06-15-2005, 04:16 PM #1New Member
- Join Date
- Jun 2005
Chronopay...seemingly the last hope
After a full day of browsing this forum and others, I am completely let down.
After a full day of reading countless horror stories concerning the various third party processors, I am disgusted. To think that such a simple business ideea, which such potential, and so easy to integrate, would degenerate into the endless cases of scamming and bad service...
There is only one 3pp that I have not read bad things about. This is Chronopay. What about them? Are they withholding anyone's payments for weeks and months? Or is it a truly professional company?
06-15-2005, 04:59 PM #2Web Hosting Master
- Join Date
- Oct 2003
I completely agree. You would think that with the size of ecommerce as it is, its huge potential for growth, and the number of small businesses online, that there would be many more payment processing options available. It seems to me that the options for taking payments online, especially for those outside the US, are very limited and often unappealing. I also think that the industry is still not operating in the internet age and is still not supporting the businesses it's out to serve just as much as the consumers.
Unfortunately I don't know the first thing about Chronopay.
06-15-2005, 06:06 PM #3Texan at Heart
- Join Date
- Jul 2003
- Castle Pines, CO
You have to also keep in mind, they have not been in business too long. And companies like Paypal and 2CO have been in business for quite a number of years and have quite a few customers. And it never fails - the more customers you get, the more chances you have to make mistakes.
And then guess what - people love to complain. It is only human. We all tend to remember the problems with any company rather than the days, weeks, months that we went along our daily business, our phones rang, the money was in our bank, the internet connection was there, etc. But then that one day when the internet goes down and you cannot access your email for a few hours - that seems to stick in your head more.
The reason the companies (and MAPs do it also) withhold money is because they suspect something funny happening. And they want to protect their money.
06-16-2005, 05:11 AM #4Junior Guru Wannabe
- Join Date
- Apr 2005
Thanks for comments everyone.
Indeed we are trying our best.
But Corey is of course correct, if you try judging an e-commerce card processing company, ways to judge are different than just by complaints and EVEN (!), extremely rarely though, on the lack of payments.
When our team monitors forums, we often see complaints on companies like 2CO or Paypal which have existed long time before our company was open, but where the source of the problem usually comes from the client and not from the Payment Service Provider, yes we see it quite often.
On top of the very simple fact that card processing is extremely complex and difficult comes another simple fact, that Payment Service Providers depend on acquiring banks, who in their turn depend on Visa and Mastercard and on top of that the merchant needs to accept BOTH Visa and Mastercard when current rules of both systems make it quite problematic because sometimes they are simply contraversial. In simple words a lot of people can make a mistake even before PSP has to do anything with it and merchants of course make their own mistakes as well and it can affect easily payments as well.
For instance, we do not know what happened with PAGO and Paysystems, but we do know that a lot of companies sometimes operate in a CLEAR breach of rules and regulations. Cmon, if the website of the processor CLEARLY violates Visa or MC rules and it's a known company on the market, what are the chances that the acquiring bank behind it did not know it? And at the same time we also know that more or less outside of Chargeback fees the merchants (or PSPs as well) liability for other penalties or fines is almost unexistant , the fines and penalties DO exist but they are applied to the acquirer who is supposed to be in control of how rules and regulations of Visa and MC are adhered to, technically the merchant (and PSP) must know only what was told to them. So when these penalties come, it's a good question who pays them and who should pay them really?Ido Schiferli
06-16-2005, 01:15 PM #5The E-Commerce Answer Guy
- Join Date
- Aug 2003
- Chesapeake, VA
I think a safe choice is to always utilize a company that "plays by the rules" with respect to Visa & MasterCard - especially if you are talking about a company in the 3PP realm which has a much higher inherent risk to begin with.
There are a lot of companies that come & grow in the processing industry but the companies who play by the rules and ensure that they run their operations within the regs are the ones who will last.
In my years in this industry, the biggest problems that I've seen happen to processors are caused by lax underwriting, poor risk management (either too harsh or too liberal) or by "turning a blind eye" to what their merchants were obviously doing and by trying to stretch the rules too far to the point where Visa or MasterCard would get involved and usually the merchant would end up holding the short end of the stick at the end of the day.CDGcommerce.com - Trusted Merchant Account Solutions since 1998
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06-22-2005, 10:11 AM #6Web Hosting Guru
- Join Date
- Jan 2004
- NY USA
I guess MC and Visa want to shut down 3PP business model completely. They want to have merchants directly responsible for their mistakes.
Working with real merchant accounts is much easier for them. Easier to charge penalties, easier to control how merchants follow their rules, easy to find criminal activity and stop it.