The French payment processing giant Worldline is currently at the center of an international journalistic investigation for allegedly systematically concealing its clients’ fraud, prioritizing financial gain over crime prevention. An extensive report, the result of collaboration between the Dutch outlet NRC and twenty other news organizations within the European Investigative Collaborations (EIC) network, exposes a series of questionable practices that reportedly enabled thousands of consumers to be defrauded.
The publication of these findings has led to a substantial decline in the company’s share value and has called its compliance practices into question. On Wednesday, Worldline shares plummeted by as much as 35% of their value, reaching a historic low. Worldline is one of the largest payment processors in Europe, with $550 billion in transactions managed annually.
This latest drop concludes a downward trend over the past five years, during which the company has lost more than 90% of its market valuation.
Performance of Worldline stock price. Source: Google
According to the investigation, Worldline, despite internal warnings from its own risk department, allegedly made a deliberate choice to retain clients with significant fraud records due to the substantial revenue they generated.
The report details how the company is said to have used various tactics to manipulate fraud statistics, including moving clients with high rates of fraudulent activity between different divisions to “make the numbers look better” and comply with the standards of companies such as Visa. Among the most notable cases is Emerchantpay (EMP), a financial intermediary that, despite accounting for 40% of fraud cases in one of Worldline’s divisions, was exempt from strict control measures.
[Update 06/30/2025: Emerchantpay contacted Marketing4eCommerce to provide us with the following statements:
«We are aware of recent media allegations relating to the processing of transactions for online merchants, to which emerchantpay Ltd has been linked, and which we believe fundamentally misrepresent the facts. We take such matters extremely seriously. We have initiated an internal review to understand the full context of the claims to ensure we respond appropriately.
To date, we have not been contacted by any regulatory authority regarding any investigation or finding. Should that occur, we remain fully cooperative and transparent.
Emerchantpay Ltd is a fully licensed and regulated Electronic Money Institution (EMI), authorized by the UK Financial Conduct Authority (FCA). We have always operated – and continue to operate – in full compliance with all applicable laws, including Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) regulations. Periodic audits and reviews performed on emerchantpay Ltd. by the card schemes and independent external auditors over the past few years support that statement».]
In response to the accusations, Worldline explained that “when the Group identifies evidence of non-compliance situations, immediate additional controls are performed, which may result in the termination of the client relationship. The Executive Board and Board of Directors of Worldline are fully committed to strict compliance with regulations and risk prevention standards, and to the rigorous application of the standards and procedures related to zero tolerance.”
In any case, Worldline has allegedly accepted new ‘high-risk’ clients (companies in the gaming industry, adult entertainment, and online casinos) introduced by EMP without conducting adequate verification, contravening internal warnings regarding the risks of money laundering and the potential loss of its license. An internal Worldline investigation into EMP uncovered signs of money laundering and a “secret” network of clients with no legal existence.
Although it is not illegal per se to process payments for these sectors, the regulations require exhaustive and enhanced monitoring to ensure they are not used for illicit activities. The accusation suggests that Worldline either did not implement or failed to implement these controls properly.
The Dutch subsidiary of Worldline, Global Collect Services, is also under scrutiny. The report reveals that GCS accepted an Indian telemarketing company with a record of fraudulent software sales, even after another payments company, Adyen, had refused it as a client. The information indicates that Worldline was warned about this client as early as 2007 due to “suspicions of pornography” and high rates of payment reversals, but chose to maintain the commercial relationship.
The investigation points to a clear internal tension within Worldline between risk management and commercial objectives. In 2020, the company’s risk committee expressed concern over possible Visa sanctions relating to high fraud rates. Although it was recommended to remove clients with more than 10% of their revenue from fraudulent activities, the commercial division objected, citing a potential loss of $41.8 million. The decision ultimately favored profits, leading to the relocation of fraudulent clients within other divisions instead of severing ties.
In response to the investigation, Worldline has issued an official statement.
Worldline operates within a demanding and ever-evolving regulatory environment, particularly concerning sectors designated as high brand risk (HBR), such as online casinos, online brokerage, or adult dating services.
Since 2023, the Group has strengthened its risk framework for merchants in order to ensure full compliance with all laws and regulations. Additionally, it has conducted a comprehensive review of its HBR merchant portfolio—which currently represents approximately 1.5% of its acquired volumes—and has ended commercial relationships deemed non-compliant with its enhanced risk framework for merchants. As indicated in prior financial communications, these decisions affected merchants representing $143 million in annual recurring revenue for 2024. For reference, according to the latest reports from international schemes, Worldline’s fraud rate is below the industry average.
All HBR clients that remain active in this portfolio are now subject to enhanced monitoring, following specific procedures. Additional requirements have been introduced in terms of controls, verifications, and supporting documentation to ensure ongoing alignment with regulatory obligations and with our improved internal standards. Worldline has progressively increased its first and second line resources to implement these enhanced requirements as part of the Group-level Financial Crime Compliance (FCC) strategy, aiming to further strengthen monitoring and controls through regular interaction with relevant regulatory authorities.
This case highlights a growing concern among European regulatory authorities. Both the European Banking Authority (EBA) and the Dutch Central Bank (DNB) have warned of the risks of money laundering and terrorist financing in the payment processor sector.
The DNB has intensified its supervision, recognizing that payment processors often serve clients that have been rejected by traditional banks and present greater complexity in international payment chains.
Image: Worldline
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