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  1. #1
    Join Date
    Nov 2002
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    Big Apple (I Love NY)
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    1,108

    Those familiar with CC Risk Departments...

    We're currently dealing with ours because of a chargeback that was received last month. Firstly, I'd like to say that this has been the most delayed process I've ever experienced with any merchant account provider. The individual that is assigned to our review is certainly not helpful at all, and at times can be rather .... (the exact word doesn't come to mind.)

    Anyway...all documentation they have asked for was given to them from 90 day bank statements to all our invoices, etc. The problem comes in now when they ask for documentation that does not exist.

    Because we're listed as a web hosting merchant they want a contract between our company and our datacenter that clearly shows our business relationship, terms of service, and authorization to use their racks for our business. Now I've used such contacts in the past when dealing with a couple colo providers on a long term basis (not month to month.)

    The thing is, we are not using colo. All our servers are leased on a month to month basis from SoftLayer. I've tried explaining this to the individual, but instead I have it thrown back in my face that without such documentation we can't possibly be a proper web hosting company and just have "friends with racks/servers that have the contracts that are lending us the servers."

    I'd like to say SoftLayer, has been the biggest help in this. This is not a review for them, my partner already posted one a little while ago, but figure I'd throw it in anyway. They have bent over backwards several times to assist is with this increasingly urgent matter.

    We started by having a rep at SL send us their TOS in PDF form, a custom letter with contact information, and our last rather large paid invoice. This was rejected as it wasn't a contract...Days later (communication is very difficult, as this person does not return voicemails, I only get him when calling others several times to be transferred over) after getting exactly what they were looking for in the contact, SoftLayer and their legal department drafted a contract for us which had all their DC/company information, lance's signature. thier entire service agreement, our company information, and my signature. I faxed this to them first thing Friday morning, but of course communication is incredibly slow and after 3 phone calls, a voicemail, email, and memo on the fax no communication was made - so we'll have to wait until Tuesday.

    ------------

    This was supposed to be a short simple question, but turned into a story.

    Anyway, 2 questions. For those that provide CC processing services to many hosting companies that lease their servers from large server companies...is this kind of documentation required? If not, do you have any recommendations for how we can describe to him our business functions.

    Worse case scenario...this whole ordeal has greatly turned me off to their services. Communication is atrocious (with this department at least) and this process has taken well over a month - CC funds have been on hold since the 16th of November (thank god we pull in alot via paypal also).

    We're looking to change to a different processor that provides auth.net. These guys charge a cancellation fee, but several K in funds being held is not conducive to our business model and I'd rather just pay that fee. The problem is, what do we do about those funds that were already processed...? Should this company decide "We're not a hosting company" He has said several times if I cannot produce that contract they cannot accept the charges...what does that mean? Will they refund them all..? At the end of the day, I guess we could send out notices and reverse the invoices in modernbill & ubersmith to rerun them again, but would there be any other way...

    Sorry for the long post, thanks for the help, happy holidays.
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  2. #2
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
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    7,189
    Have you maybe contacted your agent also? Sometimes they can help with this matter. Usually they can and speed things along. Sometimes it is just the way everything was set up and maybe it needs to be reviewed.

  3. #3
    Join Date
    May 2003
    Posts
    267
    OK, let me intrude here. First you started from one chargeback and then it turned to your processor freezing your funds.
    Now, my questions is WAS IT RELATED TO THIS CHARGEBACK ?
    If yes, then WHAT IS THE REASON CODE FOR THIS CHARGEBACK? You have to clearly distinguish between fraudulent and non-fraudulent based. (By my experience I may say that later are much worse).

    Getting away from processor that holds your funds and gives such lame explanation is a good idea regardless how this case will be resolved. Treating customers this way is not acceptable IMHO.
    Amirocms.com

  4. #4
    Join Date
    Nov 2002
    Location
    Big Apple (I Love NY)
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    Quote Originally Posted by Leksus
    Now, my questions is WAS IT RELATED TO THIS CHARGEBACK ?
    Yes, according to what I've been told it is related to the chargeback from last month (early november), which was indeed fraudulent.

    Quote Originally Posted by Corey Bryant
    Have you maybe contacted your agent also?
    I have not thought to do this, but will attempt this now.
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  5. #5
    Join Date
    May 2003
    Posts
    267
    What you have been through with this single chargeback is ridiculous. If you do not have many of them (and I assume you don't) and stay below 1% ratio, processor should have simply deducted funds from your account including chargeback fees at the end of the month and get on their way.

