Legal Question in Business Law in Pennsylvania

Unsatisfied customer

Family owned business catered a function for a new customer who never questioned the cost. Post function customer made numerous complaints addressed in correspondence which to which we responded. Three months later customer issued a chargeback to the credit card issued for the function and our bank deducted $2000 from our account. This was all done without notice until we learned through our merchant credit card company that we would be receiving correspondence regarding the dispute.

Does this happen often? It has never happened to us before. Need to know why the bank deducted these funds without notifying us.

Thank you so much for your help.


Asked on 5/17/07, 8:49 pm

1 Answer from Attorneys
Matthew Kelly Kelly Law

Re: Unsatisfied customer

I suspect as a part of your merchant credit card contract you have authorized them to do it. The credit card companies routinely do these types of things as they feel they are merely a conduit between you and your customer and not responsible to you for payment. This sounds like a breach of contract on behalf of your client, possibly fraud, possibly theft of services (liken it to paying with a check and then stopping payment after you recieve the merchandise).

You need to reach out to client and firmly tell them that based on the written contract (that I know you have) they are obliagted to pay the money and any costs related to their debiting your account.

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Answered on 5/18/07, 8:34 am


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