Legal Question in Credit and Debt Law in California

As a Company can we charge a customer's credit card without their authorization?

Asked on 11/05/10, 8:00 am

2 Answers from Attorneys

Michael Isaac Shokrian Law Offices of Michael Isaac Shokrian, APLC

Generally speaking, NO. My understanding is that the law allows certain exceptions which allows certain types of business to charge in that manner, like movie theaters.

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Answered on 11/10/10, 8:41 am

Timothy McCormick Libris Solutions - Dispute Resolution Services

I think Mr. Shokrian is confusing recent changes that allow credit cards to be charged without a signature when swiped at the point of sale and below a certain dollar amount, with being allowed to make an unauthorized charge. It is never legal to make an unauthorized charge. It is legal to get preauthorization, such as for a recurring monthly charge, or conditional authorization, such as if you don't return the rented power tool you agree we will charge your card the cost of replacing it. But unauthorized charges are theft.

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Answered on 11/10/10, 11:09 am

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