Legal Question in Business Law in Georgia

We were recently terminated by our merchant services company, First Data who have approx. $24,000 in sales they are going to hold for up to 6 months to protect against chargebacks. We've had to take a deep breath and accept not having access to these funds for up to 6 months. However, we are unable to issue refunds for mounting customer returns because First Data has totally closed our account and they (or the reseller) have not given us any direction on how to process returns. First Data will charge us $25 per chargeback and these refunds will of course become chargebacks if not issued in a timely manner and I can see First Data charging us these fees to reduce our funds they are holding. Furthermore, they informed us that if the account doesn't experience chargebacks within 3 months they will release half the monies. The power of these merchant services companies is quite intimidating.

Asked on 9/03/11, 8:13 am

Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

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0 attorneys agreed

Agreed, but either way you need to look at the contract to see your rights and their obligations.

Answered on 9/04/11, 5:59 am

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