Payment Processor Riverside to Pay $600,000 Over Promised Savings

Riverside Payments, its equipment-leasing affiliate Cascade Equipment Leasing and their owners will pay $600,000 to resolve allegations by the Federal Trade Commission and Washington state that they deceived small businesses, the FTC said November 2. The complaint alleges Riverside promised savings of 40 to 60 percent on card processing, while businesses that switched typically paid more, were enrolled in auto-renewing multiyear contracts and equipment leases, and found it nearly impossible to cancel despite a promise of risk-free cancellation. Under the proposed order, affected businesses can cancel their processing agreements without a termination penalty. It follows last week's FTC suit against restaurant processor Toast; before switching processors, ask for the full fee schedule, contract length, renewal terms and cancellation costs in writing.