indications that ACRO Services was engaged in consumer fraud from 2019 to 2021. Despite receiving reports from Visa showing that a significant portion of ACRO’s charges were disputed as fraudulent (ranging between 29% and 40%), and even after direct contact from American Express urging account closure, BlueSnap continued to process payments for ACRO.
Furthermore, BlueSnap’s internal fraud monitoring team reportedly informed both Dangelmaier and Monteith of ACRO’s fraudulent activities, yet no action was taken to terminate the company’s accounts.
The FTC also accuses BlueSnap of processing payments for other companies implicated in fraudulent activities.
Samuel Levine, Director of the FTC Bureau of Consumer Protection, condemns the actions of companies like BlueSnap, stating, “Companies like BlueSnap that knowingly process payments for scammers are breaking the law and making it easier to cheat consumers.”
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