How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118265
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
Type Your Business Law Question Here...
Law Educator, Esq. is online now
A new question is answered every 9 seconds

I have a fairly new (2years) wholesale business. I had a customer

Customer Question

I have a fairly new (2years) wholesale business. I had a customer who gave me his credit card # XXXXX email ( I told him not to but he did anyway!) I ran the #s along with the address and it was approved. Now I am told it was a fraud. The items were dropped shipped to the UK and of course I had to pay my distrubutor for them. Now my merchant processors is deducting it from my checking account without notice and it has put me in the hole. Shouldn't they be responsible?? They are the ones who approved the card!! This deal is really messing my small business up! I have spoken to my bank and they say dispute it through them. Who is really responsible me or the merchant processor?? Please advise because this could put me out of business!!
Submitted: 8 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 8 years ago.
Your dispute is through the merchant company since the transaction was not fraud and you would have to prove the transaction was authorized by your customer by providing them copies of the emails where they sent you the card number to process the sale. If you are not successful through the merchant processor, then you would have to sue the customer in the UK.

I hope you found my answer helpful, please click on the GREEN ACCEPT for my answer. This is necessary for me to be paid for my work and so that I can get credit for assisting you. Your question will not close, and you will still have the opportunity to follow-up if needed. Leaving a bonus and positive feedback is not required, but doing so is certainly appreciated!

If you have additional questions, please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. Please consider that I am answering the question or question that is posed in your posting based upon my reading of your post and sometimes misunderstandings can occur. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered.

Also remember, sometimes the law does not support what we want it to support, but that is not the fault of the person answering the question, so please be courteous.

There can also be a delay of an hour or more in between my answers because I may be helping other customers or taking a break.

You can always request me through my profile at or beginning your question with “For PaulMJD…”

Customer: replied 8 years ago.
It was fraud because the guy placed a second order and they caught that one. He had some sort of software to produce credit cards and scammed me. I have the address and name where it was shipped to but that poor fellow could have just ordered it from him or maybe it was a fake address??? I just don't know. I need to know what my rights are as a merchant. I know my dispute is with the processing company but is it my fault or theirs??
Expert:  Law Educator, Esq. replied 8 years ago.
If there was fraud in this manner then your recourse is against the party that stole the credit card, unless your merchant processor provided you with merchant fraud protection and for that you would need to read the merchant processor agreement. In this type of case, you will have to file against the party that actually used the fraudulent card.
Law Educator, Esq. and 4 other Business Law Specialists are ready to help you
Customer: replied 8 years ago.
Thank you, XXXXX XXXXX have to read my agreement better. I think I am up the creek without a paddle because I am sure this guy doesn't really exist!!
Expert:  Law Educator, Esq. replied 8 years ago.
Thank you. If they are in the UK, you can contact Interpol's internet fraud unit as well.