In the case of card fraud, you don’t have a contract with the actual account owner. So taking that money results in THE COMPANY fraudulently charging a card. Ag

In the case of card fraud, you don’t have a contract with the actual account owner. So taking that money results in THE COMPANY fraudulently charging a card. Again. In the case of an actual dispute (non-shipment, etc) you do have an actual contract. However, this smells like extortion(?). You didn’t deliver on your end of the contract (deliver goods) but are penalizing the other side for your failure to deliver. It won’t go over well when you get the class-action suit, and all the little ones in-between.