I would love for someone to maintain a list of abusive domains, for example, they host with you for 4 months and then do a charge-back.

By the way, anyone know a collection agency that would handle small problems, a hundred dollars or so?

can't you post an agreement or so that the user must pay if they fill out your form? it's like a contract.

You may find the article at http://www.bizmove.com/finance/m3e1.htm helpful. An expert states..

"The collection agency's fee is usually based upon a percentage of each account collected. The percentage ranges from 25% to 50% depending upon the size of the account or the total dollar volume of accounts referred to the agency for collection. This approach, while often effective, can be expensive.

A business is committed to paying the agency's fee on any account referred for collection, whether payment is made to the agency or to the business. Although some creditors may resent making payment to a collection agency and prefer to pay the company directly, the company is still committed to pay the fee when the account is collected."

I believe Equifax has a program that will deal with anything over $50 ...

We are beginning to look at our options in this area as well. The amount of people who do not pay or chargeback seems to be growing ... as if they assume since it's "just the net" no one will care....

Deb

Rob, Someone recently sent me the url for https://www.trumbull-services.com/FastBack/getFastBack. Apparently, they'll harass your deadbeats for a flat fee. Their $15 package gets you two reminder letters and a phone call.

According to their own web site, "Fastback Collections (www.getfastback.com) has been selected by inc.com as a ‘Best of Breed’ solution provider." We've never used this service, but I'd give them a shot if I wanted some collections assistance.

Originally posted by Rob
I would love for someone to maintain a list of abusive domains, for example, they host with you for 4 months and then do a charge-back.Rob, if you ever visit hostcoalition.org, the "Fraud Warnings" forum there is apparently intended for just that purpose. It doesn't get use much, though.

Regarding collections, I have a friend who owns a small collection agency. I'll give her a call tonight; I have no idea what kinds of limits they have or if they are even looking for more business.

I don't know anything about them either, but one caveat from the info on that site: the service is only for commercial debt collection. So you could use it for business clients but not for accounts opened by individuals.

JayC:

what they mean is that you cant use the service to collect personal loans, like from a family member or a friend. I read throught the form and it looks like what we need, and for a very reasonable fee. We just have to put a price tag on what is cost effective to collect and what isn't.

thanks for the info.

Originally posted by Rob
what they mean is that you cant use the service to collect personal loans, like from a family member or a friend. You may be right, but from their site: "We concentrate on your commercial debt collection. By avoiding consumer debt collections, we save on the high cost and avoid the maze of regulations of consumer debt collection."

So the use of the term "consumer debt collection" does not seem to refer to personal loans to friends and family. And there really is no regulation regarding collection of such "interpersonal" debt; the strictest regulations apply to collection agencies, and you are free of much regulation even as a business when you collect a debt yourself. "Business-to-business" debt collection is also more lightly regulated than is collection from individuals.

So to me they seem to be saying they will collect only from businesses, and not from "consumers." Now that wouldn't really reduce the value of the service much for my company, by the way, since most of our clients are businesses. And that may actually be the case for most hosts.



[Edited by JayC on 10-10-2000 at 03:24 PM]

Back to the topic of abusive domains.

As a host, what can you do if your client wants a chargeback because he/she pretend that it was a mistake that they sign up with you. (maybe somoen else use their CC to sign up) and call you saying askign you "What is webhosting"

You need the cardholder's signature. Before you sign up an account, have your customer FAX over to you a signed receipt (can be generated initially by e-mail) and have them send a copy of the front/back of their credit card. Also, be sure AVS matches, both address and ZIP. If not, contact the cardholder and get the right address and do not process an order until you have a complete match.

This is sufficient evidence to a merchant company to reverse charge-back fees.

Of course, this may delay setup times for your customers, but you'll be a lot safer in the long run as someone using a stolen credit card will most likely not bother with you if you require proof.

OLM makes you sign a slip with your CC info.

Originally posted by JTY
OLM makes you sign a slip with your CC info.

What is "slip"?

Payment slip, I assume, like the ones you get when you pay at a shop (normally white or pink).

I agree! Chargebacks suck!

I don't see how a person can go to their bank and dispute the order after 2 to 3 months of using your services.

Let's not even mention the money you have just lost on services rendered and chargeback fees.

Umm... they internet doesn't make use of slips and signatures.

Originally posted by Dylan
I agree! Chargebacks suck!

I don't see how a person can go to their bank and dispute the order after 2 to 3 months of using your services.

Let's not even mention the money you have just lost on services rendered and chargeback fees.

Umm... they internet doesn't make use of slips and signatures.

But how often this occurs?

We are on our 4th or 5th merchant and we finally have a keeper. We are now with Nova

And heres what we do

1. user signs up
2. we have a autoreponder to send them a "Credit Card Approval Form"
a. states that we have their cc on file
b. we will only charge their cc per the account they setup..ie quarterly or yearly

3. They must fill it out and return it within 24 to 48 hours via fax, signed
4. We setup their account within 24 hours anyway, and all the card holders that are not frauldulent, have no problem at all returning it...

We've been with Nova now for about 5-6 months and have yet to get a chargeback, when we didnt require the form, we would be getting anywhere from 500 to 1000 a month in chargebacks.

If anyone wants a copy of the form i use, email me :)

Originally posted by PepsiCoke

We are on our 4th or 5th merchant and we finally have a keeper. We are now with Nova



You mean 4th or 5th merchant account? (or customer?)

Originally posted by PepsiCoke

3. They must fill it out and return it within 24 to 48 hours via fax, signed



But if I for example don't have fax, should I buy one for 100$ just sign up with you?

I suspect the postal service is a viable alternative to the fax machine :)

Originally posted by inwks
I suspect the postal service is a viable alternative to the fax machine :)

I'm afraid I'll wait about one month (or even more) for my mail to be delivered to hosting company.