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  1. #1

    Please help: credit card question!

    Hello,

    I have a 2checkout account, but i have a client who has a credit card that he owns, but he has two homes, one in Amercia, the other in Indonisia. He is currently in America (and will be for several months) and with 2checkout, he is trying to use his indonisian credit card to pay for an item, but 2checkout will not let him due to them checking I.P's are in the same country as the credit card billing address is at.

    He has mailed 2checkout and they are unable to help. I therefore need an alternative form of merchant account or a method to accept his credit card

    Thanks
    Daniel

  2. #2
    Join Date
    Mar 2003
    Posts
    2,677
    Is it worth the effort to get a merchant account for one charge?

    If so, do a search here for merchant account and you will find many suggestions. I use CDGCommerce and am very happy with them. I am not sure if you are located in the US though. If you are not, that can complicate things in general regarding merchant accounts.

    If it is not worth the effort, you may want to have the customer call 2CO. We had one client do this as they were out of the country so the IP was not the same as their home address country. They were able to call 2CO and authorize the transaction. I cannot remember what country they were in though.

  3. #3
    As Matt has indicated, dont get a merchant account for just one transaction. If it makes sense to start using a merchat account for your business, then thats a whole different story.

    2CO should be able to authorize the transaction with a signed form from the customer as well as proof of residency in the country from which the credit card was issued.

    Hope this helps...
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  4. #4
    Join Date
    Mar 2003
    Location
    San Jose, CA
    Posts
    12
    i haven't done much homework on this... yet,

    but $49 Setup fee + .45 per transaction + 5.5% transaction amount sounds awfully high.

    i would think somewhere around 2% is where the market's at.

  5. #5
    Originally posted by hoihtah
    i haven't done much homework on this... yet,

    but $49 Setup fee + .45 per transaction + 5.5% transaction amount sounds awfully high.

    i would think somewhere around 2% is where the market's at.
    Do you mind if I ask where you saw those numbers?

    I think you're right, they look pretty high (even by Canadian standards )
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  6. #6
    Join Date
    Mar 2003
    Posts
    2,677
    The fees are higher using a third party service such as 2Checkout due to the higher risks involved. Part of the third party portolio is comprised of businesses that do not qualify for their own merchant account and that is an inherant danger.

    It's important to note that that is not the only group that uses third party merchants....far from it to be honest. There are several other groups that use them....non-US citizens or businesses based in foreign countries where getting a US merchant account is nearly impossible. Start-ups may also use them as they are not yet established although these days that would not necessarily prevent you from getting your own merchant account. A third group is those who do not do a high volume of sales. For them, the higher fees are actually cheaper than if they had a "real" merchant account.


    It comes down to how much volume you have and the availability of merchant accounts in your location. For some it is cheaper to use the third party merchants, for some it is not.

  7. #7
    Join Date
    Mar 2003
    Location
    San Jose, CA
    Posts
    12
    www . 2checkout . com/rates.htm
    (i have less than 5 posts... so i can't make a linky yet.)

    unless i'm looking at some foreign currency... that's where i got my rates from.

  8. #8
    Phew, that makes sense (for 3rd party rates) - I thought they saw a merchant provider like PSIgate, e-online data or something similar advertising those rates...
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  9. #9
    Hi hoihtah,

    Those rates do make sense for a 3rd party provider (as Matt has pointed out).

    It still works out "cheaper" to go with a 3rd party provider (like 2CO) until your monthly transactions hit around $1000.

    I put cheaper in " " because thats just taking into account straight primary costs (set fees, merchant rate, etc, etc)

    Secondary costs (admin, chargebacks, etc) can be a lot higher with 3rd party processors, therefore it may make sense to make the switch before the magic $1000 mark.
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  10. #10
    Join Date
    Aug 2003
    Location
    Chesapeake, VA
    Posts
    3,381
    Very true... each business has its own "magic $X mark" really when you factor in the various costs and the forecasted volume, # of trans, etc.

    The other thing to keep into account is the difficulty in switching clients -from- a third party processor -to- an individual merchant account at a later time.

    If you have only a few customers, no biggie. But if you stick with a 3rd party processor and your business takes off quickly, you might have been better off starting with your own merchant account.

    However, as mentioned earlier in this thread... international merchants often have few options and so a 3rd party processor is the best bet.

    In terms of the much higher % charged by folks like 2CO... I can't say that it is unfair considering the much higher risk that they are taking.

    Remember - if a third party processor takes on too many bad merchants and takes too many chargeback hits, they are out of business along with all of their merchants.

    Of course, that is likewise one of the risks in -using- a third party processor too.
    CDGcommerce.com - Trusted Merchant Account Solutions since 1998
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  11. #11
    Join Date
    Nov 2002
    Location
    ON, Canada
    Posts
    290
    I have many troubles with 2Checout, it doesn't have good processing, like using WHM AP, I cannot allow clients to signup using the coupon, since it has no affect on 2co, I have decided to go with Merchant Account, much easier and charges less too, I mean c'mon I am tired of payin over 5% interest and than some reserve fee is held.

    Regards,
    Ali

  12. #12
    Join Date
    Mar 2003
    Location
    Singapore
    Posts
    763
    Dear defer,
    I assume you received an email from 2CO warning you that the order is high risk? What did you receive after that email?

    We did meet such situation before and 2CO sent us a mail saying that the order passed their manual fraud check. Of course, no problem with the transaction.

    You might be interested to call 2CO or email them at fraud@2checkout.com. I received their reply in less than 24 hours there
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  13. #13
    Join Date
    Aug 2003
    Posts
    643
    Just another reason why I love 2checkout!

    A company that I got a product from wanted me to pay threw 2checkout...
    Ok, I did (tried)

    About 8 times, each time 2checkout said the CVV2 number was incorrect and it did not go threw... the CVV2 number was just fine, I have had this problem before this, I think its a glitch in their system

    When I had a 2checkout account (Before I dropped the zero for a hero) one of my clients, who entered their card number and CVV2 number right it got marked as high risk cause they said he entered it wrong, only catch is both of these cards (mine and his) were Visa and were just activated (Like, within 72 hours of the transaction) so I am not sure if its a bug or just someones database not updating

  14. #14
    Join Date
    Mar 2003
    Location
    Singapore
    Posts
    763
    When I had a 2checkout account (Before I dropped the zero for a hero) one of my clients, who entered their card number and CVV2 number right it got marked as high risk cause they said he entered it wrong, only catch is both of these cards (mine and his) were Visa and were just activated (Like, within 72 hours of the transaction) so I am not sure if its a bug or just someones database not updating
    I agree with you. Out of 10 orders I receive, 8 will be marked as High Risk Order, although some do not seem suspicious to me
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  15. #15
    Join Date
    Aug 2003
    Posts
    643
    That wasn't just me?
    2checkout marked 1 of my orders as ok (The only one that was questionable)

    And, one of them they made the guy fax them his card numbers, call them, email them, they wouldn't accept it till I told them my life story and the buyers, also on top of that, I don't think its 2checkouts business to do that, they are to process payments not make sure everything meets what they call to be "ok"

    They marked one payment as "high risk" just cause the guy changed the card..... (Atleast thats what they told me)

    And it seems to me the only thing they listen to is legal actions and telling them you are taking money, everything else I said to them went over their head and out the door.

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