Hey friends I've a few guyz with many accounts over my server.
They have been with me from around 1 week.
Now, on each and every issue they try to threat me...
"We will issue a chargeback"..They say..that they will say to the credit card company.."that they never really made the order"...or "they didn't got the product or service as they expected"..:angry:

WHAT SHOULD I DO ????????



:( :mad:

WHat the hell should I do ??>

25$ per chargeback per payment and losing all the amount...which made me buy another server...??

Isn't their any way to protect the right of genuine and honest web host, startup, like me.
I try my best to keep the customers satisfied....but these few guyz are really asking whatever they want.
"they even want to do programming for them for free"

WHat the hell...???
:mad:

1. Take copious notes.
2. Don't accept extortion.
3. If they try to chargeback the money, present your notes to the credit card company or, if there is clear evidence of fraud, to the police in their jurisdiction.

But I Know...like all of webhosts over here...All of us !!!
We don't have any real proof of delivery.
And..furthermore.....they can still cancel the order,....by just saying their cc company,,,that our services weren't upto mark.
ALthough I know what I provide at the price which I sell...is almost the best a host can provide,

As Cperciva has said, take note of their threatening emails. Record their logging IP when they access their control panel. Then, take their CC number to lodge a police report. Then, maybe you can contact your merchant account provider on this matter. If the cards are stolen, tell the real cardholder that you would issue a refund and hence saving the extra fine for chargebacks. If they were real cardholders, then, you may want to lodge an extortion report and let the police take care of them, or sue them for compensation and losses, and attempted fraud to cause losses.

Originally posted by daretosucced
What kind of notes ?

The emails with the threats.

they can still cancel the order,....by just saying their cc company,,,that our services weren't upto mark.

Yes, but what will be next? Will they say "hey, send us 100$ or we will isue a chargeback?" Tell them politely that they should stop their threats, if they don't stop get rid of them.

Issue a refund and cancel their orders. They can't perform chargebacks on charges that were refunded. You don't have to provide service to them at all. Make sure you keep the emails and threats secure somewhere (print them out even) for future use in a court or for clearing up your name if they try anything here on WHT (like that would ever happen heh...).

That's what I would do (issue a refund). You don't need clients like this. Not worth the hassle, not even close.

Make sure to issue that refund via credit card, since that's the way they paid you.

I've leased a new server only for them.
I was selling at the best rate possible...just covering my cost and providing best support one could possibly give.
If I cancel those orders....I'll be still left to pay for around 700$ pm....which is on 1 year contract.

:(
:angry: :( :mad:

:confused: Please suggest how can I keep that money...
Did I tell you...I've spent most of the money..which I recieved through wire transfer so also, I don't have any alternative but to keep them.

Plz suggest something. Fast.

Did you rent the server for them to use as a dedicated server from you? If so, did you do any kind of contract with them?

Also, you mention wire transfer. Is this how they are paying you or was that a one-time thing?

Have you already tried to phone them? Usually with a call it's easier to discuss issues. But with customers who make threats "Program for me or I will do a chargeback" you will get nowhere.
A really bad situation. As you can't get out of the contract you will have to find new clients quick to break even.

I recieved money from them through a 3rd party cc processor, who transferred money by wire transfer.
They paid me for a full year.
I purchased a heavy duty machine with ample bandwidth and paid more than >1000$ including setup and monthly fees on a contract with a major server provider.

They are just making my life hell. WHy do people do this ? They are in different country and I can't call them...Also, calling them would be futile...They are equi = Robbers.
:mad: :angry:

Isn't their any law or measure for protection of web hosts like us ?

Originally posted by daretosucced
Isn't their any law or measure for protection of web hosts like us ?
Contracts work nice. When you accept that much money and go into a contract yourself when you depend on the money of your customer to fulfill it, you should get some kind of contract from your customer as well.

At this point, keep records of everything proving you are providing the service you agreed to. If they try a chargeback, just present your case. If it were me, I'd provide only what I agreed to at this point, and nothing more. If they try the charge back, I'd fight it as much as I could. You might also want to contact your 3rd party merchant and let them know what's going on. Perhaps they can help. If not, at the very least they will know about the situation if a chargeback does happen.

Wire transfer froma 3rd party credit card processor? Am I understanding this correct, the clients pay Billy Bob's credit card processing for a full year of service and then Billy Bob sends you the money. So, do you have an account with Billy Bob processing?

- What I am trying to get at if they arranged for another company to take the money off thier credit card and then send you the money how are you responsible for a chargeback? (unless you are a client of this other company)

- I take it the credit card company is one of the big ones (Visa/Mastercard). If that is the case a copy of any threating emails should be sent to them before they follow through on the threat as it will establish their actions. Now the problem here is how the email is worded from them, can it be taken a few different ways?

- Can you post some of the emails here so that we can get a better understanding of what is being said and that way some of the people here may be able to offer you better advice.

They just send with all of their unreasonable demands...in very polite email...and when I reply them,,,that it's not covered under support.
then afterwards a two line email..Do it or we want our money back.
:angry: :mad:

Can email be considered as evidence ?
WHat all can I provide to show the proof of delivery ?

Originally posted by daretosucced
WHat all can I provide to show the proof of delivery ?
Email headers and mail logs, if you have access to them.

