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Bank of America Merchant Account

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Kurt9

Junior Member
What is the name of your state? Washington

We are an online merchant. We have a merchant account with Bank of America with Cybersource as the online processor. Our business is selling consumer items internationally (i.e. outside the U.S.). We made a series of sales several months ago, with payment received by credit card, which later turned out to be fraudulent use of credit card.

We then received charge-backs from these sales (where we had already delivered the product). We found that the chargebacks where withdrawing money from our account (which is with BofA) without any knowledge or prior warning.

In the course of receiving and fulfilling orders, we found that the Cybersource would "approve" credit cards in many cases where, if we contacted the issuing bank, we found that the credit card had been reported stolen or the account closed.

As merchants, we took the precautions that were recommended to us by B of A and Cybersource.

Is there any legal recourse to get our money back from these chargebacks from B of A?
 


SleeplessInMI

Junior Member
We found that the chargebacks where withdrawing money from our account (which is with BofA) without any knowledge or prior warning.
This is nothing unusual. That is how a CC processor works. They put money in your account when you get a sale and then take it back if there is a chargeback. You should have receive a notice about the chargeback which would also be grounds for notification that they would be taking the money back out of your bank account. How else are they supposed to get the fraud victims money back?

Is there any legal recourse to get our money back from these chargebacks from B of A?
If they put the money in your account from the sale then they have the right to take it back if the order was from a fraudulant CC.

It sucks you shipped out the product and didn't get paid for them. But fraud is a big risk you take when dealing with international orders.

Does your CC processor provide info on each order about billing address and security code (3 digit code on back of the cc) matching?
 

Crispix

Member
You were taken.

Yes, you are responsible for paying back the money if the card was stolen. You can check with your business insurance to see if any of the loss is covered.
 

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