Estimated reading time: 8 minutes.
Key facts
- Case: Federal Trade Commission and State of Washington v. Riverside Payments, Inc., et al., No. 2:26-cv-04228, U.S. District Court for the Western District of Washington, filed November 2, 2026.
- Defendants: Riverside Payments, Inc., Cascade Equipment Leasing, LLC (also doing business as Cascade Capital Group), and co-owners Brandon Skinner and Jason Reese, all based in Vancouver, Washington.
- What is alleged: False savings promises, a misleading "risk free" guarantee, hidden contract terms, hard cancellation and inflated earnings claims to recruit sales agents.
- Proposed settlement: A $32,083,921 judgment, suspended after the defendants fund a $600,000 Merchant Redress Fund for refunds to small businesses.
- Who may get money: Businesses that have a Riverside or Cascade agreement as of the date the order is entered. Refunds are paid automatically by ACH, based on processing volume.
- Cancellation window: Current clients get a 60-day window to cancel their processing agreement with no early termination fee. Equipment leases are not included.
- Status: The stipulated order takes effect only if the judge approves and enters it. The defendants neither admit nor deny the allegations.
In this article
- What the FTC and Washington filed
- Who the defendants are
- The savings pitch at issue
- The guarantee and the contract terms
- Cancellation complaints
- Claims about sales agent pay
- What the proposed order requires
- What this means for small businesses
- Frequently asked questions
A Vancouver, Washington, payment processor and its equipment leasing affiliate have agreed to a proposed $600,000 settlement with the Federal Trade Commission and the State of Washington over claims that they misled small businesses about card processing costs and made it hard to cancel. The complaint and a stipulated order were filed together in federal court in Seattle on November 2, 2026.
This is a government enforcement case, not a private class action. It matters to restaurants, retail shops and other merchants that signed with Riverside Payments or Cascade Equipment Leasing, because current clients may receive automatic refunds and a one-time chance to exit their processing contract without the usual fee.
What the FTC and Washington filed
The FTC claims violations of Section 5 of the FTC Act, which bans unfair or deceptive practices, and the Gramm-Leach-Bliley Act, a federal law that, among other things, bars using false statements to get a customer's bank information. Washington brings a separate count under its Consumer Protection Act.
The complaint lists six counts:
- Misrepresenting total costs and savings.
- Misrepresenting cancellation, including the "risk free" promise.
- Unfair cancellation practices.
- Misrepresenting sales agent earnings.
- Using false statements to obtain businesses' bank account information, under the Gramm-Leach-Bliley Act.
- Unfair or deceptive acts in Washington, brought by the state.
The FTC said the Commission voted 2-0 to file the complaint and proposed order. Every description of the defendants' conduct below is an allegation. The defendants neither admit nor deny the allegations, according to the order.
Who the defendants are
Riverside Payments, Inc. is a Washington corporation, and Cascade Equipment Leasing, LLC is a Delaware company. Both list the same address, 5721 SE Columbia Way in Vancouver. Brandon Skinner is president and CEO of Riverside, and Jason Reese is its secretary and chief financial officer. The complaint says each owns 50% of both companies.
According to the complaint, Riverside acts as an independent sales organization, or ISO, for larger processors such as Fiserv. That means it signs up merchants and resells processing services rather than running the card networks itself. The complaint says the companies sell mainly through telemarketing and door-to-door visits by hundreds of commission-based sales agents, and that they have thousands of small business clients nationwide.
The savings pitch at issue
The complaint says sales agents followed scripts promising merchants they would save money by switching. It describes:
- A flyer claiming businesses save an average of $2,000 per year and are "pre-approved for 0% debit transactions and 1% average on credit transactions."
- Claims of a "strategic alliance" with Visa and Mastercard that let small businesses get rates like Fortune 500 companies. The complaint says no such alliance exists.
- Quote sheets showing savings of over 40%, or nearly 60%, compared with a merchant's existing processor.
- Training that told agents to look at a prospect's statement "with a concerned look on your face because they are paying too much."
The complaint says quotes left out annual fees, monthly software fees, American Express charges and possible rate increases, and that clients often ended up paying more than they had with their old processor.
What an effective rate is The effective rate is the share of your total card sales that goes to all processing and equipment charges. Compare it on your actual monthly statements, not only on a sales quote.
The guarantee and the contract terms
According to the complaint, agents offered a "Guarantee of Savings": if the business was unhappy, Riverside would switch it back to another provider "at absolutely no cost" and pay $500 "for the time and hassle."
