2 days ago, I got an e-mail from 2checkout ordering me to give a refund within 48 hours, to a customer who falsely accused me of not supplying services (remember that his order was flagged for fraud and he didn't pay until a month later, neither did he contact us about wanting a refund). Apparently he called them and said I never setup his account.

I sent an e-mail to the tech who told me to refund and logged a support ticket. No reply :( Today, I get an e-mail from them telling me that the refund was processed!

Is this common occurrence? Isn't it common courtesy to at least respond to my ticket or ask the vendor before stealing their money and giving it to people who received services? I thought 2checkout always advocated and asked their vendors to practice proper business ethics. :rolleyes:



I'm also looking for a good, and reliable credit card processing company. Any suggestions?

Yes that's why we don't use them anymore.

Originally posted by coight
Yes that's why we don't use them anymore.

I did my homework before choosing them and didn't hear about anything like this :( What processor do you use now?

Worldpay

It's only recently <6 months that they started doing what you mentioned. I believe they are scared of chargebacks.

Originally posted by coight
Worldpay

It's only recently <6 months that they started doing what you mentioned. I believe they are scared of chargebacks.

only problem with WP is that they have recently been down due to a string of DDOS attacks.

I would recommend using paypal and/or authorized.net for credit cards. I know paypal will look into the matter and if its a virtual item or service when using paypal, the buyer can NOT win the case, as long as you have proof of sending him/her the signup e-mail, and just attach it to your responce to paypal.

But wouldn't your buyers need a Paypal account as well?

I checked into worldpay before and it was really expensive for me. I'm an international seller and I think some of their fees went up to 30%, I'll have to recheck that when their site is up again. But I guess getting 70% of your money is better than having 100% stolen.

This has really got me fuming now. After they steal my money, this is what I get:

This order was canceled after we rebilled the card due to lack of service. I took it out of the billing queue when the customer contacted us to state, that one week after his cancellation had been reversed, he still didn't have service. He asked for a refund. This message was sent to you from me directly. Had you responded to me directly this entire issue could have been avoided. I advised the customer to allow 48 hours (2 days) for a resolution to be offered by you. When the customer contacted us again 5 days later there was still nothing from you in my inbox. It appeared as though you were not wanting to save the order. As a result, we canceled the installment that had billed in the interim.

You were given notice. We do not cancel orders without just cause. I apologize that this had to happen this way. Perhaps the order can still be saved if you contact the customer.

If you need further assistance please re-open this ticket.

How convenient of them to simply see my ticket AFTER they force the refund on me.

Theft, I know they are capable of, buy lying?.
1. He never cancelled the account and the tech never said he complained about his "cancelled" account.
2. I did send an e-mail to her directly!
3. They did not wait 5 days. They sent the 48 hour refund order e-mail to me on the 2nd of October. The refund was forced on me on the 4th. That's 2 days! Not to mention I replied within 6 hours of seeing their e-mail.

And then they tell me that if I want to get my money back (money they stole from me), I should call the customer?!

That is why I physically call every clients, get an email verification, and for dedicated servers they sign a form stating it's them fax it to me, I call the number on the card record that for verification. That way they can never say I did'nt setup there account, or even try to.

Originally posted by Xandra
But wouldn't your buyers need a Paypal account as well?

I checked into worldpay before and it was really expensive for me. I'm an international seller and I think some of their fees went up to 30%, I'll have to recheck that when their site is up again. But I guess getting 70% of your money is better than having 100% stolen.

Yes your buyers will need a Paypal account, however a majority of the buyers in the United States will have Paypal, and for international orders i would recommend doing Western Union since then you know you have your money and theres no way you can be ripped off. Remember it would be even harder for you to track down someone in europe for example then in the United States if they owed you XXX.XX amount of money.

The reason why a company like 2CO handles these situations in that manner is to keep their chargebacks down.

They are not "stealing" anyone's money in this situation but merely issuing a refund back to the cardholder to avoid the cardholder disputing the sale and incurring a chargeback to 2CO.

In a way, they are doing you a favor by handling it this way because if they weren't so stringent - they could easily run into a situation like the fiasco with PaySystems.

It is important to keep in mind that any 3rd party processor is always subject to termination by their merchant processor if they exceed the specified chargeback tolerances on their aggregate sales.

BTW - Hotlock's advice above is excellent. By doing phone verifications and getting signed faxes on your sales, you will definitely help to reduce the % of fraudulent orders that you get.

They have always put me under the presumption that if a user requests a
refund they will first contact the seller and ask for our story, once
they get that they will decide what to do.

Originally posted by w33t
Yes your buyers will need a Paypal account, however a majority of the buyers in the United States will have Paypal, and for international orders i would recommend doing Western Union since then you know you have your money and theres no way you can be ripped off. Remember it would be even harder for you to track down someone in europe for example then in the United States if they owed you XXX.XX amount of money.

What is Western Union ? Thanks !

It's a costly way to move money....

Think of it like this, flush $100 down the drain and then reach in and pull $50 out.

Nybble, what is Western Union ? Is it a bank cheque facility ?

For web hosting plans Western Union is not worth using, however for dedicated servers, or design work it could work out very perfectly. When I had my business up a year ago I had a customer prepay for 1 year from Australia. Well he paid me $1000 from Australia to the United States, and he spent $25 dollars in fees (which I then paid him back). For more information regarding Western Union please visit www.westernunion.com

Originally posted by rajul
Nybble, what is Western Union ? Is it a bank cheque facility ?
No, it's not. http://westernunion.com

They're somewhat like cheques and bank transfer. You pay the Western Union, and Western Union send the money to whoever you want to, provided that both of you have access to one of their branches. It's pretty expensive though.

After what happened to PaySystems, you can expect:

FIRST -- More 3PPP will close.
SECOND -- 3PPP will take security much higher. defending theirselves from chargebacks, and most likely your payments won't be released unless they are 5-10 days.

in the worst cases, a few 3ppp will hold a percentage of your sales to pay chargebacks If any.

If I can open a merchant account!! :)