My business is experiencing a very frustrating situation: a credit card holder is using his coporate card to make payments on large, unrelated customer accounts. He may be making deals with these customers where they pay him less than the amount they owe us, then he turns around and pays us and reaps the credit card rewards. It's basically a business for him, and it resulted in $90,000 of credit card fees charged to us in one month! Our merchant services agreement does not allow us to pass the fees on to the customer. We are now faced with either dropping Visa (the other companies will allow us to pass along the fees) or not accepting credit cards altogether. We would prefer not to pass along the fees to our customers - it's not good for business.

Does anyone know if coorporate credit card agreements with the card company typically disallow this type of abuse? If we can't do anything on our end, perhaps his own card company can put an end to this.

Any suggestions are welcome.

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