Video game store owner fined $500,000 after offering $2,000 in credit card fees to customers
NEW YORK (Reuters) – A video game store operator in New York City was fined $100,000 by the city’s Department of Financial Services on Friday for allowing customers to pay with a credit card.
The owner of the online store, which specializes in video games and entertainment, admitted to accepting fees for credit cards from the customers and for the use of credit cards, the DFS said in a statement.
The fine comes after a DFS investigation last year found that the company used “in-person payment services” for more than 400,000 customers, including many who were in the U.S. illegally.
The DFS issued a separate $50,000 fine to a video game developer for providing customers with credit cards without proper verification and not complying with federal law.
In a statement, the developer, Warner Bros., said the company would appeal.
The video game business in New Mexico has been booming in recent years, fueled by the availability of virtual currency, the virtual currency of choice for illegal immigrants and those who have sought work in the country illegally.