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Originally Posted by **********
Also, AdultKing: Can you tell me why what Nalem wants to do is illegal in Australia? I hadn't heard that before. Is it illegal for any merchant to try to collect from chargebacks in Australia? Or is it only illegal for firms "hired" by merchants? I would really appreciate your input too.
Thanks!
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Firstly he doesn't have an ASFL licence which precludes him from offering such financial services. Secondly s47 of the Trade Practices Act prevents such business models.
If I use a credit card to buy an item then I am submitting to the card issuers/payment systems rules of business. Likewise if my bank or financial institution allows me to make a claim under those rules and that claim is awarded (as happens in a chargeback) then a third party cannot attempt to upset that. The liability lays with the financial institution not the card user.