Chargebacks911 is shaking up its C-suite as the company faces regulatory scrutiny over its approach to chargebacks, which are triggered for a merchant when consumers return goods or services. The company behind that brand, and its sister brand Fi911, is TK Unlimited, a division of Global e-Services, according to its website.

Last month, the Federal Trade Commission and the state of Florida sued the company for allegedly imposing unfair hurdles for consumers who sought chargebacks in disputes over credit card charges, according to a joint press release from the FTC’s bureau of consumer protection and the Florida Attorney General’s office. That action identified the company as Global E-Trading and named Eaton and Cardone as defendants, too.

The regulators in their April 12 release cited the defendants for allegedly using “multiple unfair techniques to prevent consumers from successfully winning chargeback disputes.” They also alleged that the infractions had been occurring since “at least 2016.”

The company disputed the charges in a press release of its own two days later, calling the allegations “inaccurate.” “We have always followed all rules, laws and processes, and will aggressively defend the purpose of our business, the privacy of our clients, and our own corporate ethics and reputation against overreach by the government and its various policing bodies,” the release said.

Chargebacks911 also underscored that it doesn’t work directly with consumers. “At no time does a firm like ours have any say in whether a dispute is reversed or not; only the regulated financial institutions and the consumers themselves may decide to surrender the chargeback claim,” the company’s April 14 release said. 

The company also argued that the FTC was trying to make it responsible for transaction data accuracy, and that the case outcome could set a precedent that would negatively affect all software-as-service providers.

There was no update to provide regarding the litigation on Wednesday, the spokesperson for the company said.

In another recent executive appointment, the company named Pelwasha Faquiryan as its new chief growth officer in October, a role focused on managing customer experiences.

By Tatiana Walk-Morris and Lynne Marek on May 3, 2023
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