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  1. #1
    Join Date
    Mar 2004
    Posts
    33

    Problem with payment solutions

    Hi,
    I contacted my bank to open a new account to use it for 2checkout transactions ,the bank agent told me that it's not a good solution and my account can be closed without any notice if any fraud is detected (one of my customers uses stolen cc's)
    he says that 2CO and other solutions doesnt totally cover the fraud risks so in most cases it's the bank who will risk...
    Any idea ? how can i assure that ?
    my bank is Société Générale (France)

  2. #2
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
    Posts
    7,189
    How would they know about any fraud? That is usually handled on 2CO's end, right? 2CO pays every couple of weeks, I think. 2CO could withhold your money if they suspected fraud.

    Tom should have a pretty good answer, you might have to wait the weekend though.

  3. #3
    Join Date
    Mar 2004
    Posts
    33
    The agent sayed that it's possible before 6 months that the cc owner can declare the fraude so 2CO cover 2 weeks and not the entire period...

  4. #4
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
    Posts
    7,189
    Yes - the CC owner usually has 180 days to say it is fraud, etc but are you still with 2CO at that time? Assuming that you are - it is still going thru 2CO & not the bank. Because the chargeback is going thru 2CO.

    If I buy something from you, and say in 3 months I call Visa & tell them the services were not what I expected. Visa is going to contact 2CO, since that is the processor - not your bank. 2CO is going to refund them their money at that time. It is between 2CO & the consumer. Not the bank.

  5. #5
    Join Date
    Jan 2004
    Posts
    8
    My questions are...

    Is it not a tremendous risk for any third party processor who supports product sales?

    How do they know the products were shipped and when?

    Is it not Visa/Mastercard regs that you cannot charge the card until the product is shipped?

    Can't some scammer come along and sell a bunch of nothing and leave 2checkout holding all of the chargebacks. Seems much more risky being a third party processor for tangible items than non-tangibles, no?

    Why do they not have to be a registered IPSP suchs as CCbill, Epoch, and Ibill and register each sponsored merchant who they porocess for?

    Mark

  6. #6
    Join Date
    Mar 2004
    Posts
    33
    coreybryant the agent said that 2CO will contact the bank to get the money back...
    that's the problem

  7. #7
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
    Posts
    7,189
    I do not know the rules for 2CO & them removing money out of your checking account. But if you have $1,000 in your 2CO account, and someone did a chargeback, I doubt that 2CO would take the money from the bank (if the chargeback was say $50) while you still had $1,000 in your 2CO account.

    Plus if it was a legitimate chargeback, why does the bank care? It might be different overseas, but I have not heard of a bank telling someone that opening up another bank account to have a CC processor dump money into it is not a good solution.

  8. #8
    Join Date
    Aug 2003
    Location
    Chesapeake, VA
    Posts
    3,381
    Yes, it is definitely a big risk to be a third party processor and even more so for tangible products since the ticket prices are typically higher (hence greater effective fraud risk) and since the means of verification are more complicated.

    It is true that in -most- circumstances you are not supposed to use the funds from a credit card sale to pay for the actual product and to only charge upon shipping. This can be done with a pre-auth to reserve the funds followed with a capture upon shipping.

    And yes, a scammer could definitely wreak some havoc if they had malovent intentions.
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  9. #9
    Join Date
    Jun 2001
    Location
    Partizansk, Russia
    Posts
    74
    Originally posted by coreybryant
    Yes - the CC owner usually has 180 days to say it is fraud, etc [.....]
    My CC Bunk Agreement gives me 30 days only for my Visa Classic card...
    Regards,
    SAV

  10. #10
    Join Date
    Aug 2003
    Location
    Chesapeake, VA
    Posts
    3,381
    The 180-day (6 month) window is typically the maximum amount. Each credit card issuer, however, can set a different limit for their cardholders and this limit may be less than the above.
    CDGcommerce.com - Trusted Merchant Account Solutions since 1998
    Many thousands of successful, growing businesses benefit from our expertise every day. You can, too!
    We help merchants to eliminate gateway costs, reduce & mitigate fraud and achieve streamlined PCI compliance.
    Learn more today at http://www.cdgcommerce.com - we look forward to helping your business grow!

  11. #11
    Join Date
    Mar 2004
    Posts
    33
    i'll contact 2CO to see who we'll be implicated in the case of a charge back due to a fraudulous transaction and will get you informed soon..
    thanks a lot for your support

  12. #12
    2CO and your bank acc is two different things.
    You can use any bank account with 2CO and there’s no any fraud risk for your bank account.
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  13. #13
    Join Date
    Mar 2004
    Posts
    33
    123x the problem is that i want to know :
    In cas of a fraudulous transaction declared by the cc owner after 30 days for example ,2CO will call me to take the charges back i need to know how 2CO take that charges ?
    does 2CO contact my bank without my knowing and take the charges or contact me to make a money transfert or proceed as a bill wich will take the money from my bank account automaticly

  14. #14
    Join Date
    Mar 2004
    Posts
    33
    here's the response of 2CO to my problem :
    This is a message to advise you that we have recently worked on your ticket entitled
    Fraud Responsability
    Our Response:
    --------------------------------------------------------------------------------------
    I have no idea what the policies or procedures are for your issueing
    bank. As for our end , we expect any cardholder to contact our tollfree
    in the event they do not recognize a charge on their statement with
    our 2CO.COM representing the sale. Since we do not charge venders
    for fraud protection ,each vender is responsible to at least follow
    up or investigate their suspicious sales although we do fraud protection
    for the vender as well. Not sure how more specific I can be in answering your question, thank you
    ______________________________________
    Thank you
    to be clear ,i didnt understand a word

  15. #15
    Join Date
    Mar 2004
    Posts
    33
    no one's interested ?

  16. #16
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
    Posts
    7,189
    Daru - the thing is - your bank should not be doing what they are. I think we are missing something. When you open up a bank account over there - do they ask you what the bank account is for? Maybe that is what we are missing. Why can't you just open up the bank account & forget what the bank rep told you?

    You are baiscally mixing apples & oranges. 2CO puts the money into your bank account. 2CO handles the fraud - not the bank. Or did you tell the bank that you want them to be the processor?

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