PayPal, Stripe, Visa, Mastercard
On April 8, 2026, the FTC Chairman issued formal warning letters to PayPal, Stripe, Visa, and Mastercard cautioning them against 'debanking'—the practice of terminating customer accounts based on political or religious views. The letters cite a Trump Executive Order and threaten FTC investigations if violations are found. While targeted at payment networks and large fintechs rather than banks directly, the action has significant implications for BaaS banks whose fintech partners may face pressure to change account termination and risk decisioning practices. Sponsor banks that facilitate accounts through these payment platforms may need to review their own policies on account closures related to content or viewpoint considerations.
Verified from source: FTC Chairman Andrew N. Ferguson sent warning letters to PayPal, Stripe, Visa, and Mastercard warning against debanking customers based on political or religious views, citing a Trump Executive Order and threatening FTC investigations and potential enforcement actions under the FTC Act.
- BaaS banks may face indirect pressure to revise account termination policies for fintech partners
- Fintech partners using BaaS infrastructure could be subject to FTC scrutiny over debanking practices
- Political and regulatory pressure on debanking could complicate BSA/AML-related account closures at sponsor banks