6.
 
Re: Evening Legal Briefs
Nov 12, 2013, 02:51
6.
Re: Evening Legal Briefs Nov 12, 2013, 02:51
Nov 12, 2013, 02:51
 
You have up to 18 months to do a chargeback and dispute a credit card charge on your account. There are multiple reason codes (service not as advertised, etc.) and each one requires different requirements for processing. Once a chargeback has been placed against the merchant the funds are removed instantly from their accounts and held until the dispute is resolved. The dispute will be taken to the issuing card's arbitrators and they will see if you met all the requirements to process the card. If the merchant doesn't 100% exactly meet those requirements for processing they will lose the dispute and the money will be given back to the card holder minus a $20-$30 chargeback processing fee that is always charged to the merchant no matter if you lose or win. If the customer loses they have the option to do a second time chargeback and it will cost the merchant upwards of $500 to send it back again to the same arbitrators for another review. It's quite common for the merchant to "give up" at this point because it's pretty stupid to pay $500 to get $50 dollars back. Even if the merchant wins they will still get charged the chargeback processing fee...

BTW I used to work for a credit card company and dealt with this everyday talking directly to the merchants. The system is broken and is setup to rip off the merchant at all costs. I would never accept a credit card unless I could physically swipe the magnetic stripe, verify the identity of the card holder by ID, take a carbon copy of the card, a photocopy of their license, and video tape surveillance showing their face. Even then that's not 100% fool proof. It's way too easy to rip off merchants on technicalities alone. Even if you collect and process the transaction properly there is still a very good chance you will lose anyway. The credit card companies don't care about the merchants they rip off just that their card holders continue to use their cards and pay the interest to them. All those frequent flyer miles and cash back and award point programs you have on your card, guess who is paying for those? That's right the merchant is.. But merchants continue to take credit cards because they would lose too much business otherwise. If I was a store owner I would take cash only and put an ATM inside for people to get cash to use.
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Re: Evening Legal Briefs
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Nov 12, 2013Nov 12 2013