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? – BlueDogRanch Feb 22 '17 at 3:15

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.

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