Merchant E-Solutions

Review: On July 5th 2012 I accepted a Visa charge card from [redacted] for two charges of total $100. Mr [redacted] upon receiving the monthly bill disputed the charge not recognizing my company name of Rods Wraps. I then called Mr. [redacted] and reminded him of what he had purchased he remembered the transaction and was very apologetic to me. He said he would go directly to his bank and get it straightened out. That afternoon he called and told me he went to his bank and they told him they would take care of it. I have faxed the company a copy of the signed visa receipt and called them many times only to be told to write a letter of what happened and they would have to get a letter from Mr. [redacted] and would take 45 days for me to get my money back that they took. I do not think they should be able to take money from your bank when ever they want and not pay it back till they get ready to.Desired Settlement: Get my money back in my bank along with the bank charges they charged my account with.

Business

Response:

Dear Mr. [redacted],

Thank you for forwarding this complaint to us for review. This information was provided to [redacted], our Chargeback Manager, for review, due to the nature of the complaint. I have attached her response and supporting documentation.

We hope that this serves as satisfactory explanation and closure of this matter. Thank you.

Best Regards,

Customer Service Manager

Merchant e-Solutions

*Copy of response (also attached):

This response addresses the following concerns of the Merchant:

Type of dispute and that cardholder did not cancel

Debit to merchants account for the chargeback/dispute and the fees associated to working a chargeback.

1. The cardholder is disputing fraud on his visa card and stating this is due to a lost card. While the merchant may believe the individual whom he spoke with to be Mr. [redacted], as of today 8/20/12, Mr. [redacted] has not cancelled these two disputes with his bank. In fact, Mr. [redacted] continues to dispute these charges as fraud stating he did not authorize them. Please see attached Visa chargeback questionnaires:

· Chargeback Questionnaire: ROL Case Number 1210436728

· Chargeback Questionnaire: ROL Case Number 1210436

The cardholder is stating that the card was lost and used fraudulently:

Account number used was fictitious or no valid card, and no authorization was obtained

Date Fraud Activity was reported through VisaNet: 07/24/12

Date of listing on Exception File: 07/23/12

What was the status of the card at the time of transaction? Lost

2. When a cardholder files a dispute claim against a merchant, the merchant’s processing company (Merchant e-solutions (MeS)) debits the merchant’s depository account for the amount of the chargeback/transaction being disputed; this is outlined in their merchant agreement in section: page 6, section 19 Chargebacks.

Here is the verbiage:

19. CHARGEBACKS. Merchant is responsible for any and all Chargebacks, as well as Association fines, assessments and fees related to or arising out of such Chargebacks, and will pay Bank, upon demand, the face amount of any Chargebacks. Merchant shall reimburse Bank for any Chargebacks, return items, or other losses resulting from Merchant's failure to produce a Card Transaction record requested by Bank within the applicable time limits. Bank shall have the right to debit Merchant's incoming Chargebacks, through the DDA or any other funds of Merchant or of any Guarantor in Bank's direct or indirect control by reason of the security interest granted to Bank by Merchant pursuant to Paragraph 23 hereinbelow, and to charge such Chargebacks to Merchant, including without limitation, and by way of example, in any of the following situations: (a) Where goods have been returned or services canceled by a Cardholder and the Cardholder requested a Credit Record and such Credit Record was not processed by Merchant within three (3) Business Days; (b) Where the purchase has not been Authorized in advance by the Authorization Center as required hereunder or by the Rules and the Transaction was charged back by the Issuing Bank; (c) Where the Transaction is for a type of Product sold other than as disclosed in the Merchant Application portion of this Merchant Agreement and approved in advance by Bank and the sales Transaction was charged back; (d) Where a Cardholder contends or disputes in writing to Bank or the Issuing Bank that: (i) Products were not received by the Cardholder; or (ii) Products received by a Cardholder do not conform to the description on the Sales Record; or (iii) Products were sold in a misleading fashion or manner by Merchant; or (iv) Products were defective; or (v) The dispute reflects a claim or defense authorized against issuers or creditors by a governmental agency, a relevant statute or regulation; (e) Where a Sales Record or Credit Record was not received by Bank as required in accordance with the terms of this Merchant Agreement; (f) Where the Sales Record was not completed as required by this Merchant Agreement or the Rules; (g) Merchant failed to obtain specific Authorization in advance from the Authorization Center to complete the Transaction and/or the Cardholder has certified in writing to Bank or the Issuing Bank that the Cardholder did not make or authorize such Transaction; (h) Where the signature on the Sales Record is obviously different from the signature appearing on the signature panel of the Card and the Sales Record is charged back; (i) Where the Issuing Bank or the Bank has information or belief that Merchant fraud occurred at the time of the Transaction(s), whether or not such Transaction(s) was properly Authorized by the Issuing Bank, and the Cardholder neither participated in nor authorized the Transaction(s); (j) In any other situation where the Sales Record was executed or depository credit was given to Merchant in circumstances constituting a breach of any representation or warranty of Merchant or in violation of the Rules, whether or not a Transaction is charged back by the Issuing Bank. If, with respect to any one of Merchant's outlets, the amount of any Card counterfeit or fraud incidences becomes excessive, in the sole and absolute discretion of Bank, Merchant may be charged back for all Transactions, terminated immediately for cause, and Merchant's funds, including but not limited to those incoming Transactions and in Merchant's DDA and Reserve Account shall be held pursuant to the provisions of this Merchant Agreement, including without limitation pursuant to the provisions of Paragraphs 20 and 21 below. Merchant agrees to accept and understands that it is responsible for all Chargebacks and understands that some Chargebacks cannot be rebutted or remedied. Merchant understands that Bank will assess a Chargeback Fee for each Chargeback plus the amount of any Chargeback fines or penalties assessed by VISA or MasterCard against the Bank for Transactions arising from the activities of Merchant, or any other charges as may be established by Bank from time to time. Furthermore, Bank may assess Merchant a fee for processing any fines or penalties that may be charged by VISA or MasterCard at the sole and absolute discretion of Bank. If the actual Card is "not present", Merchant understands and acknowledges that Merchant bears one hundred percent (100%) of the risk of Chargeback under the Rules, for all Card Transactions and any fees resulting from such Card "not present" Transactions and hereby agrees, without limiting any other provisions in this Merchant Agreement, to hold Bank harmless from any losses, claims, and costs arising from or associated with all such Card Transactions, including any Authorizations.

The merchant responded to the chargebacks providing MeS with rebuttal documentation as instructed in the Chargeback Notification Letter, which includes a copy of the signed visa receipt. However, the cardholder continues to dispute and these chargebacks and clearing states that he did not authorize these purchases. The receipt was signed by an individual perpetrating the cardholder.

This VISA chargeback reason code 83: Fraudulent Transaction – Card – Absent Environment which states that the merchant processed a transaction in a Card Absent environment without cardholder permission or with a fictitious account.

The process time limit for this reason code is: 120 calendar days from the Central Processing Date (CPD). If the transaction receipt was requested with 120 calendar days of the CPD, the processing time limit is 45 calendar days from one of the following:

Receipt date of the Transaction receipt

The 30-calendar-day waiting period (if the fulfillment was not received)

Date a non-fulfillment message is received