Business ProfileforElectronic Payment Systems, LLC

On March 9, 2018, the Federal Trade Commission filed a first amended complaint for permanent injunction and other equitable relief.  In this amended complaint, Electronic Payment Systems, LLC. is separated into its own group of defendants.  It is alleged that Electronic Payment Systems engaged in credit card laundering activities, hired a sales agent with a criminal background, approved fraudulent merchant accounts, deliberately concealed high risk telemarketing activity, and knowingly engaged in practices intended to deceive auditors, law enforcement and credit card companies.  This matter is pending.

On August 7, 2017, the Federal Trade Commission filed a Complaint of Permanent Injunction and Other Equitable Relief against Electronic Payment Systems - an Independent Sales Organization (ISO), sales agents, and their principals of violating the FTC Act and the FTC's Telemarketing Sales Rule by providing a deceptive operation named Money Now Funding to maintain merchant accounts that allowed it to process almost $6 million through credit card networks by submitting and approving fraudulent applications in the names of more than 40 fictitious Money Now Funding companies. The FTC also claims they evaded the anti-fraud monitoring efforts of the credit card networks. 

In response to these charges, the business provided the following statement:
EPS is a victim of the scam perpetrated by “Money Now Funding” (“MNF”).  The FTC previously litigated in another case its claims against MNF and the individuals involved.  EPS was not part of that case and strongly disputes and will defend against any and all allegations of the FTC to the extent they assert EPS engaged in misconduct either in connection with MNF or otherwise.  The FTC has punished the wrongdoers and is now trying to sue the victims!  The wrongdoers (MNF) involved in this matter are a group of individuals who, through deceptive and nefarious methods and practices and unbeknownst to EPS, submitted fictitious merchant applications and fictitious/altered checks to EPS to set up fictitious merchant accounts.  EPS, as well as its sponsoring bank (at the time Merrick Bank) and an independent third party processor (at the time TSYS Acquiring), were unknowingly used by the wrongdoers to process fraudulent credit card charges through those fictitious merchant accounts.  EPS is the largest single victim of the wrongdoers’ fraudulent scheme, having paid every penny of the chargebacks not paid by the wrongdoers to the tune of more than $1 million to cardholders who were taken advantage of by the wrongdoers