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Stopping Auto Debits For Closed Accounts

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Question: 
I have many customers who have used their debit card for monthly debits such as to a satellite provider or Internet service provider. After they close their account, these transactions still try to hit. I have closed the debit cards and even hotcarded them but these companies still force the transactions through. When I dispute the transaction, the company says they will not honor the dispute without the cardholder's signature... yet most of the time we have closed the account due to negative balances. Is there any way around this? Can we not stop these companies from steadily forcing payments through closed accounts and cards?
Answer: 

If you have truly hotcarded these card numbers (placed them on the MasterCard or Visa negative card file), you should be able to force the merchant to take back the transaction, provided that you use the correct chargeback codes. Check with your credit card operations people, or the provider that handles these transactions for you, to determine how to charge the items back.

First published on BankersOnline.com 9/15/03

First published on 09/15/2003

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