Consumer complaint received 2025-06-06 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Fraud or scam — 
Company: FISERV FINXACT CORE
State: GA

Complaint narrative:
I am a small business owner who was the victim of a coordinated scam that Clover ( a Fiserv company ) enabled, failed to protect me from and is now attempting to collect a $ XXXX debt related to. 
In XX/XX/XXXX, I was contacted by someone posing as a client booking dog training services. They insisted on paying by card and directed me to sign up with Clover since I did not have a card processing system available. 
I became suspicious and discussed my concerns with Clover support before establishing an account or accepting any payment. I was told that if I sent the client an invoice and they entered their own card details, I would not be held liable for fraud. I followed that advice, sent the invoice through Clover 's system, and the client processed the payment. I saw there were 3 failed card attempts prior to the successful transaction. I brought this concern to my Clover representative and was reassured this method was secure, I would not be held liable, and the transaction looked legitimate, so I accepted the payment and booked the client 's service. 

The transaction was processed on XX/XX/XXXX for {$5000.00}. It was : -Fully authorized by the card issuer, -Returned a match on AVS ( Y ) and CVV2 ( M ), -Entered by the buyer through a secure Clover invoice. 

The chargeback was later filed under Visa Reason Code 10.4 ( Fraud Card-Absent Environment ). However, Visas own policy says that when a transaction is authorized and both AVS and CVV2 match, merchant liability should not apply. Despite this, Clover failed to properly defend the transaction.

The chargeback was later filed under Visa Reason Code 10.4 ( Fraud Card-Absent Environment ). Visas own policy says that if a transaction is authorized and both AVS and CVV2 match, merchant liability should not apply. Clover and Fiserv failed to represent this defense. 

On XX/XX/XXXX, after months of silence, Clover attempted to withdraw the full amount from my bank account without any warning. When the debit failed, they sent me to collections through First Data XXXX XXXX, a Fiserv affiliate, who is insisting I pay the the full amount plus additional fees. 

In denying my rebuttal, Clover suggests I should be using Visa 3D Secure ( 3DS ), yet they never once mentioned this tool at the time I raised fraud concerns. They failed to provide the information or tools necessary to protect me.

Since then, Ive discovered scams like this involving Clover targeting small businesses like mine are widespread and discussed publicly online, including by other dog trainers. Clover is mentioned frequently as the processor being exploited, yet they continue to allow it and profit by sending victims like me to collections instead of addressing their platforms weaknesses. 
I have learned that this exact scam, of XXXX XXXX with the XXXX XXXX and XXXX, has been discussed on social media as a known scam, with multiple businesses reporting similar losses. This suggests that Clover is either unaware of or ignoring a repeating pattern of fraud on its platform. 
That this scam has become recognizable and even joked about publicly among small business owners in comment sections, while Clover continues to allow it to occur and seeks to profit from the fallout through collections against victims, is deeply concerning. 

I attempted to reach my assigned representative for help building my case and was ignored. I called the number provided for merchant support and was routed to a system that offered no live support or assistance. I was promised help and a chance to defend myself but given no meaningful opportunity to do so. 

I attempted to send a written dispute to the email address provided in the First Data XXXX XXXX collection notice. That address was revealed to be an unmonitored inbox only after I replied. This appears to be an intentional barrier to prevent merchants from exercising their legal right to dispute a debt under the FDCPA. 

I am disputing this debt and requesting : -That this chargeback and resulting collections be removed from my record, -That Fiserv/Clover be investigated for misrepresenting fraud protection policies and mishandling chargebacks, -That all collections activity and bank debit attempts stop immediately.

Company response to consumer: Closed with explanation