Dwolla sued over reversed transactions 

Des Moines-based Dwolla Inc. has been sued by an online currency exchange company, TradeHill, which alleges that it lost money after its customers who were using Dwolla for transactions later reversed the payments with their banks, the Des Moines Register reported. The federal lawsuit, which seeks $2 million in damages, alleges nine separate offenses, including racketeering, false advertising, breach of contract and intentional misrepresentation. A chargeback, or reversal, is used by financial institutions to protect customers from fraudulent transactions. Rather than absorbing the chargebacks that were made, Dwolla passed them on to TradeHill by reversing transactions within TradeHill’s account with no notice, according to the lawsuit.

Des Moines-based Dwolla Inc. has been sued by an online currency exchange company, TradeHill, which alleges that it lost money after its customers who were using Dwolla for transactions later reversed the payments with their banks, the Des Moines Register reported. The federal lawsuit, which seeks $2 million in damages, alleges nine separate offenses, including racketeering, false advertising, breach of contract and intentional misrepresentation. A chargeback, or reversal, is used by financial institutions to protect customers from fraudulent transactions. Rather than absorbing the chargebacks that were made, Dwolla passed them on to TradeHill by reversing transactions within TradeHill’s account with no notice, according to the lawsuit.