Law Firm to take on Banks?

Originally posted by JLwithdraw ↑

The banks are complicit in a multi million dollar world wide credit card scam involving on line fraud and I will expose them.
It works like this: People have their card stolen or skimmed, this happens to thousands possibly millions of people around the world.
The cards are then used to purchase online products through web sites or other outlets. The law abiding online merchant where the scam is perpetrated ships the goods ordered to an address on the order, bear in mind the transaction is approved by the banks and a clearing house before approval is given to the merchant to ship the goods.

Three to 4 weeks later Mr or Mrs Bloggs checks his/ her credit card and realizes that his or her card has been used fraudulently, the banks track down the merchant and advise they are going to refund Mr Bloggs, they take the money for the transaction out of the Merchants account and credit Mr Bloggs and then charge the Merchant a charge back fee.

After the banks and the clearing house get their fees the merchant not only loses his goods he has shipped out but also gets charged these fees.

The banks give the impression that they do the refund; they don't as alluded to, the client is happy because he gets his money back, thinks the banks are great and on it goes.

The crooks know it will take 4 to 6 weeks for something to be done, they have got their goods and moved on the banks get their money and allow it to happen over and over again

Because the Merchant is a disparate entity they have no group support and cop the losses with nowhere to go.

This is a massive scam and I will reiterate, the Banks are complicit. I have accused them of this several times and they won't sue me because it is the truth.

Something needs to be done and I can cite many many examples and many traders that have been affected.

Expand

This is not new and it's a massive threat for merchants.

That happened to me when I had my own business about 15 years ago.

I was defrauded of $40k over two transactions. We had received approval from the bank for the transactions over the phone.

When we were advised that the cards were stolen I queried why the approval did not apply. I was referred to my merchant contract. It clearly stated in a highlighted box something like this from memory:

" A merchant accepting a card when the person using the card is not present accepts the risk that the person presenting has authority to do so. Approval of the transaction relates to the fact that the card exists and that it has sufficient funds. It does not approve the validity of the presenter. A merchant accepting a card over the phone runs a risk that the card is being used dishonestly"

At the time when I asked friends in business if they thought approval guaranteed the transaction they all thought it did.
Once the bank took the write back they were not interested in chasing the thief. Neither was the local police, federal police or international authorities. My thieves were from Indonesia.
To be fair the bank allowed me time to pay it off.