FTC and Washington Settle With Riverside Payments Over Alleged False Savings Promises and Hard-to-Cancel Contracts

Published Nov. 6, 2026. Case status is current as of that date.

A sales rep promises a small business it will cut its card-processing costs by "nearly 60%," with a "no-risk" way out if it doesn't work. Months later the bills are higher, a terminal lease is running, and canceling means phone calls that go nowhere. The Federal Trade Commission and the State of Washington say that is what happened to customers of Riverside Payments, Inc., and they announced a $600,000 settlement on Nov. 2, 2026 [1].

Important: These are allegations in a civil case. The defendants "neither admit nor deny any of the allegations in the Complaint, except as specifically stated in this Order," according to the proposed stipulated order [2]. No court has found them liable.

What the FTC and Washington allege

According to the Washington Attorney General's release, which describes the complaint [1]:

• Vancouver, Wash.-based Riverside, its affiliate Cascade Equipment Leasing, LLC, and their owners "falsely promised small businesses that they would save money on payment processing services."
• Riverside allegedly claimed businesses could in some cases save nearly 60%, but businesses that switched "typically ended up paying more" than before.
• It allegedly failed to disclose various added fees and buried a $695 early termination fee and the cost of leasing processing machines from Cascade. Customers were also enrolled in automatically renewing contracts without clear notice.
• Despite a promised "no-risk" guarantee, cancellation allegedly left customers in a "complicated loop of deflection and fruitless phone calls."
• Riverside allegedly made false and unsubstantiated claims to recruit commission-based sales agents, advertising $75,000 to $95,000 a year and "100k" for top agents, while agents on average made about $3,800 per year, according to the complaint.
• The FTC alleges violations of the FTC Act and the Gramm-Leach-Bliley Act (obtaining financial information through false or fraudulent statements). Washington alleges violations of its Consumer Protection Act.

"Riverside and Cascade failed to serve their small business customers in an honest, transparent way in violation of Washington law," said Washington Attorney General Nick Brown [1].

The settlement terms

Under the proposed order, per the release and the filed order [1] [2]:

• A $32 million judgment is entered against Riverside, Cascade and the owners, suspended after payment of $600,000 because of an inability to pay. The full amount comes due if they are found to have misrepresented their finances.
• Small businesses can rescind processing agreements without a termination penalty, and defendants must notify customers of a 60-day waiver of the early termination fee.
• More than 300 Washington small businesses will be eligible for compensation based on processing volume over the past six months.
• Defendants are barred from misrepresenting costs, savings, cancellation terms or earnings, and must clearly disclose material terms and get express consent before billing for a negative option plan.

The people and companies

Brandon Skinner and Jason Reese are named as defendants "individually and as an officer and owner of Riverside Payments, Inc. and manager of Cascade Equipment Leasing, LLC" [2]. Their ages and cities are not given. The case is Federal Trade Commission and State of Washington v. Riverside Payments, Inc., et al., No. 2:26-cv-04228, in the U.S. District Court for the Western District of Washington; the order was filed Nov. 2, 2026 [2]. Whether the court has entered it is status pending in the materials we reviewed.

Red flags for small businesses

These are general warning signs, not claims about any person named here.

• A rep promises specific savings percentages without reviewing your actual statements.
• A "risk-free" or "no-obligation" guarantee that is not clear in the contract.
• Equipment leasing bundled with processing, often with a separate contract.
• A large early termination fee or auto-renewal buried in the fine print.
• Recruiters who advertise high, easy earnings for sales agents.

What to do

• Compare the rep's quote to your own statements and ask for every fee, lease and cancellation term in writing before signing.
• Read the contract, especially renewal, termination and equipment lease sections.
• If you are already in a contract, save emails and call logs of cancellation attempts and ask about any refund or rescission offered under this order.
• Report problems to your state attorney general and at ReportFraud.ftc.gov.

Case status (as of Nov. 6, 2026)

Defendant	Court	Status	Source
Riverside Payments, Inc.; Cascade Equipment Leasing, LLC	W.D. Wash., 2:26-cv-04228	Stipulated order filed Nov. 2, 2026; $600,000 payment, $32M judgment suspended; no admission or denial; court entry not confirmed	[1], [2]
Brandon Skinner; Jason Reese (individually)	Same	Same order	[1], [2]

Statuses can change.

Sources

1. Washington State Attorney General's Office, "WA, FTC reach $600K settlement with payment processing company for deceptive practices," Nov. 2, 2026. https://www.atg.wa.gov/news/news-releases/wa-ftc-reach-600k-settlement-payment-processing-company-deceptive-practices
2. U.S. District Court, W.D. Wash., Federal Trade Commission and State of Washington v. Riverside Payments, Inc., et al., No. 2:26-cv-04228, Doc. 2-1, "Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief," filed Nov. 2, 2026. https://search.ftc.gov/system/files/ftc_gov/pdf/Riverside-Order.pdf

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