A customer of mine has the capability of accepting Credit Card payments over his mobile phone. One charge was disputed by the "authorizing" party. The "authorizing party" stated the card was stolen. The customer received a chargeback notification from the vendor. The Vendor has since then held funds from the customer (4 different deposits) for over 60 days. The customer notified them when it was discovered he was not given credit for the deposits. They just admitted this was their fault and he would be given credit in a couple days. Are they allowed to do this? To hold funds without proper notification or disclosure? Thanks for any feedback.

This arrangement would be covered by the contract between the customer and their credit card processor. This is not a compliance or regulatory related issue. The best advice that you can give your customer is to have their attorney review the language of their contract to see if the vendor has violated it in any way.