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#968694 - 06/03/08 09:49 PM stop pmts on debit transactions??
Anonymous
Unregistered

A customer paid for a magazine subscription by debit card. It is a monthly payment. She called the company to have it cancelled but was told they could not cancel it because they worked for a second company whom they had already paid in full for the service. Customer wants to put a Stop Payment on the item. Is this possible and if so, how do we return the item? We cant return it as a normal ACH draft, right?? We're new to the debit card scene by the way.

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#969475 - 06/04/08 07:57 PM Re: stop pmts on debit transactions?? Anonymous
remerson Offline
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Joined: Nov 2006
Posts: 21
Our Check Card agreement states: "You cannot place a stop payment on any transaction made with your Check Card".

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#969523 - 06/04/08 08:49 PM Re: stop pmts on debit transactions?? remerson
RR Sarah Offline
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RR Sarah
Joined: Mar 2004
Posts: 2,505
Up North
You need to call the company that processes your debit card transactions. You may be able to process a chargeback but it sounds like this one would be kind of tricky because your customer did authorize the payment initially.
_________________________
Sometimes you have to burn a few bridges to keep the crazies from following you.

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#969549 - 06/04/08 09:14 PM Re: stop pmts on debit transactions?? RR Sarah
ktac MITCH Offline
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ktac MITCH
Joined: May 2005
Posts: 1,813
Giant side of TX
Sounds like the customer Authorized a monthly payment, and now has attempted to inform the company that they are revoking that authorization for future charges.
It is a Reg E dispute and you need to treat is as such & file with your processor using language similar to . . .
The Merchant continues to charge (debit) my account for services I cancelled on _____________________ (date).
Method of cancellation was _________________________________ (i.e. phone, certified letter, in person).
_________________________
My opinions are just that, and might be worth what you paid for them.

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#971964 - 06/09/08 09:21 PM Re: stop pmts on debit transactions?? ktac MITCH
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Even though you're dealing with a debit card transaction, it qualifies as a pre-authorized EFT under the definition of that term in Regulation E. Accordingly, your customer has a stop payment right and you need to get with your debit card processor to block those transfers. If any of the transfers make it through, you will need to do a chargeback under the MasterCard or Visa rules.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

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