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ECommerce Shipping and Billing Laws?

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  • User profile image
    JoshB

    Here's an interesting one. Does anyone know if there are any laws, or places to look for laws, that govern billing a customer before shipping the purchased goods. I was always under the assumption that a credit card could not be charged until the product has been shipped.

    This all came up because a client of ours uses delayed shipping and they're trying to capture before the product ships.

  • User profile image
    Harlequin

    I don't think credit cards get "charged" right away, I think they go through some kind of "reservation" process until it's shipped. If you order something from Amazon that will take 2 months, I think your CC will get some researve thingy on it, until it's finally shipped in which it gets charged. Maybe call your bank and ask? The corporate office, not the doofuses at the local branch Smiley

  • User profile image
    zzzzz

    Federal Trade Commission or Commerce Department.  Need to check local state commerce laws also. 


    To my knowledge there is no law that stops a company for billing you before shipping, be it seconds, a day, or weeks prior to shipment.

    On Some  large items i manufacture i need to collect a large somes of non refundable money to even start a project.

    Companies don't normaly charge people weeks prior to shippment as a customer service and from a cost point of view,  Credit card companies charge for both credits and debits against the merchant...

    As long as you state your policy up front you can do allot of things.  But there are exceptions when dealing with consumers. 

    Check with a laywer to get answer, as case law does not always agree with written law.

  • User profile image
    zzzzz

    Harlequin wrote:

    I don't think credit cards get "charged" right away, I think they go through some kind of "reservation" process until it's shipped. If you order something from Amazon that will take 2 months, I think your CC will get some researve thingy on it, until it's finally shipped in which it gets charged. Maybe call your bank and ask? The corporate office, not the doofuses at the local branch Smiley



    Its call pre-authorization or pending transaction on money  It makes sure a credit card is good for the described amount.  This transaction is only good for i think 5 or 7 days.   If the transaction is not completed in the alloted time it is reversed by the credit card company. 

    This type of transaction does not cost the merchant any money.  This is most commonly done by hotels and other travel related items, to make sure the merchant will get paid for holding a room or car rental

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