If an eCommerce merchant disallows charge-backs for non-fraud related cases in their terms of service, can they sue (and win against) a customer for initiating a chargeback in violation of such terms?

  • Some of this has to do with state laws (your state and the ecommerce site's business location state), and your TOS with your bank for your credit card. What does your bank say about charge backs? Feb 22, 2017 at 3:15
  • I imagine that it would have to do more with the merchant's contract/TOS with the card processor? Jul 1, 2022 at 14:10

1 Answer 1


Probably not. Doing so would generally violate the terms of their merchant account contract with the credit card company and result in that ecommerce site's merchant account being terminated, which would effectively put them out of business. No ecommerce site short of an Amazon or an eBay would have enough bargaining power to prevent that from happening to them if they tried to violate the merchant account terms.

  • Doesn't PayPal actually do this though? I've heard of a friend contacting PayPal to say q product was so faulty as to merit a refund, and they said to talk to his bank. He disputed it with his bank and got his money back but PayPal terminated his account with them. Is that legal? Jul 1, 2022 at 14:13

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