Thomas Dati
asked on
Credit card charge back language
Is it legal to add this language (or something similar) to our purchase agreement?:
WAIVER OF CREDIT CARD CHARGE DISPUTE RIGHTS
Purchaser further acknowledges that Company is accepting their credit card as payment for its Product as a convenience to Purchaser. Should the Purchaser desire to not enter into this waiver, Company is willing to accept personal and business checks, wire transfers and cash as alternate forms of payments (wire instructions are listed below).
Purchaser also understands that a key asset of Company is its relationship with its Credit Card Processors such as MasterCard, Visa, American Express and Discover Card. Furthermore, Purchaser realizes that the disruption of that relationship by Purchaser filing a credit card dispute related to their Product purchase with the Credit Card Processor will cause irreparable damage to Company in an amount greater than $10,000 (Liquidated Damages).
Therefore those who purchase via credit card agree as a fair and equitable alternative, to elect any conflict of payment as it relates to goods purchased via credit will be subject to binding arbitration, irrevocably, without exception and without recourse, by a professional 3rd party arbitrator.
If presented with a chargeback, Company reserves the right to pursue a collection action against the Purchaser for the Liquidated Damages amount defined herein.
WAIVER OF CREDIT CARD CHARGE DISPUTE RIGHTS
Purchaser further acknowledges that Company is accepting their credit card as payment for its Product as a convenience to Purchaser. Should the Purchaser desire to not enter into this waiver, Company is willing to accept personal and business checks, wire transfers and cash as alternate forms of payments (wire instructions are listed below).
Purchaser also understands that a key asset of Company is its relationship with its Credit Card Processors such as MasterCard, Visa, American Express and Discover Card. Furthermore, Purchaser realizes that the disruption of that relationship by Purchaser filing a credit card dispute related to their Product purchase with the Credit Card Processor will cause irreparable damage to Company in an amount greater than $10,000 (Liquidated Damages).
Therefore those who purchase via credit card agree as a fair and equitable alternative, to elect any conflict of payment as it relates to goods purchased via credit will be subject to binding arbitration, irrevocably, without exception and without recourse, by a professional 3rd party arbitrator.
If presented with a chargeback, Company reserves the right to pursue a collection action against the Purchaser for the Liquidated Damages amount defined herein.
Dave Baldwin
I don't know if it is illegal but I do know that the credit card companies have their own rules on these things. This is the link to the PDF from VISA on the subject: https://usa.visa.com/dam/VCOM/download/merchants/chargeback-management-guidelines-for-visa-merchants.pdf
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