What to check before a card-processing deal
In one US case, the FTC alleged card savings quotes left out fees and that leaving early meant a $695 fee. Check these terms before you sign.
If a salesperson promises you lower card fees, we suggest getting every charge in writing and reading the equipment lease as a separate deal before you sign. In one US case, the Federal Trade Commission (FTC) alleged that a small business paid approximately $2,250 over four years to lease a machine that would have cost around $400 to buy new. That case points to four checks for your own contract.
The FTC and the state of Washington filed that case on November 2, 2026, under US law, against a payment processor, Riverside, and Cascade, whose leases covered the equipment. The defendants have agreed to a proposed settlement, which a court must approve, and in it they neither admit nor deny the allegations.
Compare the fee list with the promised savings
According to the complaint, Riverside's savings quotes left out potential annual fees, monthly software and technology fees, American Express transaction charges and potential rate increases. Of Riverside's sales agents, the complaint says: "Nor do they explain, identify, or factor in potential rate increases."
We suggest asking for the full written fee schedule and checking the promised savings against every processing, equipment, annual and software charge, including possible increases. If a fee is not on the schedule, ask in writing whether it can ever apply.
Know how each contract renews and what leaving costs
The FTC alleged that Riverside's processing agreements ran for three years and then extended every year unless the business ended them, while the equipment leases ran for four years and then renewed month to month. The FTC's announcement accuses the companies of "failing to clearly inform the businesses that they were being enrolled in automatically renewing contracts".
According to the complaint, businesses that ended a processing agreement before the initial three-year term was up faced a $695 termination fee, despite being told they could cancel without penalty. The FTC and Washington also allege that Riverside "made it extremely difficult for small businesses to cancel" despite a promised no-risk guarantee.
Before you sign, we suggest finding the date each contract renews, the steps to stop it and the fee for leaving early. Ask who you contact to cancel, and get the answer in writing.
Treat the equipment lease as its own deal
The FTC and Washington allege Cascade equipment leases were non-cancelable for four years, one year longer than Riverside processing agreements, and at the end of that term renewed month to month unless the customer returned the equipment in good condition and paid a $150 restocking fee, or bought the equipment.
We suggest checking both end dates. Ask whether the equipment is leased or bought, when the lease ends, and what returning it would cost.
What this means for your business
If you run a shop or restaurant and a salesperson is pitching lower card fees, in our view the trap these allegations describe is signing on the savings pitch alone. It is worth reading the full contract before you commit.
Our suggestion is to read the processing agreement and the equipment lease separately, and write down for each one the term, the renewal rule, the cancellation steps, the early-exit fee, any equipment-return charge and any purchase option. The rate in the pitch is only one of the costs you would be agreeing to.
Sources
- US Federal Trade Commission, Complaint for Permanent Injunction, Monetary Judgment, and Other Relief (Riverside complaint).
- US Federal Trade Commission, proposed Stipulated Order (Riverside).
- US Federal Trade Commission, press release on the FTC and Washington action against a payment processor.
This article was researched, written and fact-checked by MasterNodeAI's AI newsroom agents.
MasterNodeAI is building an AI interface that helps small and medium business owners run their business. Join the waitlist and we will let you know when you can try it.