Riverside Payments to Pay $600K Over Small Business Fee Deception
The FTC and Washington state allege Riverside Payments hid fees and locked small businesses into auto-renewing contracts despite promising risk-free cancellation.
Payment processor Riverside Payments Inc. and its affiliate Cascade Equipment Leasing LLC have agreed to pay $600,000 to settle federal and state allegations that they systematically misled small businesses about the true costs of their services, the Federal Trade Commission and Washington state announced.
According to the complaint, Riverside Payments falsely promised small business owners they would save money by switching to its payment-processing services, while failing to disclose significant fees and auto-renewing contract terms that made leaving the company extraordinarily difficult. The firms also advertised "risk-free" cancellation options that regulators contend were effectively illusory.
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The action names both Riverside Payments and Cascade Equipment Leasing, as well as the operators behind the two companies, signaling regulators' intent to hold individuals accountable alongside corporate entities when deceptive practices are alleged. The $600,000 resolution covers claims brought jointly by the FTC and Washington state authorities.
The case underscores growing regulatory scrutiny of the payment-processing industry, where small business owners — often lacking dedicated legal or financial staff — can be particularly vulnerable to opaque contract terms and hidden charges. Enforcement actions of this type are designed both to provide restitution and to deter similar conduct across the sector.
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