FTC Warns Payment Processors to Stop Debanking Over Politics, Religion

The federal agency says denying financial services based on beliefs violates American values.

Mar. 27, 2026 at 1:19am

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The Federal Trade Commission (FTC) has issued warning letters to four major payment companies - Visa, Mastercard, PayPal, and Stripe - instructing them to stop debanking individuals and businesses based on their political affiliations or religious beliefs. The FTC chair stated that denying law-abiding citizens access to the financial system due to their beliefs is "inconsistent with American values" and cited a 2025 executive order by former President Trump that prohibited such practices.

Why it matters

The issue of "debanking" - the denial of financial services to certain individuals or industries deemed "high-risk" - has long been a concern for adult entertainment professionals and sex workers, who have reported being disproportionately affected. The FTC's warning letters signal a federal crackdown on the practice, which critics say unfairly targets people based on their political or religious views rather than legitimate business concerns.

The details

In the warning letters, FTC chair Andrew Ferguson stated that "full participation in commerce and public life necessarily requires that law-abiding individuals can access, and freely participate in, our financial system." He added that denying people the ability to run their businesses and support their families due to their "political affiliations, religious beliefs, or lawful business activities" is unacceptable. The letters cite a 2025 executive order by former President Trump that prohibited debanking on such grounds.

  • The FTC issued the warning letters on Thursday, March 27, 2026.
  • Former President Trump signed the executive order on debanking on August 7, 2025.

The players

Federal Trade Commission (FTC)

The federal agency responsible for protecting consumers and promoting competition.

Andrew Ferguson

The current chair of the Federal Trade Commission.

Donald Trump

The former President of the United States who issued an executive order in 2025 prohibiting debanking based on political affiliations or religious beliefs.

Visa

One of the major payment processing companies that received a warning letter from the FTC.

Mastercard

One of the major payment processing companies that received a warning letter from the FTC.

PayPal

One of the major payment processing companies that received a warning letter from the FTC.

Stripe

One of the major payment processing companies that received a warning letter from the FTC.

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What they’re saying

“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.”

— Andrew Ferguson, Chair, Federal Trade Commission

“That is why President Trump's August 7, 2025, executive order on debanking makes clear that it is unacceptable to debank law-abiding citizens due to 'political affiliations, religious beliefs, or lawful business activities.'”

— Andrew Ferguson, Chair, Federal Trade Commission

What’s next

The FTC has given the payment processing companies a deadline to respond to the warning letters and demonstrate how they will comply with the directive to stop debanking individuals and businesses based on political or religious beliefs.

The takeaway

This FTC action represents a significant federal intervention to protect the rights of individuals and businesses to participate in the financial system without discrimination based on their political views or religious affiliations. It signals a shift away from the controversial practice of "debanking" that has disproportionately impacted certain industries and communities in recent years.