If you use 2CheckOut, you might be interested in the email that they sent out today! It really doesn't sound like good news to me.

They are informing us that we have to provide our good before they will charge the card of a potential client (so now we have no saftey net if a new signup is a fraud). As we know, in our industry that isn't an easy thing to do. We kind of rely upon our cc processing company to tell us if the card is good before (a kind of buffer if you will) we provide the service over to our client. Now we are at the mercy of each and every signup....

We are not happy....please, if i'm wrong here, tell me!

:angry: :confused: :angry: :angry:

That dosent sound good.. seriously.. If 2CheckOut had any intelligence they would know about fraud..

I"m not real happy about it either, but there might be another side to the coin.

If we're now selling to 2checkout - and they're reselling our services - thats immediate delivery - let them handle the billing mess :) (I know, wishful thinking)

Credit card regulations require that the potential customer be informed
of 2CO's role as the actual "seller" prior to the payment portion of
the process. This requires a text disclaimer to be posted on your
website that indicates:

"Some credit card and e-check purchases will be sold by 2Checkout.com,
Inc. - Ohio, U.S.A. Products or services provided by <your company
name>"

This is not good;
--------------------------------------------------------------------------------
If you do not respond or update the page by November 25, 2002 you
will be notified that your account will be suspended and no further
sales will be processed on your behalf effective 12:01 AM on
December 1, 2002.

2checkout is turning into $hit... they took a LARGE ammount of money from our account for no reason :angry:

this thread has the email in it, and already discussing.

http://webhostingtalk.com/showthread.php?s=&threadid=89842

I really don't want 2Checkout representing my company and essentially reselling my service! They don't exactly have the best track record if you know what I mean!:angry:

Which is why I am canceling my account tomorrow

So before they charge there card we need to provide the service first?

Basically. And on top of that, they are stating that if you don't login and agree to the new terms, your accounts will not bill and your account will be suspended.

Anyone wanna say where they are going to take their business for CC processing?

IMO, i dont see why so many people are complaining. 2CO has to provide services in accordance to the contract setup by their merchant account provider. if you aren't happy with the changes they've made/are going to make, you have every right to leave and/or not use their services. the only reason you should be complaining is if they've withheld money from you for no reason or if they havne't provided the advertised level of service (ie if the server is always down, etc)

What if you are away on holiday!?

Account Establishment Fee
The Supplier agrees to pay a setup fee for the establishment of an account with the Company.

This fee is $49.00 USD.


What the!? do we have to pay again?

Well Akash, I appreciate what you are stating, but unfortunately like I stated before, we as a hosting company provide a digital good that is easily exploitable one we provide them the opportunity to use it, and by knowing if that person is using a valid credit card acts (in some sense) as a buffer. Now, we are left out in the wind to be liable.

I totally understand 2CheckOut's role here but I haven't heard anything from any other cc processing company about this.

Cuz if it came down from Visa, where are all the other companies with their bad news to their merchants?

Originally posted by Darth
So before they charge there card we need to provide the service first?

Go to their forums and read up on the whole story, they are doing this to get around the new Visa rules, it is either this or you have to pay $750.00 a year to Visa to continue in business.

They are going to authorize the card for the amount you sell the product for this means the card has been checked for fraud and verified but the funds are not transfered to your account until you check off the the service or goods have been shipped, you have 7 days to do this after the sale.

Again, I reiderate...Where are all the other CC Processing companies on this and why have we heard nothing from any of them about changes due to Visa's rules?

Whats the forum url?

Thanks

Cuz if it came down from Visa, where are all the other companies with their bad news to their merchants?

From what I recall, Hostcharge will be implementing similar policies and changes to their TOS. HC will become a reseller of your services. And from the ccbill/ibill rumor mill, their changes take affect december first...

edit: fair warning to everyone...start looking for your own merchant account NOW, it seems that this new way of providing services (ie, where the cc processing company "resells" your services/products) is just a loophole in the VISA/MC merchant agreement. I'm sure visa/mc and other cc companies will be fixing this loophole once word gets out...

Perhaps I misunderstood something here... Not charging the card until the service is setup is different than verifying the card and fraud screening first, setting up services, and then POSTING the charges to the card.

