What can we do if my husband and I own a business but a client has had a stop put on their credit card yet still as our merchandise?

We sell fire safety products. We have a customer who we have proof of purchase and texts and email correspondence with him. He has filed a fraudulent use on his credit card against us saying his card was used without his knowledge. Our merchant services that processed the card denied his report the first time because of the proof we gave. He filed again and they say its out of their hands. So now he gets no charges and keeps our products while we are stuck paying back over $2500 to our credit card processinng company. Do we have any legal leg to stand against him to get our products back?

Asked on November 6, 2014 under Business Law, Missouri


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Yes, you can sue him to recover the money (what he should pay for the products): you would sue him for breach of contract (not honoring his obligation to pay for the goods), unjust enrichment (it is unfair for him to keep goods without paying for them, and so he is "unjustly enriched"), and possibly also fraud (lying about his intention to pay for the goods. For $2,500 or so, you are probably best off filing a case in small claims court, acting as your own attorney (pro se).

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