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  1. #1
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    August 26th, 2009
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    Visa Chargeback Fines
    We've been "fined" by Visa for exceeding chargeback limits, but feel both the circumstances involved in the chargeback situation (double billing error where we made full restitution to all involved - fraud) and the amount of the fines ($100 per every transaction for just a $20 purchase - we made full restitution to all consumers and paid the usual chargeback fees to VISA) are excessive. We appealed through our processor but they didn't do a good job of representing our case, now they and Visa claim there is no further way to appeal. Is there any legal recourse for us? Are there other small businesses caught in this situation that we could learn from? Help - these fines could sink us!

  2. #2
    Outsourced Program Manager paladin's Avatar
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    January 29th, 2007
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    Who do you have a contract with and what does that contract say?

  3. #3
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    August 26th, 2009
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    Contract was with the processor who also "represented" our appeal to Visa. Contract with processor says Visa's fines pass thru to us; however, representation from processor to Visa wasn't adequate. Plus fines are clearly not related to the cost of the problem. All consumers claims and all service charges were paid and then fines 10 times greater than those processing fees are assessed.

  4. #4
    Outsourced Program Manager paladin's Avatar
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    January 29th, 2007
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    USA
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    Did the contract specify the amount for Chargeback fees? Usually these are between $10-$30 per transaction (on top of the transaction amount).

    While I am not a lawyer, it does sound like you are stuck. You bascially signed a contract saying you would pay whatever Visa billed your merchant processor.

    You should also look for a new merchant processor and may sure these terms are specified in future contracts.

    What industry are you in? I work with several processors right now and may be able to point you in the right direction.

    -Alon

  5. #5
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    August 31st, 2009
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    3
    Visa says the change is not designed to snare more merchants, but to keep some from bouncing in and out of a program that was too complicated and included too many merchants.
    Last edited by Greg Rice; September 1st, 2009 at 07:53 AM. Reason: Removed manual sig

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