Currently I am using PayPal to accept credit card payments, but after reading some more about them I'm thinking I should just pay the $49 and switch to 2checkout.

I have a question. How does 2checkout handle chargebacks? Do they give you a notice first and give you a chance to refund the money or do they just do it?

And I know a lot of merchants will terminate your account if you receive too many chargebacks. Is 2checkout pretty good about this? I'm guessing they must be since a lot of people here seem to be using them.

Also, what if you refund someone's money and they try to do a chargeback anyway? They could steal twice their money back by doing that. How can I protect myself from this?

Thanks for all of your help. :cool:

Jon
AchieveHosting.com

I am using 2checkout for a while and always was happy with them. However, am luckily enough as I did not need to ask for a refund. I am not sure what you mean by "chargeback"....

I don't think I am helping here, but I wanted to stress that so far, they were really helpful and "right"...

Thanks for your reply.

I don't mean that I am going to ask 2checkout for a refund.

What I mean by chargebacks is when a customer signs up with me and for whatever reason doesn't want to be hosted by me anymore, but instead of asking for a refund (which I would give within 30 days) they just do a nasty little chargeback on their credit card to get their money back.

One thing I thought of was, what if they ask for a refund AND do a chargeback?

Jon
AchieveHosting.com

Originally posted by achievehost

One thing I thought of was, what if they ask for a refund AND do a chargeback?


Is that possible? If you have a transaction # and you refund that transaction, then they cannot ask a chargeback for that transaction, can they?

Good questions... I'd love to know for sure...

Originally posted by achievehost
Currently I am using PayPal to accept credit card payments, but after reading some more about them I'm thinking I should just pay the $49 and switch to 2checkout.

I have a question. How does 2checkout handle chargebacks? Do they give you a notice first and give you a chance to refund the money or do they just do it?

And I know a lot of merchants will terminate your account if you receive too many chargebacks. Is 2checkout pretty good about this? I'm guessing they must be since a lot of people here seem to be using them.

Also, what if you refund someone's money and they try to do a chargeback anyway? They could steal twice their money back by doing that. How can I protect myself from this?

Thanks for all of your help. :cool:

Jonathan Bennett
AchieveHosting.com


Hi,

We try to get the customer and the seller together when we can. We would prefer that they work the situation thru. In most cases it was a lost email or incorrect address that was the culprit.

We don't always receive notice first. If a customer contacts the Credit Card company directly, we lose most any opportunity to put you into a "refund" position, because the chargeback will be in process. That sucks.

As for dropping Sellers with a high rate if chargebacks. My answer is "In a heartbeat". We will not carry a Seller who does not deliver on goods/services as advertised.

If you issue a refund (credit) to a customer, it doesn't count as a "chargeback" on your account.

I've never seen a situation where the credit card company would proceed with a chargeback after a refund has been issued.


TomD

<<Please set up a signature (see PROFILES button above)>>

Chargebacks occur because:

a) the person holding the card reports a problem with a transaction to the card issuer
b) the card company contacts us to advise us of an issue

PayPal has no say in chargeback issuance, but we do process them when they are received. Chargebacks are always a risk when accepting credit card payments.

We will fight the chargeback with the cc company if we can show that a refund has been issued to the party filing the chargeback.

(The trick with "virtual" products is that they are not a tangible item per se).

While chargebacks draw a fair amount of attention, they are actually fairly rare. Much of stopping a chargeback has to do with knowing your customer (don't do business with countries not on PayPal's list of countries...some have high rates of fraud, such as Russia, Ukraine, Malaysia, Thailand,etc.)

Hi Tom,

That sounds good, sounds like you try to help people so that chargebacks do not happen.

I agree that sellers with a high rate of chargebacks should be dropped, but it sucks if all those chargebacks are because of fraud because then it's not the web hosting companies fault.

It seems though that that is pretty rare so the only sellers who are terminated are the ones who are truly bad. Very good... :agree:

Just curious, what for all of you out there is your average number of fraud/chargebacks a month? I see at PayPal that they have to type in addresses and things like that, so I'm sure that helps protect against fraud. Especially (in the case of PayPal), if they're a Verified account.

And Tom, what does 2checkout consider a high rate of chargebacks?

Thanks everyone for all of your information. I'm learning how to protect myself better against fraud (I've seen people lose a lot of money because of it in the past years).

I guess chargebacks are just part of the nature of the beast.

Jon
AchieveHosting.com :wavey:

I do it differently. Its easier this way. I do like if they say order something for 9.95/mo and if they want a refund I just cancel their account and I send them a money order of that money through mail!

TomD, what if the chargebacks are due to fraudent orders, rather then someone being dis-satisfied with service (or not delivering as promised, etc.) ? :confused:

Originally posted by TomD

I've never seen a situation where the credit card company would proceed with a chargeback after a refund has been issued.
TomD
tom@2checkout.com
<http://support.2checkout.com/forums/>

I've had the following happen though:
- got charged twice for a domain renewal (nsi)
- called em up, got the answer "mail/fax us your credit card statement and we'll look at it" (I get my statement monthly)
- so I called visa... requested it to be straightened out by them
- visa did a chargeback/refund? on one (both had a transaction number with just 0's in it)
- all was well, for 2 months, then nsi refunded me the other charge!
- another month later nsi complained that I didn't pay! lol... well, DUH!

anyhow, I've had the following with revecom though, let's say a charge was made in usd dollars, however my card is a canadian cc. The 'refund' uses a different exchange rate, but other refunds with other cc processors were exactly the local amount spend.... so I think revecom issues a credit isntead of a refund.... or am I wrong there? 'cos both transactions #s are different... anyhow... then it would be possible I think.