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  1. #1
    Join Date
    Sep 2011
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    Angry Bad Experience with 2co

    I recently started using 2co and it was all good and dandy. But then we got a $400 order and it came back as fraud. I was like OK and suspended the service. Later when I check my 2co balace it was -$40. So I called 2co and asked what was going on. They said it was because the regular 2co charges. But here is the thing. Even if a order goes as fraud. They do not refund the fees. I have to pay for the fees. So now I am in the -$40 range and am looking for a new way to take CC online. I would stay away from 2co if you think there is a chance for a fraud order.

  2. #2
    Join Date
    Dec 2007
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    Well, honestly, I'd suggest doing better fraud checking on your end before allowing a customer to process a payment as well as perhaps keeping a balance in your account just in case.
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  3. #3
    Join Date
    Sep 2011
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    Well you can only do so much with maxmind. We have it on some super strict settings. Everybody gets a phone call with it.

  4. #4
    Join Date
    May 2011
    Location
    New York, USA
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    This is crazy, if the order do not go through, they should refund the fee. We have a 2co rep here, you might want to give her a pm and maybe she can wave the fee?

  5. #5
    Join Date
    Feb 2005
    Location
    Toronto, Canada
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    $40 is alot to process a chargeback, back in the day when I ran my own company I think PayPal charged $20 per chargeback if you chose to fight it and lost. I don't remember 2co charging that much about 5 years ago.
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  6. #6
    Join Date
    Sep 2011
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    Correct

    My point exactly. If the sales is reversred and what not, I should not have to pay the fee

  7. #7
    Join Date
    Sep 2011
    Location
    USA
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    61

    Well

    Quote Originally Posted by THAMAN View Post
    $40 is alot to process a chargeback, back in the day when I ran my own company I think PayPal charged $20 per chargeback if you chose to fight it and lost. I don't remember 2co charging that much about 5 years ago.
    The $40 was the processing fee. I forget what percentage 2co takes out of every sale.

  8. #8
    Join Date
    May 2011
    Location
    New York, USA
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    My thought would be same,if it was not your order, your mistake, the money was not given to you, you do not need to pay the fee. Simple. I am going to call right now and ask wats up. Will come back and share if something is good.
    Quote Originally Posted by spencerocks View Post
    My point exactly. If the sales is reversred and what not, I should not have to pay the fee

  9. #9
    Join Date
    Oct 2004
    Posts
    2,825
    Quote Originally Posted by spencerocks View Post
    The $40 was the processing fee. I forget what percentage 2co takes out of every sale.
    It's $40 - move on. It's not worth it. $40 is nothing.

    If you had a real merchant account, it would work exactly like that too. Processing credit cards isn't like taking PayPal - you don't get the fee back if the charge is refunded - for any reason.

  10. #10
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    Feb 2005
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    Toronto, Canada
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    Quote Originally Posted by Nick H View Post
    It's $40 - move on. It's not worth it. $40 is nothing.

    If you had a real merchant account, it would work exactly like that too. Processing credit cards isn't like taking PayPal - you don't get the fee back if the charge is refunded - for any reason.
    It is alot, its $40 out of his pocket, 10 fraudulent orders and its $400.
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  11. #11
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    Quote Originally Posted by Nick H View Post
    It's $40 - move on. It's not worth it. $40 is nothing.

    If you had a real merchant account, it would work exactly like that too. Processing credit cards isn't like taking PayPal - you don't get the fee back if the charge is refunded - for any reason.
    It is norhing if thats happening once in a life, what if you get 100 of these fraud order the same day? Or 1000 in a month? That is what most of the young hosters hardly makes in a month.

  12. #12
    Join Date
    Oct 2004
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    Quote Originally Posted by THAMAN View Post
    It is alot, its $40 out of his pocket, 10 fraudulent orders and its $400.
    If you're running a sustainable business, $40 or $400 should not really be a huge hit to your income. Processing fees, chargebacks, and chargeback fees are an inherent cost of doing business. Every business owner should be prepared to pay them.

    2Checkout still has to pay processing fees on that transaction - fraudulent or not. If you feel $40 is a lot of money, then why is it that you feel 2Checkout should be out that money? Or do you feel that only large established businesses should have to suffer standard operational costs?

    Not to say I like 2Checkout, because I hate them with a burning passion, but they're not in the wrong here. It's a cost of doing business that the OP should be prepared for.

    It's frightening how many people out there think you can just throw a website online, take payments, and have absolutely no risk or investment in getting your business going. Hate to break it to everyone, but that's not how business works - and not being prepared financially to run a business is digging the grave on the business before it even starts.

    Just my 2 cents. No refunds.

