The Federal Trade Commission (FTC) is distributing over $2.6 million in refunds to small businesses affected by the practices of First American Payment Systems. This action follows a lawsuit filed by the FTC in July 2022, where First American was accused of misleading small businesses with hidden terms, unexpected exit fees, and unauthorized charges.

According to the FTC, First American allegedly made false promises regarding fees and cost savings to attract merchants. Once enrolled, these merchants faced unauthorized withdrawals from their accounts and encountered difficulties when trying to cancel services. The company settled the lawsuit by agreeing to refund small businesses and committed to cease deceptive practices concerning their fees while simplifying service cancellations.

Refund checks are being sent to 5,588 small businesses, which should be cashed within 90 days as noted on the checks. Additionally, claim forms are being mailed to 16,181 businesses that signed up with First American between June 2017 and April 2020 but later canceled their enrollment. Those charged an early termination fee may apply for a refund by May 7, 2025.

Further details about the refund process can be found at ftc.gov/FirstAmerican or through JND Legal Administration at 877-595-0114. The FTC emphasizes that it never requires payment or account information for issuing refunds.

The agency's interactive dashboards provide detailed state-by-state data on refunds related to FTC cases. In 2024 alone, FTC efforts resulted in $285 million in consumer refunds nationwide.

The FTC is dedicated to fostering competition and safeguarding consumers through education and protection initiatives. It advises against responding to demands for money transfers or prize promises linked to its operations. For more consumer information or reporting frauds and scams, visit consumer.ftc.gov or ReportFraud.ftc.gov.