Get e-Biz Intell. Especially take a hard look at recourse provisions for chargebacks you deem fraudulent or in bad faith. If you have questions, contact your bank and get a clarification in writing. Such a written reply, while not officially part of the agreement, MAY well constitute a legally valid addendum. All merchant services agreements are not created equal.
Some banks have stronger protective clauses for some types of merchants than for others.
I've personally seen this, for example, with a California-based bank, which offered a San Diego clothing merchant very little recourse at all against a contested charge. The same bank has other agreements which specify more clearly procedures, including a time limit, by the merchant to offer evidence that the charge is valid. If you have any comments or suggestions on this site, please feel free to send an email to E-Commerce Guide's Managing Editor . Corp. All Rights Reserved. Legal Notices, Reprints.