Business Litigation

Business Litigation may arise from many services including Credit and Debit Card Processing. If you are a merchant who uses a credit and debit card processing unit, you need to make sure that you are working with a credit and debit card processing company that has sufficient fraud safeguards that protect you. Too often, banks are withdrawing chargebacks from merchant accounts well after the fraudulent transactions have occurred and there may be little or nothing a merchant can do at that time to recover the charged back funds and the merchandise from the fraudster. These fraudulent transactions are often not a one-time transaction and therefore can subject the merchant to even greater damages. Often the fraudsters who are involved in the transaction are long gone before the merchant has sustained the full extent of the damages. As a result, the only thing a merchant can do is file a lawsuit against the credit and debit card processing company and the developer of the credit and debit card processing software to recovery these damages. Common claims against these credit and debit card processing companies and/or the software developer are for breach of contract, negligence and fraud. The breach of contract claim can be the most straightforward to prove where fees charged, including processing and chargeback fees, are in excess of what is contractually agreed upon. The negligence claim focus on the amount of time the credit and debit card processing company took to identify the fraudulent transactions. This includes a claim against the software developer for failing to have procedural safeguards in place to identify the transaction at or near the time of its occurrence. Depending on the matter, the fraud claims can encompass a number of issues, including the failure of the credit and debit card processing company to disclose known deficiencies with the credit and debit card processing software before the merchant enters into the credit and debit card processing agreement. Before you sign a contract for one of these credit and debit card processing units, you want to be sure that the company you are going to deal with has not had any of these problems. Many of these companies are now following payment card industry compliance (“PCI”) which protects card information during and after a transaction, which in turn provides further security in this industry. For more information regarding your potential claims under these circumstances, contact the Law Office of H. Benjamin Sharlin LLC for a free initial consultation. [divider]

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Please be advised that this blog is for informational purposes only, is not legal advice and does not create an attorney-client relationship.