Credit Card Charge Backs-SEI said they dont dispute them

[711owner]

I have 1000.00 of charge backs. I called SEI and they said that the
deal they have with the credit card contract is if "ANYONE" disputes a
card they automatically charge back to the FZ. It's hard to believe
but Dallas confirmed it by a 10 year employee.

I had an FC come in today and look the charges up, he said that I have
to do the disputing. Is this accurate information?

[Jack Rugen]

     I don't know for sure, PC.  Unfortunately, it sounds about right to me.

> Date: Thu, 15 May 2008 22:00:03 -0700
> Subject: (ZeeMail) Credit Card Charge Backs-SEI said they dont dispute them
> From: acti...@gmail.com
> To: Zee...@googlegroups.com

[CougarDon]

7-Eleven does not dispute chargebacks, there is no reason/incentive
for them to do so. Chargebacks are the sole financial responsibility
of the franchisee. You can request the backup to the chargeback and
dispute it yourself. The remaining problems are, you are not provided
the backup immediately upon 7-Eleven's receipt of the chargeback
documentation and by the time you request and then receive it (through
interoffice mail) the time within which a dispute must be filed may
have expired.

Even more troubling is that Chargebacks are treated as sales, so the
franchisee not only loses the cost of goods involved, but also pays 7-
Eleven an amount equal to 50% of the gross profit on the transaction
to 7-Eleven calculated as if the transaction were a sale instead of a
theft by fraud.

When a person uses a credit card, he makes a promise to pay pursuant
to the terms and conditions of the creditcard holders agreement. The
credit card company then makes a provisional payment to 7-Eleven,
which is credited to the store. Within the time specified in our
agreement with the credit card company, the credit card company may
revoke the provisional payment (generally a period of less than 120
days). If the provisional payment is revoked, I maintain that no sale
occured and instead, a theft by fraud was perpetrated on the store.
By treating the transaction as a sale, rather than a theft, 7-Eleven
retains a portion of the proceeds of the fraud (50% of the putative
profit on the transaction). The chargeback paid by the franchisee
includes not only the cost of goods involved, but the profit which
would have been earned had the credit card company not revoked the
provisional payment.

The proper accounting procedure would be for 7-Eleven to treat the
transaction as a theft and book the cost of goods involved to
inventory variation (an easy matter because the credit card company
provides an itemized statement of the goods involved when revoking the
provisional payment). By doing so, 7-Eleven would neither profit nor
lose on the transaction and the franchisee would bear 100% of the cost
of goods involved. This method of accounting for credit card
chargebacks is utilized by most businesses, including other major
franchisors.

The company has rejected this approach.

[Neil Rose]

I had a similar problem and asked for the information to exercise the dispute and in my case an insurance claim which required a police report. One big problem stands in our way either by design or poor management. Once a dispute has been made by the customer or bank we as merchants have only 30 days to respond. The disputed charges normally do not hit your financials or any notification until well after the 30 day period.
 
I was told after four months of requesting information that I could not have the needed information to dispute the claim.  This was considered confidential per Karry Hoots the loss prevention officer in Las Vegas.
 
 I needed the names of the customer and the banking institutions that were disputing the charges for a police report and consequently  an insurance claim that would have covered the loss. Our store has a system that will take a stored photo of the customer along with storing the credit card info, hence the police can investigate.
 
In fact the store had changed ownership from my individual name to a corporation. This was pointed out to SEI an the reversed the charges from the new store number, only to have Gail B. our market manager recharge the store and then run back to Dallas. She was in Las Vegas for 6 months on an assignment. I have made numerous inquiries as to why this was done and in fact got called into the MM office and was dressed down over my persistent inquiries and questioning.
 
There is no accountability from SEI in these cases. In fact in my situation it was a violation of FASBA and the IRS rules against comling of personal and business funds.
 
This was however refuted by Gail per Dallas even though I pointed out the actual laws. An educated account rep in Dallas knew exactly what we were talking about and tried to do the right thing but was stopped.

---

From: jack...@hotmail.com
To: zee...@googlegroups.com
Subject: (ZeeMail) Re: Credit Card Charge Backs-SEI said they dont dispute them
Date: Sat, 17 May 2008 00:27:58 +0000

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