Handling Credit Card Disputes

By James Waite Question: Recently, we had a customer cause more than $10,000 worth of damage to our equipment. We charged the repair cost to his credit card, but he disputed the charge. He initially admitted in writing that he actually used the machine, but claimed it was defective upon delivery. When that didn’t work, he disputed the charge with his credit card company saying a member of his family actually signed the charge authorization, not him. Is this even legal? What can we do? Answer: As most of my clients can tell you, experiences like yours are not uncommon. It is not illegal for a cardholder to allow someone else to use his credit card unless fraud is involved; it’s foolish and inadvisable, but not illegal in most cases. In this case, however, fraud actually may have taken place, and in any event, the cardholder’s actions probably constitute a violation of the cardholder’s agreement with his credit card issuer. Both may be of help to you. READ FULL ARTICLE>>