Quote Originally Posted by Nirish guy View Post
I can tell you that if a business processes and is paid an amount by the credit card company and it transpires that is was a fraudulent transaction then absolutely the credit card company reserve the right and DO reclaim the monies paid to that firm instantly from that firms existing credit card balance account with them. - and that claw back can take place anytime up to I think 12 months from the time of the fraudulent purchase.
I am sure you are correct, and the process may have changed in recent years. But I vividly recall having once to go to court on this issue. An informal client of mine - in that there was no agreement - lived in Australia. Unknown to me and my staff, and as it turned out his friends, he was a con man. He came to stay with one of his friends in Hong Kong and we had a brief meeting. Two days later, his friend, whom I did not know, contacted me. Did I know where he was? I hadn't the faintest idea. Turned out he had stolen the friend's HSBC credit card, purchased a first-class round-the-world ticket, forged the signature and then quickly left.

A day or so later, I received an official notification that HSBC had put a lien on my company account to the amount that had been charged to the card. It only took a few minutes to persuade the Court that we held no funds belonging to that jerk or that we had any responsibility for his actions. The lien was immediately withdrawn. But I believe this guy's friend was not reimbursed by VISA.

I am not surprised that there is so much credit card fraud now. You only have to look at the procedures the banks take before they approve a charge. Over the last couple of years I have to get a PIN sent to my mobile phone to be added to any internet purchase before that purchase is complete. And this covers all my cards - except ironically the one issued by HSBC!