Thirty-five Reasons to Be Upset

've been on both sides of this game; while I'm just about out of the ISO side, I'm also a merchant.

Awhile back, someone registered to start selling on my Web site, an auction site called eBuysUSA.com . He placed his credit card on file, a requirement for all sellers, and we validated the card for $1 to verify the address. It was accurate, and matched the CVV2 as well.

A few months later, I received a chargeback notice from my processor, saying that he didn't recognize the charge and that it was fraudulent. The processor charged my account back for the original $1 as well as a $35 chargeback fee.

I was never notified about this transaction other tha[n] to advise me that they had charged my account back.

My question is: Do they have the right to just help themselves to your bank account?

I would have gladly returned the $1, but instead the processor found it more profitable to chargeback my account in order to hit me with a $35 fee.

How can I get my $35 back? What's a merchant to do?

- topbodz

topbodz:

We suggest that you contact Attorneys Tony Ogden (West Coast) or Adam Atlas (East Coast) regarding your contract questions. Both specialize in issues surrounding all areas of payment transactions. They contribute regularly to The Green Sheet through the "Legal Ease" column for our publication; Ogden also wrote the book "What Every Business Should Know About Accepting Credit Cards." E-mail Tony at tony.ogden@bankcardlaw.com or Adam at atlas@adamatlas.com .
- Editor

Getting a Handle on Small Business Processing

I'm starting a business selling my hand-made handbags. Right now I'm a start-up and anticipate sales being at least $100,000 and going up from there. How do I find a processor willing to take on a small start-up account like mine? There are so many in your magazine; can you recommend one in particular I should contact?

- (Phoned in from New York City)

Thanks for your inquiry. We do not make recommendations like that. We suggest that since you receive The Green Sheet, study the ads to see if they contain information that might help lead you to finding a good match for your processing needs. The Resource Guide is also an excellent resource.

If you're registered with GS Online, post your question on both the MLS Forum and Ask The Green Sheet. You might get some very helpful responses from participants.

- Editor