As a business owner, do I have the right to run a contracted customer’s credit card for a past due balance on completed transaction without their permission?

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As a business owner, do I have the right to run a contracted customer’s credit card for a past due balance on completed transaction without their permission?

Custom product delivered and accepted, then customer requested that I not run their credit card for the balance because they “felt the item was now low quality/not worth the contracted price”. Item was produced for an event date which has already passed.

Asked on May 17, 2012 under Business Law, Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Even though you have a contract for a product created for and delivered to a client, you are not legally allowed to enter a credit card charge for such a product on the customer's credit card without the customer's permission even though you have the credit card information to do so.

You can do so, but most likely the customer will contest the charge on his or her credit card. If the customer is not paying, your recourse is to make a demand for payment and if payment is not made, file a legal action.


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