Consumer complaint received 2026-03-26 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Card was charged for something you did not purchase with the card
Company: U.S. BANCORP

Complaint narrative:
SUMMARY This complaint concerns a fraudulent merchant account acquired by Elavon XXXX XXXX Bank ), where failure XXXX escalate known fraud contributed XXXX the chargeback remedy no longer being available, resulting in unrecovered consumer financial loss. BACKGROUND My XXXX XXXX I reside in XXXX, XXXX, and hold a joint Visa credit card account with XXXX XXXX XXXX. On XX/XX/XXXX, my wifes credit card was charged {$920.00} CAD by a merchant identified as XXXX on the statement ( Attachment XXXX ). This transaction was not authorized. We became aware of this unauthorized transaction in early XX/XX/XXXX while preparing our tax return. At that time, we contacted the legitimate company XXXX, based in XXXX, XXXX. XXXX informed us that : They do not operate a merchant account. They had been impersonated by fraudsters operating in the XXXX XXXX. Fraudsters used their company name to establish a false merchant account. This account was acquired through Elavon. Multiple victims were affected. XXXX provided supporting documentation, including : A XXXX police report dated XX/XX/XXXX ( Attachment XXXX ) An Elavon confirmation of account closure dated XX/XX/XXXX ( Attachment XXXX ) The police report indicates that : XXXX was XXXX contacted by a victim on XX/XX/XXXX. Elavon contacted XXXX regarding the fraud on XX/XX/XXXX. From XX/XX/XXXX through XX/XX/XXXX, we pursued resolution with both XXXX XXXX XXXX and Elavon ( Attachment XXXX ), exhausting all escalation levels. The outcome was as follows : Elavon acknowledged liability related to the fraudulent merchant account. Elavon is prepared XXXX issue a refund regardless of the time elapsed since the transaction. Elavon indicated that the issuing bank would need XXXX initiate a card chargeback process. XXXX XXXX XXXX declined XXXX initiate a chargeback due XXXX timing constraints ( Attachment XXXX ). Following a formal complaint to Elavon ( Attachment XXXX ), they stated ( Attachment XXXX ) that reimbursement is only possible through the chargeback process initiated by XXXX XXXX XXXX. REGULATORY CONCERNS This matter raises concerns regarding the actions of Elavon : XXXX. Merchant onboarding and fraud controls A fraudulent merchant account impersonating a legitimate business was successfully onboarded. This account was able XXXX process payment card transactions. Multiple victims incurred financial losses as a result. This indicates potential deficiencies in merchant onboarding XXXX fraud controls. XXXX. Failure XXXX escalate known fraud Elavon was aware of the fraud no later than XX/XX/XXXX. The legitimate business had no merchant account, meaning all transactions under that name were fraudulent. XXXX had the ability to identify affected transactions and notify the relevant issuing banks through card network channels. However : Issuing banks were not alerted XXXX enable cardholders XXXX initiate disputes within the required timeframe. As a result, XXXX XXXX XXXX declined XXXX initiate a chargeback. This represents a breakdown in fraud escalation and interbank notification processes.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation