May 19, 2008 03:00 ET

Who Pays the Price for Credit Card Fraud? DesignAShirt Custom T-Shirt Company Aggressively Pursues Credit Card Fraud Offenders to Keep Prices Down

TEMPE, AZ--(Marketwire - May 19, 2008) - Who pays the price for credit card fraud? In many cases it is business owners that end up paying the price, causing more retailers to go on the offensive against credit card fraud.

On March 24th, a person claiming to be Karen Smith placed five separate orders from for custom t-shirts that totaled over $3,000. Five different orders from one client with various t-shirt designs triggered a fraud alert at DesignAShirt, so they did a verification of the credit card being used. The shirts were to be shipped to Ms. Smith in Orlando, Florida, but the card belonged to a Ms. Rojas in Washington, D.C.

DesignAShirt, using people search tools found on the Internet, found and contacted Ms. Rojas who made it clear that she hadn't ordered $3000 worth of custom t-shirts, nor given anyone in Florida her credit card to order t-shirts. Once DesignAShirt had confirmed the order was fraudulent, they quickly reversed the charges against Ms. Rojas' card in an effort to prevent any further inconvenience.

Ms. Rojas immediately cancelled her card with American Express, but they declined to pursue Ms. Smith in Orlando because according to their policy, they were not in the wrong and would not have had to foot the bill.

When credit card fraud occurs, how the transaction was made determines who pays for it. If it happened face-to-face with the cardholder signing in the presence of the merchant, the credit card company is generally liable. But if it's a card-not-present transaction, such as on the Internet, over the phone, or via mail, the merchant is liable even though the credit card companies accepted the charges and gave approval codes.

"Fraudulent credit card charges can take a toll on a company, leading retail costs to rise and ultimately get passed along to the consumer," said Sarah Leavy, VP of customer relations for DesignAShirt. "We like to watch out for our customers and keep costs down. We have many fraud alerts in place to aggressively pursue every possible fraudulent order."

It's unclear how Ms. Rojas' credit card information was obtained by Ms. Smith, or if any legal action will be taken on this crime. Ms. Rojas contacted the police, but since the charges hadn't actually been completed, they wouldn't take a police report. Thanks to quick action by the DesignAShirt team and Ms. Rojas, no serious damage was done to either party's finances however.

For more information call 480-966-3500 or visit


With over 20 years of experience in the apparel industry, is an online custom t-shirt design company that allows customers to easily create personalized t-shirts through a unique, technologically advanced online design platform that contains a wide variety of art, colors and fonts, plus an option to upload personal artwork.