Mackay Chapman’s Post

Our latest update on Amex personal guarantees on alleged joint Business Cards #personalguarantee

💳 Beginning on February 11, merchants in New York will be required to disclose the highest amount a consumer might pay in credit card surcharges. They'll also be required to limit surcharges to the amount their credit card processors charge. Corporate Partner Christina Jurkiewicz Grigorian discusses the new "Disclosure Law" and its implications, including the $500 per violation penalties. Read the advisory. ⬇️ #CreditCards #Surcharges #CorporateLaw #Consumers

Did you get a chance to read our newest blog about banking overdraft fee lawsuits? https://lnkd.in/gAP7aktY Let us know what topics you'd like us to cover in the comments! #johnsonfirm #classaction #overdraft #lawfirm #legal

Today, I would like to discuss chargeback disputes and the concept behind them. A chargeback occurs when a cardholder disputes a transaction with their bank, requesting a reversal of the payment. This process is typically initiated when the cardholder believes a transaction was unauthorized, fraudulent, or unsatisfactory. chargeback is the return of funds to a cardholder's account after they dispute a transaction. A dispute arises when there is a disagreement between the cardholder and the merchant regarding a transaction. There are four categories of disputes: Fraud – When a transaction is unauthorized or fraudulent. Authorization – Issues with transaction authorization, such as no approval for the charge. Processing Error – Mistakes in the transaction process, including late presentment, incorrect transaction code, currency, or account number. Consumer Dispute – Situations where the service was not received, or the cardholder believes value was not provided as expected. Stages of Dispute: Chargebacks: International transactions: 30 days to respond. Domestic chargebacks: 48 hours to respond. Second chargebacks: 72 hours to respond. Pre-arbitration: 30 days to respond. Arbitration: 10 days to respond. After a dispute has been contested, the parties involved either agree to a settlement or process a refund, resolving the issue.

Chargeback is never lost just at the first try. Hence, the reason for a second chargeback. A second chargeback, also known as pre-arbitration, occurs when the issuing bank initiates another chargeback on the same disputed transaction after a merchant disputes the first chargeback. This can happen for several reasons: There is new information from the cardholder. There is a change in the chargeback reason. The documentation provided by the merchant is incomplete, invalid, or not compelling. When the issuing bank notifies the acquiring bank of the second chargeback, this information is passed to the merchant, who is again given the opportunity to accept or contest it. If a merchant decides to contest the second chargeback, the acquiring bank requires the merchant to provide further compelling evidence to win the dispute. Additionally, if the merchant declines the second chargeback/pre-arbitration and the issuer still deems the provided documentation as not compelling or invalid, the issuer can proceed to arbitration. During arbitration, the card scheme will make a final ruling. In the arbitration ruling, the losing party will forfeit the dispute amount and also be penalized/charged with a specific fee as agreed upon for the arbitration process. #fintech

🔊 The FCA has banned an individual from working in regulated financial services after being convicted for fraud and dishonesty. Also, the individual failed to notify the FCA of the criminal conviction. 👉 This is another example of the FCA finding an individual not to be fit and proper to perform functions in relation to regulated activities. The individual in this case was not honest and lacked integrity. 👉 Individuals performing senior manager functions or controlled functions must be honest, act with integrity and be of good repute. These factors along with competence and capability and financial soundness are taken into consideration during fit and proper assessments. 👉 This example along with others show how important fit and proper and the wider SM&CR processes are. ✍ If you require assistance with a compliance audit to check your SM&CR arrangements then please get in touch and I can assist with this!

Chargeback is never lost just at the first try Hence, reason for a second chargeback A second chargeback, also called pre-arbitration, occurs when, after a merchant/acquirer declines/ represent the first chargeback, the issuing bank pushes another chargeback on the same disputed transaction for any of the following reasons: Their is new information from the cardholder Their is a change to the chargeback reason The documentation provided by the merchant is incomplete, invalid or was not compelling. When the issuing bank notifies the acquiring bank of the second chargeback, and that information is passed to the merchant, the merchant is again given the opportunity to accept or contest. If a merchant decides to contest the second chargeback, the acquiring bank requires the merchant to provide further compelling evidence in order to win the dispute. Also if the merchant declines the second chargeback /pre arbitration and the issuer still see the document provided as not compelling or invalid, the issuer can proceed to Arbitration where the card scheme will now engage in the final ruling. In the Arbitration rulling, the losing party will forfeit the dispute amount and also be penalized/charged with a certain communicated fee as agreed for the arbitration process. #bank #fintech

Small businesses may struggle to quickly and easily handle disputed transactions from customers. Read these tips from Visa Canada for protecting your business from chargebacks and potential fraud.

