(Bloomberg) — A woman’s ill-fated attempt to buy diamonds in New York City with a debit card linked to Russian bank accounts has landed Square Inc. in court.
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A Florida resident who says she spent $645,000 at a West 47th Street store in Manhattan’s Diamond District claims in a lawsuit she never got her gems and the payment processing company won’t return her money after concluding the purchase would violate US sanctions on Russian banks.
Maria Zurabova, a US citizen with friends and family in Russia, filed her complaint Friday in San Francisco federal court, where Square is based. Zurabova says she made her purchases at Royal Star Inc. about a year ago using cards linked to Russian banks, including Alfa-Bank. She says she held the accounts because she occasionally traveled to Russia before the invasion of Ukraine.
Square received Zurabova’s funds before any sanctions of Russian banks were in place and, in any case, she argues her use of money held in…
2023-03-03 16:51:27
Source from finance.yahoo.com
A lawsuit was recently filed against Square Inc, alleging that the company refused to process a $645,000 payment for a diamond because of their own company policies.
The lawsuit, which was filed on April 12th in the U.S. District Court for the Southern District of New York, alleges that Paul Ziffer, an international diamond dealer from Vancouver, Canada, attempted to use Square’s payment processing service to process a payment for a single $645,000 diamond. The payment allegedly went through without a hitch and was authorized by Square, but when Ziffer attempted to submit the payment for processing, the company refused.
Square’s refusal to process the payment reportedly violated their contract with Ziffer, who alleges that the company ignored their own payment processing policies and refused to process a transaction that was far larger than their stated limits. As a result, Ziffer is now seeking compensation for any losses incurred due to Square’s refusal to process the payment.
Square has declined to comment on the lawsuit, but has maintained that all of their payment processing policies are legal and comply with applicable laws. They have also stated that all payments are subject to their terms and conditions, which may limit the type and size of transactions that can be processed.
This case serves as a reminder that payment processing companies need to be prepared to process payments of any size and adhere to their own policies when doing so. While Square has not been found guilty of any wrongdoing at this time, the lawsuit demonstrates the potential consequences of violating one’s own terms and conditions. It remains to be seen how the case will play out in court, and whether or not Square will be found liable for refusing to process the payment in question.