Continuous payment authority fraud

minismith

Deleted_User wrote: »

The card provider is the one who does the chargeback. It's not a request.

If the service provider disputes it, they will need to make their case to the card provider.

Thanks. If the service provider fails to dispute the chargeback or the card provider finds the case in my favour, how are the funds reclaimed? Does the card provider have to be able to reclaim them so they can refund them back to me? What if the service provider no longer has any available funds? Does the card provider cover the loss?

[Deleted User]

It just gets credited back to your account, the same way it was debited. It'll come from the service provider's bank.

There's very little to worry about from how you've described the case.

minismith

Deleted_User wrote: »

It just gets credited back to your account, the same way it was debited. It'll come from the service provider's bank.

There's very little to worry about from how you've described the case.

Thanks I hope so.

Is it possible that the service provider may avoid chargebacks by claiming bankruptcy as I suspect they have other debts - staff and venue in arrears.

[Deleted User]

It will still be collected from their bank.

And even beyond that, you have a clear section 75 case.

minismith

Deleted_User wrote: »

It will still be collected from their bank.

And even beyond that, you have a clear section 75 case.

Thanks. I already did some reading on Section 75. Is this protection not limited to payments over £100?

If it comes to that, it is further complicated by the fact the service provider uses 3rd party payments processors. I gather that there is some debate over whether Section 75 applies to these transactions.

shaun_from_Africa

Deleted_User wrote: »

And even beyond that, you have a clear section 75 case.

The amount involved means that S75 wouldn't apply.

minismith wrote: »

For each customer, these monthly payments may be on average around £50,

[Deleted User]

shaun_from_Africa wrote: »

The amount involved means that S75 wouldn't apply.

Good spot. I'd forgotten the value was under £100.

minismith

Thanks for all replies.

Initiated chargeback with Lloyds on the basis of "Services not provided" and any further payments taken under the CPA will be covered. I will have a temporary credit on my card within 3 days. The service provider will then have 45 days to dispute the chargeback before Lloyds claw back the funds from the services provider's bank.

Hopefully that is the end of it.

Mr_Singleton

I doubt the service provider gets the money that quickly.

born_again

minismith wrote: »

I pay monthly in advance by continuous payment authority on my Mastercard credit card for a service. Payments are usually processed within office hours (9am - 4pm) and at the beginning of the month (1st - 4th depending on where a weekend falls).

Recently, the service provider initiated collecting December payments early (29th Nov) and outside of office hours (12:15am). Subsequently a little over 12 hours later, customers were informed by email that no further service would be provided. No further contact with the service provider has been possible.

Can I ask who this service provider is?

How do you know what time they process the transactions? As they will just be a payment process run.
Given the 1st fell on a weekend. It would not be unusual to process on the last weekday of the month.