What protection when merchant mistakenly make unauthorised order to credit card?

klarklar

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I just received a SMS on an order to my credit card for >USD200 from a merchant that I purchased from in the past. It is unauthorised and clearly a mistake from the merchant. I called up the bank and the customer service officer told me to resolve the dispute with the merchant as I have purchased before from the merchant. I am sure the dispute will be resolved because the merchant is a reputable one. The merchant is probably screwed up, but not dishonest. I asked the customer service officer "Am I still liable to pay the amount deducted from a merchant whom I have purchased something before even if it is unauthorised?" I did not get a satisfactory answer as the customer service officer repeated the same message and told me to contact the merchant. What if the merchant deduct USD10k from my credit card? Am I still liable?

Anyone here experienced the same thing? What protection do consumers have against incompetent or even fraudulent merchants who deduct money from our credit cards by careless mistake? Just because we have bought something from them before, they get authorisation to deduct any amount they want from our credit card? Isn't this very dangerous?
 
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swordspirit

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I just received a SMS on an order to my credit card for >USD200 from a merchant that I purchased from in the past. It is unauthorised and clearly a mistake from the merchant. I called up the bank and the customer service officer told me to resolve the dispute with the merchant as I have purchased before from the merchant. I am sure the dispute will be resolved because the merchant is a reputable one. The merchant is probably screwed up, but not dishonest. I asked the customer service officer "Am I still liable to pay the amount deducted from a merchant whom I have purchased something before even if it is unauthorised?" I did not get a satisfactory answer as the customer service officer repeated the same message and told me to contact the merchant. What if the merchant deduct USD10k from my credit card? Am I still liable?

Anyone here experienced the same thing? What protection do consumers have against incompetent or even fraudulent merchants who deduct money from our credit cards by careless mistake? Just because we have bought something from them before, they get authorisation to deduct any amount they want from our credit card? Isn't this very dangerous?

there is a chargeback mechanism, though quite tedious and will penalise the merchant if they cant show proof of order from you.
 

elnewbie

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The correct procedure is to initiate the Chargeback process. Tell the CSO if they don't comply, you will take it up witj MAS.

I just received a SMS on an order to my credit card for >USD200 from a merchant that I purchased from in the past. It is unauthorised and clearly a mistake from the merchant. I called up the bank and the customer service officer told me to resolve the dispute with the merchant as I have purchased before from the merchant. I am sure the dispute will be resolved because the merchant is a reputable one. The merchant is probably screwed up, but not dishonest. I asked the customer service officer "Am I still liable to pay the amount deducted from a merchant whom I have purchased something before even if it is unauthorised?" I did not get a satisfactory answer as the customer service officer repeated the same message and told me to contact the merchant. What if the merchant deduct USD10k from my credit card? Am I still liable?

Anyone here experienced the same thing? What protection do consumers have against incompetent or even fraudulent merchants who deduct money from our credit cards by careless mistake? Just because we have bought something from them before, they get authorisation to deduct any amount they want from our credit card? Isn't this very dangerous?
 

Sausage

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last time this happened, a hotel charged me twice by mistake. I got reveresed immediately, but I still lost money because of the exchange rate.
 

klarklar

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last time this happened, a hotel charged me twice by mistake. I got reveresed immediately, but I still lost money because of the exchange rate.

This happened to me exactly. Merchant has refunded me the money but I incurred currency conversion charges.

What protection do we have when this happened?

Even if there is a chargeback mechanism, any fraudulent overseas merchant can deduct a huge amount like $10k and we have to incur currency conversion losses as a result?
 

ceecookie

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This happened to me exactly. Merchant has refunded me the money but I incurred currency conversion charges.

What protection do we have when this happened?

Even if there is a chargeback mechanism, any fraudulent overseas merchant can deduct a huge amount like $10k and we have to incur currency conversion losses as a result?

Call your bank to reverse the transaction fees. This is for refunds on authorized purchases.

For chargeback on bank side, the full amount will be reversed if the case is successful
 
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