Legal Question in Credit and Debt Law in California
Credit card fraud responsibilities
Reciently we (Standard Meter Lab) took an order over the internet (eMail) for products which were paid for by a credit card that was supplied by the customer. We processed the transaction and shipped the product out of the country to Indonesia. 2 weeks later we recieved a call from the card holder who has no affiliation with the customer stating they did not place the order and wanted us to credit their account.
Question: The transaction was approved and money credited to our account. As a result we shipped the product. The dollar amount is just over $10,000.00.
We contacted our business insurance agent and he told us we have not sustained a loss because the credit card company approved and processed the transaction. And that the person who's card was used should take it up with the credit card company it is their responsibility. Is this true? Or will we in the long run have to credit that persons account and eat the loss.
2 Answers from Attorneys
Re: Credit card fraud responsibilities
The credit card company should bear the responsibility since they did approve the purchase. You will probably face some sort of grievance procedure with the creditor. Good luck-Martin
Re: Credit card fraud responsibilities
As long as you followed the rules for the charge, the actual cardholder has a dispute with his card company. Your account is right. You did nothing wrong. Don't get defensive.
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