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| <JHJ>
|
how we handle (or prepare to handle) any problems arising out of chargebacks, etc. First, we have never had a chargeback. Second, I am told that because we use our bank as the liaison to the processor, they can go to bat for us, and apparently do. In other words, if your bank likes you they have the clout with the processor to "bend" the processor to our way of thinking. Consider this when you are shopping for the lowest possible discounts and switching processors to save a few pennies. Third, I must also admit that we are not a taxicab company and get very few ASAP calls for cars, and we do little night-out or event business, so our exposure to these problems is minimal. Fourth, we never impress a credit card in a car - just our philosophy that we don't turn the ride into a business transactions. Sure, we greatly increase our exposure, but it is our "thing" to do it that way.
Now, having said that, we have tried to prepare for the eventuality that someone is going to try to zing us by making sure that every non-regular (especially one-ride customers) customer gets into his or her hand a document with our "terms of carriage" on it and which provides that by riding with us they accept the terms (sort of like opening a shrink-wrap software box). Among those terms is a provision whereby they consent to the jurisdiction of the courts in Pittsburgh, and that if we have to sue them they agree that we can include the costs and expenses of doing so, including our ACTUAL attorneys' fees. This can turn a dispute over a few hundred dollars into thousands of dollars worth of exposure to a customer who tries to dick you around. And such provisions are enforceable in most states (Ohio is an exception that I am aware of - where contracts to pay attorneys' fees are frowned upon by the courts). If you design your contract properly, it will go a long way toward thwarting those who will try to screw you around. A good national trade association would have a working committee that promulgates and revises such legal forms - too bad we don't have one in our industry. I offered to write a series of articles for LimoDigest on the contents of contract forms in the industry (in response to their inquiry if I would author an article for them), but they didn't bite. I guess this subject is more in depth than the industry mags are looking for to fill the space between their advertisements - of which there is a growing amount due to the Lincoln fiasco, the recession and the 911 events. I guess it will have to wait until I have the time to kick off the North American Limousine Association (NALA). quote: James H. Joseph Pegasus Chauffeured Motor Cars Pittsburgh, Pennsylvania jhj@pegasus-pittsburgh.com |
| <JHJ>
|
where the bank simply does not find it cost effective to retain legal counsel and go to a hearing. As the amount of the chargeback goes up, the more likely it is that they will appear and defend, however. What the bank is, however, most likely to do is terminate your merchant agreement and send you packing to another processor. The notion, however, that your processor can be liable to back-charging your account is fundamentally flawed. When the processor "approves" a charge, it is only saying that the card is good and the charge is within the credit limit so that when you process the "sale" the amount of money "approved" will be available. This has absolutely nothing to do with the processor "guaranteeing" payment for the customer if he has a beef with your service. You can unscrupulously use the legal system to extort money from large companies in the circumstances you describe, but this does not mean that your claim is legally sound. I might add, however, that this technique is no different than the customer who uses your service and then complains to his credit card issuer and has you charged-back. Both are their own form of extortion - or, more simply, theft.
quote: James H. Joseph Pegasus Chauffeured Motor Cars Pittsburgh, Pennsylvania jhj@pegasus-pittsburgh.com |
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