FTC Sues Chargebacks911 and Alleges Use of Unfair Techniques
BY PYMNTS | APRIL 12, 2023
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Chargeback mitigation company Chargebacks911 has been sued by the Federal Trade Commission (FTC) and Florida.
The lawsuit alleges that the company used unfair techniques on behalf of its clients against consumers who contested credit card charges, the FTC said in a Wednesday (April 12) press release.
“Chargebacks911 helped scammers stay in business and defeat chargeback attempts by consumers hit with fraudulent charges,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in the release. “The FTC will continue to take aggressive action against those who undermine consumers’ ability to exercise their rights.”
Chargebacks911 did not immediately reply to PYMNTS’ request for comment.
According to the complaint filed in federal court, Chargebacks911 sent misleading screenshots to credit card companies, supposedly showing that consumers had agreed to charges they later disputed. In some cases, the screenshots had been edited or showed web pages that were different from the ones on which the consumer made the purchase, the complaint said.
“These practices have likely resulted in consumers being denied chargebacks that otherwise should have been approved,” the complaint said.
The complaint also charges that the company helped its clients reduce the level of scrutiny they received from credit card companies by implementing a system that enabled clients to run numerous small transactions, thereby raising their total number of transactions and lowering the percentage that consumers disputed.
“Chargeback 911’s [Value Added Promotions (VAP)] service enabled fraudulent merchants to evade or delay chargeback monitoring programs, fines, and account terminations designed to protect consumers from fraud,” the complaint said.
The FTC and Florida note in the complaint that Chargebacks911’s clients include three companies that the FTC has sued for deceiving consumers.
The plaintiffs are asking the court to stop the illegal activities and order monetary relief, according to the press release.
As PYMNTS reported in July 2022, chargebacks are transaction disputes initiated by cardholders. These may be initiated by cardholders who have experienced true fraud, who are confused or frustrated about their transactions, or who are simply using the chargeback process to avoid paying for goods and services.
Merchants understand the best way to address disputed cardholder transactions is with effective tools that first alert them to disputes and then help resolve them cleanly without revenue loss or damage to customer ties, according to “Dispute-Prevention Solutions: Protecting Profits and Customer Relationships with Third-Party Tools,” a PYMNTS and Verifi collaboration.
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Handle Adds Fiserv’s Embedded Payments Capabilities to Construction-Specific Credit Software
BY PYMNTS | APRIL 12, 2023
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Handle has added Fiserv’s embedded payments capabilities to its construction-specific credit software.
With the integration of these capabilities from Fiserv, a global provider of payments and financial services technology, the capabilities of Handle’s construction software for material suppliers and specialty contractors will include secure payment acceptance, Handle said in a Wednesday (April 12) press release.
“By integrating industry-leading payment capabilities into the Handle software platform, we are able to modernize how businesses across our industry manage payments,” Handle CEO Patrick Hogan said in the release. “Our customers can now leverage the power of Fiserv payment technology and industry expertise alongside the power of Handle — facilitating both payment compliance and payment efficiency on every construction project.”
PYMNTS research has found that construction firms are increasingly turning to digital payment solutions to increase cash flow and clear accounts receivable (AR) faster and cheaply.
Digital payments technology is alleviating some of construction firms’ headaches such as getting paid on time and getting paid quickly, according to “Building Better Cash Flow in Construction with Digital Payments,” which is part of the “B2B and Digital Payments Tracker® Series,” a PYMNTS and American Express collaboration.
The report also found that almost half of the middle-market professionals in the construction industry said investing in technology was a top priority over the next 12 months — and four in 10 are increasing their budget specifically to add technology — as they seek the speed and operational efficiency of digitizing.
Handle’s addition of Fiserv capabilities includes integrating with CardPointe Gateway and other PCI-compliant tools via Fiserv’s integrated software vendor (ISV) engine, according to the press release.
The new payment processing capabilities will join Handle’s existing solutions for managing credit and payment rights for credit and finance teams in the construction industry, the release said.
“Construction payments are typically over complex with multiple parties involved and a plethora of compliance documents, lien waivers and more needing to be exchanged during the payment process,” Handle said in the press release. “Handle currently solves the aforementioned and will now be able to streamline construction payment processing as well through the Fiserv integration.”
