Merchant Tries To Forbid Chargebacks

Merchant Tries To Forbid Chargebacks

A reader wrote in to ask us if we’ve ever seen anything like the “Chargeback Abuse Policy” that Luxury Car Tuning in Las Vegas includes in their terms—”You agree not to file a credit card or debit card chargeback with regard to any purchase,” and if you do anyway, you have to pay any fees that normally the merchant must pay when dealing with a chargeback. The reader wants to know, “Is this allowed by any merchant agreement that you know of?  Sounds pretty ridiculous to me. How likely would it be that they could get away with this?”