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Is a credit card number really valid for a deposit on a service?

I own a small business which often takes credit card numbers over the phone as a deposit. We recently had a customer no show, and she contested through her credit card company when we charged her (she claims it wasn't explained when she gave us her #). The credit card company took her side and said it is policy to allow anyone contesting to get their money back if there is no signature. How can this be? So many hotels and services take card #'s as deposits!

Asked By: JNate - 10/6/2006
Best Answer - Chosen by Asker
Most credit card companies state in their cardholder terms that if a consumer is not satisfied with any goods or services through a merchant they can dispute the charges and or have them reversed. Even with a signature I think they can refund the customer. Unfortunately this happened at my job last year.
Answered By: searaydreams - 10/6/2006
Additional Answers (1)
Call your merchant services (credit card processor) and ask them how to avoid this situation in the future.
Answered By: hirebookkeeper - 10/7/2006
 
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