Contact Us for a Free Consultation (818) 325-0570

Unauthorized Transactions

Unauthorized transactions present complex and challenging issues for business owners as they can have significant financial and reputational impacts on them. If you are worried your payment processing provider is approving unauthorized transactions, contact Sigal Law Group today. Our merchant processing litigators have years of experience with such issues and will be able to get you the remunerations you need.

What is an Unauthorized Transaction

Unauthorized transactions occur when someone makes a purchase without the cardholder's consent. This can happen for various reasons, such as:

·        stolen card information

·        identity theft, or

·        “friendly fraud,” where the legitimate cardholder disputes a charge they actually made.

The first step a merchant must take when faced with unauthorized transactions is to ensure they have robust fraud prevention measures in place. These methods should include cutting-edge technology, like machine learning algorithms and AI, to detect and prevent fraudulent activities. Tools like these can not only analyze transaction patterns and assess risk in real time, but they can also flag suspicious activities before they cause a financial loss for the business.

However, even with the best prevention methods, unauthorized transactions can still occur. When this happens, business owners must be prepared to navigate the complex world of chargeback disputes – which is where having a skilled legal team becomes invaluable.

How to Defend Against Unauthorized Transactions

One key aspect of defending against unauthorized transaction claims is maintaining thorough documentation. This includes transaction logs, customer communication records, and evidence of delivered goods or services. In many cases, the ability to provide comprehensive evidence can make the difference between winning and losing a dispute.

Moreover, it is crucial to understand that the burden of proof often falls on the merchant to prove that a transaction was authorized and legitimate. This makes keeping thorough documentation all the more important for your case to be successful.

As experienced merchant processing litigators, the Sigal Law Group has helped businesses deal with such issues. Contact our offices today for a free consultation.

Menu