The complaint says the signed paperwork told a different story. It describes a roughly 26-page electronic agreement with:
- A three-year processing term that automatically extends one year at a time.
- A $695 early termination fee, listed at the bottom of a page of other fees.
- A separate equipment lease with Cascade that is non-cancelable for four years, one year longer than the processing agreement, and then renews month to month.
The complaint says training materials told agents that "the [equipment] lease should never come up pre-quote." It gives the example of a North Carolina business that paid about $47 a month for four years, roughly $2,250 in total, for a machine that would have cost around $400 new.
Cancellation complaints
The complaint says merchants trying to cancel were often told the cancellation team was "purely outbound" and would call back, but the call often never came. Under the companies' written process, staff would treat an account as a "dead deal" only after the client refused at least three times to keep using the service.
Examples in the complaint include a Florida auto parts store owner who tried to cancel starting in December 2024 and was billed through at least June 2025, and a Kentucky restaurant owner who spent over a year trying to cancel. The complaint says some business owners closed their bank accounts to stop the charges. It says the companies drew hundreds of complaints, including through the Better Business Bureau and at least 10 state attorneys general.
Claims about sales agent pay
The case also covers how the companies recruited the agents who made these sales. Job ads claimed average yearly earnings of $75,000 to $95,000, and an interview script said average full-time reps made $6,000 per month.
The complaint cites the companies' own records: in 2024 they paid $1,249,850.93 to 330 contractors, an average of $3,787 each. It says no sales agent earned six figures in 2023 or 2024.
Not yet final The order was filed as a proposal agreed to by both sides. It becomes binding only when the judge signs and enters it, and its deadlines run from that date.
What the proposed order requires
Money. The order enters a $32,083,921 judgment against all four defendants jointly. The defendants satisfy $600,000 of it by funding a Merchant Redress Fund. The rest is suspended based on sworn financial statements, and the suspension can be lifted if those statements prove false.
Refunds. Within 60 days of the order, the defendants must propose to the FTC a pro rata distribution based on each merchant's processing volume in the six months before the order. The FTC can accept or change the plan. Refunds go out by ACH within 14 days of approval. If the defendants cannot pay merchants for any reason, they must instead pay $600,000 to the FTC within 80 days of entry.
Notice and cancellation. Within 30 days of entry, the defendants must email current merchants explaining that, for 60 days, they can cancel their processing agreement without an early termination fee. The model notice gives a phone number, (866) 720-0644, and says the equipment lease "will remain in effect according to its original terms."
Conduct rules. The order bans misrepresenting costs, savings or cancellation terms and bars unsupported earnings claims to recruits. The Washington Attorney General's office said more than 300 Washington businesses are eligible for compensation.
Washington Attorney General Nick Brown said the companies "failed to serve their small business customers in an honest, transparent way in violation of Washington law."
What this means for small businesses
If you currently process with Riverside, watch your email for a notice with the subject line "Notice Regarding Termination Right, Waiver of Early Termination Fee, and Refund" once the order is entered. According to the model notice, everyone who receives it and has processed payments through Riverside gets a refund automatically, whether they stay or leave. The order defines eligible merchants as those with an agreement as of the date of the order, so it is unclear whether former clients will receive anything.
The lease is separate The fee waiver covers the processing agreement only. Your Cascade equipment lease continues on its original terms, and the model notice says you must call to cancel it and return the equipment at the end of the term.
The FTC brought a similar hidden-fee and cancellation case against restaurant platform Toast. For cases open to individual consumers, see our list of class action cases you can join. This article is for information only and is not legal advice.
Frequently asked questions
What is the Riverside Payments settlement?
It is a proposed stipulated order filed November 2, 2026, by the FTC and Washington State. It enters a $32,083,921 judgment that is suspended after the defendants fund $600,000 in refunds for merchants.
Who is eligible for a Riverside Payments refund?
Under the order, merchants that have a Riverside or Cascade agreement as of the date the order is entered. Refunds are split based on processing volume in the six months before the order.
Do I need to file a claim?
No. The order calls for automatic ACH refunds to merchants' bank accounts after the FTC approves a distribution plan.
Can I cancel my Riverside contract without the $695 fee?
The order requires a 60-day window, after a notice sent within 30 days of entry, to cancel the processing agreement with no early termination fee. The Cascade equipment lease is not covered.
Did Riverside admit wrongdoing?
No. The order says the defendants neither admit nor deny the complaint's allegations, except facts needed for jurisdiction.
Is this a class action?
No. It is a government enforcement action by the FTC and the Washington Attorney General. Merchants do not need to join or opt in to receive a refund under the order.
