Legal Question in Business Law in California

Who is responsible for charges related to a stolen credit card, the merchant, the vendor, or is there insurance for such situations?

I, a merchant, received an order for product. After verifying credit card with bank, product was ordered from a vendor. The vendor discovered the fraud report after shipping product to a holding location. The vendor was able to regain possession of the product and return shipped to the vendor warehouse. I had paid for 70% of the total order. The vendor has retained possession of all product and has not refunded the money paid towards the product. The money held by the vendor originated from the customer stolen credit card.


Asked on 11/17/11, 7:58 pm

1 Answer from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Maybe your business insurance will cover any loss you may ultimately suffer..

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Answered on 11/17/11, 8:50 pm


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