  13. #13
    Join Date
    Oct 2004
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    Quote Originally Posted by SeriesN View Post
    It is norhing if thats happening once in a life, what if you get 100 of these fraud order the same day? Or 1000 in a month?
    If you're getting that many chargebacks, then you should be reviewing your business practices and seeing what you're doing wrong that's causing you to get all the fraud, and putting better business practices in place . Transaction fees and chargebacks are a part of doing business. If you're not prepared to handle that, you shouldn't be in business. Period.

    Quote Originally Posted by SeriesN View Post
    That is what most of the young hosters hardly makes in a month.
    Again, if you want to run a business, you need to understand it takes a lot more than putting a website online and having absolutely no financial backing behind the business other than what you hope to earn from it.

  14. #14
    Join Date
    May 2009
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    United Kingdom
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    Their fees are quite heavy but their support/service is simply amazing.

    As others have suggested there shouldn't be that many orders that get passed Maxmind that turn out to be fraud. It definitely happens once in a while but the large fees are likely due to the high payment.

    It would be nice if they replied to this thread with details about their fees though as I have experienced this also.

    Again, if you want to run a business, you need to understand it takes a lot more than putting a website online and having absolutely no financial backing behind the business other than what you hope to earn from it.
    I wouldn't say you have to invest heavily in terms of capital but without any capital there must be a greater investment of time which is much more valuable in the early days.
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  15. #15
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    Oct 2004
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    Quote Originally Posted by zomex View Post
    I wouldn't say you have to invest heavily in terms of capital but without any capital there must be a greater investment of time which is much more valuable in the early days.
    Agree with you 100% there. Time, time, time, MUST be invested for a successful business. Paying closer attention to your orders, getting to know your customers better, establishing a relationship with them - that's going to make you more successful. How? Your satisfaction rates will go up, word of mouth will increase (your BEST and CHEAPEST method of advertising), and you'll be reducing fraud.

  16. #16
    Join Date
    Feb 2010
    Location
    Hong Kong
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    but 2co payout term is good

  17. #17
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    May 2011
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    These are not chargebacks. What op said, some one placed order, did not pass 2co fraud check so the payment didnot went through, but 2co still charged the provider with the fees and are not willing to refund. Hows that fare? Your compitator can make you bankrupt like that. Note: Op never received the payment but was charged with the fee.

  18. #18
    Join Date
    Feb 2010
    Location
    Hong Kong
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    106
    we using 2co for nearly 3yrs and did not relise that 2co got such a policy. usualy this only happen when customer do a cc chargeback then 2co will deduct the amount and the chargeback fee.

    Did you ask 2co what was the charge for? 2CO transaction fee is 5.5% of the transaction total, plus $0.45 for each transaction. if being charge for processing fee only should not be $40

  19. #19
    Join Date
    Jun 2005
    Posts
    3,139
    What? No way. That must be the charge back. 2CO doesn't charge you a processing fee if the order is refunded or is fraud. Not last time I checked.

    Also, 5.5% + 0.45 cents from 400$ would be 22.45$ not 40$.

    So no, that cannot be the processing fee, It seems its the charge back fee.

    2CO will not charge a processing fee if the order was not approved. Im 100% sure about that. You should contact them because its not right.

    Even if they did charge orders that where not approved it should be 45 cents only, the processing fee, because if they did not took any money from the customer card they cannot charge the 5.5% fee over it. Basically if they mark an order as fraud, no money is taken from the card at all.
    Last edited by nibb; 01-28-2012 at 02:29 AM.
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  20. #20
    Join Date
    Oct 2007
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    3,991
    Quote Originally Posted by nibb View Post
    .....2CO doesn't charge you a processing fee if the order is refunded......
    Not true:-
    http://www.webhostingtalk.com/showpo...8&postcount=14

    They will not refund the transaction fee even if you refunded the payment.
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  21. #21
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    May 2011
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    New York, USA
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    You know what, I am going to call em tonight and if that is true and 2co do not refund the fee for refunds, I will stop using it

  22. #22
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    May 2011
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    New York, USA
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    Edit: multi post.
    Last edited by SeriesN; 01-28-2012 at 02:43 AM.

  23. #23
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    May 2011
    Location
    New York, USA
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    Just found this online might explain op's fee.http://desktopserver.com/2checkout-f...n-they-let-on/

  24. #24
    Join Date
    Dec 2010
    Location
    India
    Posts
    55
    As far as i know 2checkout is the best online payment gateway and they should never charge a processing fee if the order was not approved.

  25. #25
    Join Date
    Mar 2003
    Location
    Canada
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    8,861
    Something doesn't seem right here... we get the odd charge back and never once were we billed a fee in addition to the money charged back?
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