Merchant account

[cathysclocks]

I have a small antique clock buisness and opened a merchants accout so I can accept credit cards. Things were going great untill I had a purchase order from Nigeria. I thought this could be a scam so I processed the customers account number and waited 5 days for the funds to be cleared in my account. Then I was contacted by my bank that has my merchants account and was told that this credit card could be fraudulent and I would be responsible for a refund to them if it was fraud. They also want me to fax several past invoices from months ago and that I may have to return the funds from those sale also.
My questions is. After I have recieved funds from my merchant account and have already shipped my items to the customer will I have to repay my bank for a fraudulent card that my merchants account bank has accepted. If the card was no good shouild'nt they know and not fund the transaction?
Dennis

 

[Michael Wechsler]

What are the terms of your agreement with the bank? That is the key to your answers. I'm not sure if processing an account is a good idea if you suspect fraud -- would it not be a good idea to contact your bank first?

 

[The_Governor]

.

You should re-read your agreement.... I strongly suspect you will be left holding the ball!

 

[Scooter]

I wouldn't buy or sell anything to or from Nigeria. That place is a fraud magnet.