naviracer23
Junior Member
Wisconsin
Basically, back in december, I asked a friends dad to help financially with a internet website I run and told him that I needed to stock some inventory and that I needed to use his credit card to ship orders same day orders were placed rather than me having to wait 2-3 days for the money to be deposited and thus delaying days until I could ship an order. We had a verbal agreement that this was ok and I was given his credit card number to order inventory and ship orders. We do not have a written contract or anything. Then in december, I got hit with a $3000 + chargeback because someones credit card # was stolen and used on our website. Well 3 weeks later I found out that our merchant account was put on hold due to the chargeback. I found out because I had to call the processor as I was never notified the account was placed on hold. Meaning that every penny people were paying was being held by the processor rather than deposited into my bank. They never sent a letter, never called and I have called several times since to get a letter showing the funds on hold. Have not received anything as of yet. They also informed me that when I called that my account will be off of hold by the end of the week. Well, this went on for a month before I finally dropped them as a processor. Well problem is, during this month a half time period, I was using my financial backers credit card to ship the orders that were coming as I suspected the funds would be deposited "by the end of the week". Beginning of february came, and I was finally informed that they are going to hold the funds for 6 months. My financial backer also got his credit card bill in february for $17,000 and I have not received a single deposit to pay him for the products I shipped as the funds were processed by the processor, just never put in my bank account. He now is upset and is thinking about pressing charges as he cannot really afford to foot the bill for the next 4 months and is now telling me that he did not know I was going to use his card to ship orders. What should I do? Is there anything I can do since we only have a verbal agreement? I do not believe that he disputed the credit card charges as of yet either. What do you think I should do?
If he tries to state that he had no knowledge of this, other purchases were made from the same supplier with his credit card that he is not claiming he had no knowledge about. He also filled out and signed a credit application with me on the application as well in order to obtain a line of credit with a supplier. So would that not suggest he had clear knowledge of the above situation of his credit card being used?
Basically, back in december, I asked a friends dad to help financially with a internet website I run and told him that I needed to stock some inventory and that I needed to use his credit card to ship orders same day orders were placed rather than me having to wait 2-3 days for the money to be deposited and thus delaying days until I could ship an order. We had a verbal agreement that this was ok and I was given his credit card number to order inventory and ship orders. We do not have a written contract or anything. Then in december, I got hit with a $3000 + chargeback because someones credit card # was stolen and used on our website. Well 3 weeks later I found out that our merchant account was put on hold due to the chargeback. I found out because I had to call the processor as I was never notified the account was placed on hold. Meaning that every penny people were paying was being held by the processor rather than deposited into my bank. They never sent a letter, never called and I have called several times since to get a letter showing the funds on hold. Have not received anything as of yet. They also informed me that when I called that my account will be off of hold by the end of the week. Well, this went on for a month before I finally dropped them as a processor. Well problem is, during this month a half time period, I was using my financial backers credit card to ship the orders that were coming as I suspected the funds would be deposited "by the end of the week". Beginning of february came, and I was finally informed that they are going to hold the funds for 6 months. My financial backer also got his credit card bill in february for $17,000 and I have not received a single deposit to pay him for the products I shipped as the funds were processed by the processor, just never put in my bank account. He now is upset and is thinking about pressing charges as he cannot really afford to foot the bill for the next 4 months and is now telling me that he did not know I was going to use his card to ship orders. What should I do? Is there anything I can do since we only have a verbal agreement? I do not believe that he disputed the credit card charges as of yet either. What do you think I should do?
If he tries to state that he had no knowledge of this, other purchases were made from the same supplier with his credit card that he is not claiming he had no knowledge about. He also filled out and signed a credit application with me on the application as well in order to obtain a line of credit with a supplier. So would that not suggest he had clear knowledge of the above situation of his credit card being used?
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