Credit Cards have two levels - first you authorize, and then you post. They're adding in the middle...

Again, I may have misunderstood.

Don't suppose anyone knows the forum url? and also do you have to pay another $49?

Thanks :)

If you are a customer just log in and there is a link to the forum at top of every page.

I don't want to accept the new rules untill I find out if you need to pay another $49 :D

Log in say no to the new rules and then go to the forum you can say yes to the new rules up until the 1st of Dec if you dedcide to go that way. At least that is what it says in the forums...

lol still 1 question :D

Here you go ...http://support.2checkout.com/forums/main.php

thanks monte :) *shoots 2checkout :D*

$49 is to establish a new account guys, as existing merchants of 2Checkout you will not have to pay. They just used the new signup TOS instead of making a special one for existing merchants.

Having a lawyer look over the TOS before I go anywhere with it. Really appreciate 2Checkout's fraud watch service (at 5.5% -soon 5% - this is cheaper than verifying all accounts in-house), but when someone deals with your money you have to be serious no matter how friendly they are with you. I'd recommend the same for anyone doing a fair volume of business with them.

Sincerely,

-Matt

I don't see Paypal doing anything like this.... this is purely insane!

Notice this provision:

Credit Reporting
Supplier grants the Company the authorization to obtain standard factual data credit report(s) through a credit reporting agency chosen by the Company.

Their terms are changing so radically I gotta get out of there, but a merchant account just isn't practical at this point.

ATM Cards: $25 plus a $25 deposit? Why not just offer payments to Paypal - wouldn't that be a satisfactory alternatitive?

I dunno, this thing just stinks, IMHO.

Any suggestions on good true merchant account services or providers without all of theses probs?

I posted this elsewhere, but i'll also post it here with additions.

a couple of quick "clarification" comments if I may.

1. It says "some credit card sales...." simply because your site may have multiple processors (ie...u may accept PayPal). Those sales wouldn't be handled by us. If you can come up with workable wording, that encompasses this concept, please send it to me, we'll certainly consider it.

2. We've always had the 'limited liability' for selling the products. That is the reason we've placed so many items on our prohibited products list.

3. e-Products & services (like webhosting) will not require you to manually mark the item as shipped.

4. PaySystems is a reseller also, in much the same context.

5. The 7 day maximum authorization policy is a Visa Regulation.

5. The posted rate for our services (hence the rates in the TOS) are 5.5% + $0.45 per transaction. CURRENT, ACTIVE (both prior to Nov. 18th) accounts, that stay with us into the New Year will have their rates reduced to 5.0% + $0.45.

6. The $49.00 is for establishing new accounts. Not applicable to current vendors (thanks for clearing that up Matt).

7. The card authorization process for non-tangible goods/ services has not changed. Cards are authorized (and screened), and then money is held (just the same as when you certify a check at your bank)...until the Card is charged. In this case it will be charged right away.

8. The ATM cards are an OPTION. They've been requested by our International Vendors for a year now. We would never use PayPal to pay international accounts for a couple of reasons. Firstly, they do not service all the countries we service. Secondly, should they choose to "freeze" our account(as posted elsewhere on these forums), having upwards to $1,000,000.00 tied up for 5 months is not an option.

I hope this clarification helps.

so... if they 2CO dont give you the money... .revoke the account... simple

So Tom, are you saying that basically for hosting and our existing reoccuring charges there really isn't much of a change (basically this is more for tangiable type goods)?

Posted by Wadsworth at 2co Forums:

If you use the 30 day "money back" guarantee all your transactions are refunded to the customer, and cancelled.

Originally posted by TomD

3. e-Products & services (like webhosting) will not require you to manually mark the item as shipped.


Then how will you know if we delivered the service? Will you be emailing our customers?

Tangibles and intangibles use a different routine. There will be a new setting in your Admin panel, where you select the thpe of product you sell....and that will set the account to mark as "shipped" your intangibles.

There will be spot checks to verify that Vendors are not abusing the system.

I thought I read on the 2co forums that they removed the need for the 'shipping' mark for digital goods aka webhosting/design.