Customer - Claimed Non-Authorize use of CC, still using services that were provided.?

Question

Hi,

I have an online business and recently a customer claimed Non-Authorized use of thier credit card. We have thier signature on 2 documents but PP says it could take 75 days with no gaurantee either way. If they get away with this, can we go to collection agency. If so, is there a chance they could use us for turning them into the collection agency?

Answer 1

Hopefully you also ran their card with the receipt rub and got the imprint with the signature - this is the best proof you can provide. Just the signature on their receipt they can say it isn't them but the 2 combined is direct evidence this. Provide certified copies (take them to your bank and have them certified as copies of the original - this should be free) then forward them to the card center. You should also notify the customer that if they canceled the credit card they are still responsible and non-payment will be pursued by your collection agency and reported to their credit. If the item was something you can prove of value (like jewelry) you may be able to sue them in small claims court. Talk to a layer and see if it is worth it. Even after all of this work you may wind up stiffed. Sorry. In the future you can put a driver’s license number on all credit card payments as you would a check - this will show you verified ID with a photo. Be sure to place the ID policy in plain view so they can't dispute the practice. Good Luck!

Answer 2

Frank,

Provide the proof to Pay Pal that the customer is using the services. That should put it to an end without going to a collection agency.