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Olivia Kent
Olivia Kent, Attorney
Category: Business Law
Satisfied Customers: 1056
Experience:  Partner at Kent Law Group, LLC
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I have a customer that works government agency that does

Customer Question

I have a customer that works for a government agency that does purchases by credit card. She is not to do purchases over $2500 without doing an RFP, and has a credit card with that limit. Are there any legal issues for my company if we sell her merchandise (say $15,000 worth),ship it and then charge her card $2500 periodically until the total sale amount is met.
Submitted: 1 year ago.
Category: Business Law
Expert:  Olivia Kent replied 1 year ago.

Hello. My name is ***** ***** I'm an attorney. I’ll be happy to help you in any way I can. This site is for educational purposes only. Sometimes - although certainly not always - experts have to give you what you deem “bad news” but that should not be a reflection of how satisfied you are with the assistance your expert provided. My goal is to make sure you are completely satisfied before you submit your rating so please let me know if you have additional questions or you need me to clarify anything If there is a delay in the time it takes me to respond it is because I am working with a customer or I am not online - but rest assured I will respond to your follow up question, if you have one. Also, occasionally I will respond from a mobile JA unit, which automatically asks you to submit a rating once I submit a response - but please don't feel like you need to do so until we are done speaking. You could consider doing that but I don't absolutely love the idea... since she is authorized to make $2,500 worth of purchases, what I would do is bill her $2,500 daily for four days and ship the merchandise in four installments, since it would technically satisfy her restrictions - rather than allowing her to purchase $15,000 in merchandise in one transaction.

Customer: replied 1 year ago.
that makes sense but sometimes she has a single item for more than $2500 or a time constraint on receipt; however, we will endevour to do this. meanwhile are you confirming there are no credit card laws being broken using the other method?
Expert:  Olivia Kent replied 1 year ago.

I'm not sure what you mean by "credit card laws being broken" ... if you are given authorization to charge a credit card for a certain amount, then you would charge that credit card in that amount. Also, we are not permitted to give "legal advice" so all I can give you is information. What you want to try to avoid is knowingly violating restrictions that her employer has placed on her when you run that card. I mention this b/c you indicated that sometimes there are time constraints and therefore you wouldn't be able to ship on subsequent days. So if she tells you she cannot have her card run twice in one day but she urgently needs to place the order you need to decide how much of a risk you're willing to take that her employer will come back and say they're not paying for the transaction. I hope that makes sense. If you have any addt'l questions please let me know.