Chargebacks /Dispute. Chargebacks is return of fund to cardholder account. Dispute is disagreement between the cardholder and merchant. There are four categories of dispute. Fraud. Authorization. Processing error; could be late presentment, incorrect transaction code or currency or account number. Consumer dispute; could be service not received, or value was not given,   Stages of dispute. Chargebacks Second chargebacks Pre-arbitration. Arbitration.

𝐁𝐨𝐦𝐛𝐚𝐲 𝐇𝐢𝐠𝐡 𝐂𝐨𝐮𝐫𝐭 𝐂𝐥𝐚𝐬𝐬𝐢𝐟𝐢𝐞𝐬 𝐅𝐢𝐱𝐞𝐝 𝐃𝐞𝐩𝐨𝐬𝐢𝐭 𝐑𝐞𝐜𝐨𝐯𝐞𝐫𝐲 𝐃𝐢𝐬𝐩𝐮𝐭𝐞 𝐚𝐬 𝐂𝐨𝐦𝐦𝐞𝐫𝐜𝐢𝐚𝐥 𝐃𝐢𝐬𝐩𝐮𝐭𝐞 In a recent landmark judgment, the Bombay High Court has ruled that a dispute arising from the recovery of a fixed deposit is a commercial dispute. This case involved a massive Rs. 36 crore fixed deposit placed by a customer with the State Bank of India (SBI). 𝐓𝐡𝐞 𝐂𝐚𝐬𝐞: The plaintiff, a depositor with SBI, alleged that an employee of the bank fraudulently withdrew their fixed deposit of Rs. 36 crore. They filed a Commercial Summary Suit seeking recovery of the amount with interest. SBI, however, contested the classification of the dispute as commercial and sought its dismissal. 𝐓𝐡𝐞 𝐀𝐫𝐠𝐮𝐦𝐞𝐧𝐭𝐬: *𝐒𝐁𝐈'𝐬 𝐀𝐫𝐠𝐮𝐦𝐞𝐧𝐭: The bank argued that the suit involved fraud and embezzlement, taking it outside the purview of a commercial dispute under the Commercial Courts Act. *𝐏𝐥𝐚𝐢𝐧𝐭𝐢𝐟𝐟'𝐬 𝐀𝐫𝐠𝐮𝐦𝐞𝐧𝐭: The plaintiff countered that placing a fixed deposit is a standard banking transaction, making it a commercial activity. Furthermore, they emphasized the use of fixed deposit receipts, which are considered mercantile documents. 𝐓𝐡𝐞 𝐂𝐨𝐮𝐫𝐭'𝐬 𝐃𝐞𝐜𝐢𝐬𝐢𝐨𝐧: The court sided with the plaintiff, holding the dispute to be commercial under Section 2(1)(c)(i) of the Commercial Courts Act. This section broadly defines commercial disputes to include those arising from: *Mercantile transactions *Enforcement of mercantile documents *Banking transactions 𝐓𝐡𝐞 𝐜𝐨𝐮𝐫𝐭 𝐨𝐛𝐬𝐞𝐫𝐯𝐞𝐝 𝐭𝐡𝐚𝐭: *The relationship between the parties was that of a creditor (depositor) and a debtor (bank). *The dispute arose from the enforcement of fixed deposit receipts, recognized as mercantile documents. *The alleged fraud did not alter the fundamental nature of the transaction (depositing money with a bank). 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬: This judgment clarifies that disputes arising from the recovery of fixed deposits, even when fraud is involved, can be classified as commercial disputes under the Commercial Courts Act. This allows for faster resolution through specialized commercial courts. 𝐀𝐝𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 𝐍𝐨𝐭𝐞𝐬: *The court acknowledged the pending criminal proceedings against the bank employee but maintained that these wouldn't affect the commercial character of the dispute. *The case highlights the importance of clear categorization of disputes under the Commercial Courts Act to ensure efficient resolution through the appropriate legal channels. #bombayhc #commercial #disputes #courts #legalresearch