How can somebody purchase the stuff by using their credit card, and drop or dispute the payment later?

i been using credit cards for 5 seven years since i came over America. There is one thing i still can't understand it. One example, my friend used to own a small fast food delievery store. Lot of his customer call in to place the food order and give their credit card information; then he manually enter the card number, then deiliver to them and get their signature on the printed slip, just like all the businesses do. But later he received the payment dispute notice from the credit card company. it seemed there is nothing he could do. It is like people ate the food, later just drop the payment they should make. One more story, last year i helped selling tickets for some kind of cherity concert. Lot of people were like playing nice bought the ticket to come, but a month later we receive disputed payment over a thousand. i don't know if they fix it or not. but anyway, How could that happen? people bought something and later legally refuse to pay for it?

Public Comments

1. it's basically theft. call the police
2. You have to have a signature to prove they received the product. If a good or service was paid by credit card but not recieved, say like you bought airline tickets, and the airline folded, then you can get the charges reversed. This is a advantage over using cash to by airline tickets. I do not know what you can do, are you certain the people are rejecting payment and not a crooked bank saying the payment was rejected? Maybe if a photo of the purchaser was made at the time of purchase, but thats alot of expensive paperwork for small ticket items. In general, alot of restraunts do not take credit cards. If you are going to continue taking credit cards maybe it should only be for regular customers. You need some way to weed out repeat business from bad customers, ask other business owners in the area if they have had the same problem, compare notes, maybe make a common database of cards that are bad.
3. A customer can dispute a charge if the service was not rendered, the product was misrepresented, and a few other reasons. The customer has to prove that they did not get what they paid for, and the merchant has to prove that they provided exactly what they told the customer they'd get. In the case of the fast food - that's just dumb. Who disputes fast food? Anyway, the restaurant just has to prove that the credit card receipt was signed, and that the amount charged was reasonable. In the case of the charity concert, the customer has to prove that the concert was either cancelled, or wasn't what was advertised. The merchant has to prove that the concert went on as scheduled. Both of those two dispute types are difficult on both ends to prove, but likely the customer would not win without the proof.