riddledudes

One of our online customers placed an order 11 times during the month of August. Each worth about $80. He, then, filed chargeback(s) with his credit card company claiming that those charges were frauds.

However, all the credit card information matches (billing & shipping addresses) with his.

Most packages were shipped via UPS and were delivered to his door. Some of them were left in front of the door and some of them were hand delivered.

After all those chargebacks and 2nd chargebacks, our merchant service rep is trying to convince us to to file the Arbitrations for those transactions. He says we have all the required documents and the customer's credit card information matches, there is no reason why we would lose the cases.

The thing is arbitration costs $500 for each transaction. If we file the arbitrations for all 11 chargebacks, it would cost us $5,500 plus the lose of merchandise due to chargebacks.

What should we do? Do we have the case here?
Sorry, Yahoo wouldn't let me type in more detail in the original question due to the 1,000 character limit. Thus, I'm adding an additional detail here.

Regarding the fees, both parties must make deposit of $500 for each case. Once the case is over, the losing party will lose all that money. In this case, $5,500 for 11 cases. Of course, winning party takes back all his deposits. In other words, if we win, we get back $5,500 deposit + the original sales amount (approx. $1,000 for 11 sales.)

We declined to file arbitrations by taking $1,000 lose due to chargebacks, but our merchant service rep keeps calling us to file the cases.

May be, he filed the arbitrations already without our approval, thinking that we will. I don't know. It's just my assumption.