    Asking documents and TOS after they have already approved you is very non-professional. I suggest not walk, run from this company and get an account with processor who understands your business. (BTW, could you please PM me their name? We refer merchants to various processing companies and I surely do not want to send business to a company like this. Thank you).

    *I hate to think if this was a personal US VISA transaction and you could have avoided all the hassle by simply letting this transaction through Verified by Visa authentication.

    Good luck.
    Amirocms.com

  6. #6
    Join Date
    Aug 2002
    Location
    Seattle
    Posts
    5,512
    Steven,

    I used to be a "Risk Associate" and later a manager for a major credit card bank. I'll be as helpful as possible but i'm afraid that won't do you much good.

    As a vendor you are essentially accepting the risk of any chargebacks that your customers may wish to pursue and it needs to be taken into account that a small percent will contest their charges and there isn't much you can do about it unless you have a signature receipt for services rendered.

    No matter what paperwork you provide your former customers can continue to represent the dispute until it goes to arbitration. You'll have to spend something to the effect of $500 (depending on your merchant provider) to accept arbitration and then a panel will hear the case.

    In most cases its better to let it go.

  7. #7
    Join Date
    Nov 2002
    Location
    Big Apple (I Love NY)
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    1,108
    The company is Charge.com / Pipeline Data Processing to be precise...I have dealt with plenty of very helpful people at this company, but this one individual has really managed to turn me off to the entire company...

    ----

    Filling out an application over with LoudCommerce now...have read good things about them. Rather go with a company that has active representation here on WHT anyway.

    ----

    My next problem...the best way to go about acquiring the several K that we're owed in funds that have been on hold since 11/16. Do I leave the current merchant account open (continue to pay their monthly fee) and send this individual every possible document they can think of, so they can release the funds to us...? - Do I go into our two billing systems (modernbill/ubersmith) and hit refund on all the transactions and process them again 3 days later (?enough time for the funds to post to our clients cards...)

    Recommendations would be greatly appreciated...The second method is a major hassle, and highly unprofessional looking to our clients as well.

    ----

    Happy New Years! - Well...soon...
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  8. #8
    Join Date
    May 2003
    Posts
    267
    Steven,

    The worst case scenario you will get your funds back In 6 month. However, I guess it's a better way to keep sending them everything you can to resolve this situation and get your money faster.
    Anyway,
    1) if you close account they still must return your funds in 6 month. Check with your merchant agreement.
    2) be very careful the refunds. Sometimes processing systems are setup the way that refunds are charged FROM YOUR BANK account, not from funds that are on hold with the processor. As a result you may pay everything from your pocket and still have all funds on hold. Test it first on one small order to see how it works. However, I would not recommend doing so anyway. Too risky.
    Good luck.
    Amirocms.com

  9. #9
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
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    You should still be able to close the merchant account. If you need to refund an individual - you can usually do it two ways. One would be to contact the old processor and ask them to allow you do to a refund.

    Another would be to contact the new processor and tell them you need to do a refund to someone who is not on record. Basically they will enable a switch and will allow you to do a return to someone via the virtual terminal. You will need the credit card number of course. For example, if John Doe wants his money back, you can go to the virtual terminal enter his credit card number and basically put ever how much money you want onto his credit card. The reason that most processors want you to call is because this is a very powerful feature. You could literally just put thousands of dollars into someone credit card 'balance'.

  10. #10
    Join Date
    Nov 2002
    Location
    Big Apple (I Love NY)
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    1,108
    The only issue we have with the second option, is it is money we have never received. What do you think?

    ---

    The most important thing right now is for us to stop processing our daily CC transactions with them ASAP, which should be resolved shortly. Our next concern is getting our funds for the several valid transactions that they are holding onto.
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  11. #11
    Join Date
    Nov 2002
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    Big Apple (I Love NY)
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    BTW: Quick side note Corey. Is this available with Auth.net?
    http://www.loudcommerce.com/quick-approval.asp
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  12. #12
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
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    To answer your question - or rather give a vague answer - yes and no. The Bookeeper program is still free but it is not compatible with the Authorizenet.com gateway. Currently the quick approval only has LinkPoint attached (we have not created one for Authorizenet.com). But completing the other application on our site - you would still be approved pretty fast. (It's just that main link goes right over to the processor and the other one, we enter and then send to you to electronically sign.)

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