FTC Warns Payment Processors on Debanking Practices

The Federal Trade Commission issued warning letters on March 26 to the chief executives of PayPal, Visa, Mastercard, and Stripe, cautioning the payment processors against denying services to customers based on political affiliations, religious beliefs, or lawful business activities. The action, led by FTC Chairman Andrew Ferguson, invokes President Donald Trump's August 2025 executive order that prohibits such debanking practices and signals potential enforcement under the FTC Act for unfair or deceptive conduct.

The letters emphasize that access to the financial system is essential for economic participation. Ferguson wrote that full participation in commerce and public life necessarily requires that law-abiding individuals can access and freely participate in our financial system. He further stated it is inconsistent with American values to deny law-abiding individuals the ability to run their legitimate businesses and feed their families because they attracted the ire of rogue American officials, overzealous activists, or, more worryingly, foreign governments seeking to control public discourse.

The FTC's move addresses complaints spanning years from various industries,...