What recourse do I have as a small business owner, if I given approval on a credit card but am now not getting the money do me since the card was no good?

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What recourse do I have as a small business owner, if I given approval on a credit card but am now not getting the money do me since the card was no good?

A customer recently made approximately $1200 in purchases at my shop. She paid for these purchases with a credit card. I check her driver’s license to verify that her’s was the name on the card issued by Metabank. I than swiped it on my Verifone credit card approval station and received an approval, so the transaction went through. I have since received notice from Metabank that the card was not good and they would not pay me the monies due for the transaction. In so much as Verifone approved this transaction, and charges me a fee for every transaction, are they not liable?

Asked on September 7, 2013 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

No, they would not be liable if they were not paid the funds; they are not liable or resonsible for the other party's failure to pay. Your recourse is to sue that person for the amount she owes you as well as any additional costs or charges you incurred.


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