Legal Question in Business Law in Massachusetts

As a business, we have new customers provide a credit card, and let them know that they are net 15, and on the 16th day we will charge the card automatically for their due bill. Are we legally able to run that card any time that customer gets service by us, if they approved the original terms to have it kept on file


Asked on 3/09/23, 10:45 am

1 Answer from Attorneys
Frank Natoli Natoli-Legal, LLC

If I understand you correctly, this is no different from companies that use "auto renewal" terms for services. So long as the customer assents to your terms, I see no issue with that. I keep my clients' cc info on file and automatically charge their accounts for certain contracted for services such as quarterly trademark monitoring, for example.

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Answered on 3/09/23, 11:19 am


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