Yes email can be used as evidence. The best thing for you would be to kill this account, no matter what. Maybe you can put up an ad and get a new customer for the box.

First off, why are you excepting any large credit card payment without a faxed copy of the credit card and proof of signature? Any dedicated server offering we have we first have the customer sign, then photocopy the credit card (front and back), then fax back a credit card authorization form. On this form you make it like a sales draft. Tell how much the first charge will be on what date, then tell about monthly recurring charges.

This method will protect you against scum bags. You may lose a customer or hear "This is too much work to use your company, please cancel". I turn that into "It is to hard for us to scam you, please cancel". Honest people will send it back. This includes from other countries!

As far as what you can do now, since someone else accepted the money from their merchant account then wired you the money, you will not be issued the chargeback. The person with the merchant account will. Also, it is against MC/Visa guidelines to accept credit cards for other companies. So that company really has no recourse in my opinion to go after you, since they broke the guidelines.

As far as what you can do now, since someone else accepted the money from their merchant account then wired you the money, you will not be issued the chargeback. The person with the merchant account will. Also, it is against MC/Visa guidelines to accept credit cards for other companies. So that company really has no recourse in my opinion to go after you, since they broke the guidelines.


This is not the case he is referring to. If he is using a 3rd party CC processor like Revecom, for every chargebacks, revecom will penalise him for that. Please review your opinion.

Friends, those guyz were just some idiots...cats pretending to be tigers...heh heh

This time...I threatened them with their logs and IP's and told them...that I'll get them behind bars for atleast 10 yrs. due to the serve crime of credit card fraud and threat on life...:stickout

They just cooled down...they said...they were just joking ( I know they wern't )

Anyway...I've learnt a big lesson.
Hey can situation like this happen with revecom or 2checkout ?

Just wonder..what would I do then ?

I would like to know how this situation pans out, please continue to post here...

As for advice... Is there a TOS that the customer had to agree to before beginning service with you? You may want to remind them of it. If you do have one and it says something like "the following services will be rendered:...." Point out parts of the TOS to them that shows that you do not have to do what they are requesting.

Hope this helps.
Mike.

I hope you are not starting your business based on this thread alone :
http://www.webhostingtalk.com/showthread.php?threadid=24618&highlight=loss

If you are running your business without proper plans and projections, cash flows, etc ........then I have nothing else to say.

By the way, they are just inexperienced. Since they are from other countries, if they do what they have said, even if you get lawyers, international court case costs $$$$$$$$$ , not a small amount. Even if you have their IPs, what can you do when they are far away?

By the way, threatening back is not a wise idea. I can tell you that they can still force the chargeback by just saying the service level is not as promised. That's it. You still have to pay for chargebacks fees. Sending fake threats can backfire you. Should they go nasty and contact their CC company and said that they received unacceptable terrible level of service and they contacted you to request for a refund, but you send that threat, I guess you should pray harder at that time.

I recieved money from them through a 3rd party cc processor, who transferred money by wire transfer.

Hey ericwelong, ever heard of Revecom doing this?

This is not the case he is referring to.

What case is he then? Because I too would like to know what third party CC company will *wire* money.

PS- my opinion stands for the situation I described in my post. Please take the time to review it.

UmBillyCord

He said that he is receiving money through a 3rd party processor...then the money is transferred to him through wire transfer. I can name you two companies doing this internationally. Revecom and 2Checkout. Wire transfer is not something that can be done only through real merchant account only. You just need to pay charge. I think both companies charge around $40 per wire transfer. Perhaps you should do a search on this forum first on revecom, it has been discussed on so many occasions regarding its services.

Originally posted by daretosucced
They just cooled down...

Good to hear! Good luck next time, and be more carefull.
But sometimes every host get's burned.

NetDotHost I just did...what I already told all of you. I made my point firm..and became prepared to face anything as I was not at all wrong on my part. Not only this, I threatned them ..yeah that's the major point I guess....to put them behind bars...for what they were trying to do. ANd those idiots suddenly became aware of the seriousness of the situation and asked to forgive them...and do not take the matter to police...heh hehheh

Well...But I've learnt a big lesson. Never ever give too much for too less. Charge atleast 400% of your cost to keep you on the safe side. Yeah, coz. there are lotz of losses and hidden costs that you are gonna discover when you're right into it.

Thanka again everybody.

I've leased a new server only for them.

Really makes me sick when Hosts go out of their way to accomodate people and then get treated like this :angry:

Everyone has given tons of good, solid advice - but at the end of the day, it's a learning curve, one which everyone is still on - regardless.

Hope things work out:D

Eladesor.

Originally posted by daretosucced
Well...But I've learnt a big lesson. Never ever give too much for too less. Charge atleast 400% of your cost to keep you on the safe side. Yeah, coz. there are lotz of losses and hidden costs that you are gonna discover when you're right into it.

Thanka again everybody.

Just my .2:
-depending on what country they are in I am not sure there is a way to do a chargeback on their card, I don't know what's the legal jurisdiction: the cc processor or theirs...
-ok I'm glad you tamed'em, but...if I were you I would actively look for another customer to pay for your server before you get really entangled with their demands because of their financial leverage. You never know.