Happy to note that JPMorgan Chase is a named defendant in our multi-billion dollar merchant antitrust interchange fee litigation. [They own the credit card processing service we use (Chase Paymentech)].
Our company, founded in 1990 services customers across the country and internationally. One thing we have nearly never experienced were chargebacks – when a cardholder disputes an electronic payment transaction.
In all the year’s we have had, maybe, a handful of chargeback requests and most are resolved in the same way. For instance, on January 14th, we had a Visa chargeback for $103.50 due to what the customer claimed was a “duplicate processing fee.” In actuality, the customer ordered photo scans and then a separate, nearly identical charge for online photo printing from their digital files.
On January 29th the issue was resolved in our favor and the reversal applied to our account, less a $10.00 fee. Chase Paymentech explained that we are still responsible for paying this processing fee from the chargeback.
This is another example of the bank-controlled credit card associations nickle-and-diming its customers. Shouldn’t these excessive fees be covered by the already “Way Too High” merchant interchange fees that millions of merchants like us pay, which accounts for nearly $40 billion in fees each year?
And to think: if our customers ever called us and questioned an unfair fee how we would handle it. Then again, we are not part of a giant cartel which stands accused of anti-competitive, illegal price-fixing.
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