Using a saved credit card

davenportms · ‎01-04-2017

We have a customer that ordered a custom-made piece of furniture, paid for the downpayment using a credit card through Square. Upon receipt of the furniture, we allowed her to pay the sum with a personal check. Within 24 hours she decided she didn't like the piece, and stopped payment on the check. There was no reconciliation with this woman. We are out almost $2,200, and as a small business that hurts significantly. Since she had saved the credit card information in the first transaction, we ran the charge for the sum, which of course she is against. Is it legal to run the transaction since she saved her card, and if so what proof can we show her that she had in fact done so and thus authorized its use for the final payment?

ElleAitch · ‎01-04-2017

If you have possession of the stop funded check there is nothing she can do, except dispute the charges through her card company. The check itself proves she agreed to the price and it is illegal to stop payment on a service. If, in the rare instance she actually gets the charges reversed by her credit card company you can take the hot check to the DA. More than $700 makes it a felony. I doubt she will push it.

VanKalkerFarms · ‎01-04-2017

I suggest looking into the laws regarding stop payment checks in your particular state as laws may vary. If you use her credit card, she will undoubtedly start a dispute, and then you'll have a whole new mess to deal with. Does she still have the piece you made for her? If she returned it, it may be more difficult to resolve. If she still has it, however, you have more to stand on. Do you have legalese in your order form for situations like this? If not, I'd talk to a lawyer about what kinds of agreements you can make to prevent this from happening again. Good luck!

Bob Van Kalker
My Van Kalker Farms Garden Center website
My Rise'n Roll Bakery Schererville Indiana Facebook Page
My Rise'n Roll Bakery Cedar Lake Facebook Page