Results 1 to 38 of 38
  1. #1
    Join Date
    Sep 2002
    Location
    Washington DC
    Posts
    2,514

    Angry 2checkout funds taken??

    Ok... can someone inform me of my legal rights? Someone signed up for my business hoster plan ($130 a year). I waited 24 hours like 2checkout told me to make sure it wasnt frauded... Then I gave the service out. Then about 25 days after, the funds got taken away because they said it was fradulant.

    Anyone know what I can do? Legal options... etc?


    Aaron Laporte
    Last edited by Chicken; 09-09-2002 at 11:45 PM.

  2. #2
    Join Date
    May 2002
    Location
    Edmonton, Canada
    Posts
    978
    Unfortunately fraud sometimes can't be detected in 24hours. What you should have done was contact your client through available methods to ensure they are who they claimed to be. 2Checkout was notified of fraud and lost the money because they believed the transaction to be correct. By doing the same you also lost your money.

    If the con artist was dumb enough to provide actual contact information you could call the local police and explain the situation, at the very least they won't fake orders with anyone else. Other than that the cash is gone.

    Sincerely,

    -Matt

  3. #3
    Join Date
    May 2002
    Location
    Edmonton, Canada
    Posts
    978

  4. #4
    Join Date
    Sep 2002
    Location
    Washington DC
    Posts
    2,514
    actually to be honest the shells came AFTER all these orders... we wanted to make sure our feet were well planted before exploring elsewhere.... I am going to require a phone number and call the number before filling the order !!!!!!!!

  5. #5
    Join Date
    Jun 2002
    Location
    USA
    Posts
    101
    Good Idea alapo to verify the order by phone.

    We do the same. After getting hit once, we never want to go through it again. We had a guy sign up for two accounts then issued a charge back after 30 days. Our lawyer gave us the same advice, there is nothing we could do without a customer sig and an imprint of the card.

    When we call we ask for the three digit number on the back of the card, to verify that they actually have it in their possession.

    This has helped us avoid five fraud orders in the month of August.

  6. #6
    Join Date
    Sep 2002
    Location
    Washington DC
    Posts
    2,514
    How do you verify that the three digit number you are getting is correct?

    Aaron Laporte
    Last edited by Chicken; 09-09-2002 at 11:45 PM.

  7. #7
    Join Date
    Dec 2001
    Posts
    539
    Originally posted by alapo
    actually to be honest the shells came AFTER all these orders... we wanted to make sure our feet were well planted before exploring elsewhere.... I am going to require a phone number and call the number before filling the order !!!!!!!!
    The phone number of the customer is included with the transaction email you receive on order completion.

  8. #8
    Join Date
    Sep 2002
    Location
    Washington DC
    Posts
    2,514
    Hey tom you work for 2checkout? Recently ive gotten some pretty crappy customer support frm your people... i asked a simple question... and got an answer somewhere along the lines of... your question is stupid :-/

  9. #9
    Join Date
    Aug 2002
    Location
    Downers Grove, IL
    Posts
    304
    Originally posted by alapo
    How do you verify that the three digit number you are getting is correct?

    Aaron Laporte
    www.theboxnetwork.net
    on your order form, request the 3 digit number that they have on the back of their. when you call, ask them to give it to you. if they don't match, well... cancel the order.

  10. #10
    Join Date
    Sep 2002
    Location
    Washington DC
    Posts
    2,514
    if i asked where would they put it?

  11. #11
    Join Date
    Feb 2001
    Location
    West Michigan, USA
    Posts
    9,675
    Originally posted by alapo
    Hey tom you work for 2checkout? Recently ive gotten some pretty crappy customer support frm your people... i asked a simple question... and got an answer somewhere along the lines of... your question is stupid :-/
    Well, was it a stupid question?

    --Tina
    ||| 99.999% Uptime SLA!!!
    Plenty of space and bandwidth to fit your needs!
    www.AEIandYou.com - - (WP Friendly - Premium Reseller Hosting and Cheap Dedicated Servers)

  12. #12
    Join Date
    Feb 2002
    Location
    Amherst, NH
    Posts
    241
    Originally posted by AffordableHost


    Well, was it a stupid question?

    --Tina
    Tina - There are NO stupid questions... Remember?

    Boy, some of the support questions I get are WAY out there, but the last thing I would EVER do is let my client think he's ignorant.

    Always answer with a Smile... Or at least a laugh if your using email!!!

    Steve
    Steven Santinelli
    www.sms-hosting.com - Premium Web Hosting
    www.sms-telecom.com - Low cost long distance/800 Service!

  13. #13
    Join Date
    May 2002
    Location
    Modesto, CA
    Posts
    3,414
    Yea that was neccesary Tina... lol
    dotGig
    <:<: [Fruit eating linux administrator]

  14. #14
    Join Date
    Sep 2002
    Location
    Washington DC
    Posts
    2,514
    weeeeeeeeeeeeeee!!!!!! look at this everyone a letter from paypal!!!

    Dear Aaron Laporte,

    We have just been informed that you have received funds from
    an account with reports of fraudulent credit card use.

    Details of the transaction and this case are as follows:

    Transaction Date: 08/08/2002
    Transaction Amount: $130.00

    THIS WAS LIKE 31 DAYS AGO!!!! How the hell can they take away the money after like 31 days....

  15. #15
    Join Date
    Feb 2001
    Location
    West Michigan, USA
    Posts
    9,675
    Originally posted by alapo
    weeeeeeeeeeeeeee!!!!!! look at this everyone a letter from paypal!!!

    Dear Aaron Laporte,

    We have just been informed that you have received funds from
    an account with reports of fraudulent credit card use.

    Details of the transaction and this case are as follows:

    Transaction Date: 08/08/2002
    Transaction Amount: $130.00

    THIS WAS LIKE 31 DAYS AGO!!!! How the hell can they take away the money after like 31 days....

    Because credit card companies generally allow their customers to file chargebacks up to one year of the purchase or fraudulant order.

    Bottom line, its the merchant's responsibility to weed out bad orders. If it got through your checks and balances...then you pay the price, unfortunately.

    --Tina
    ||| 99.999% Uptime SLA!!!
    Plenty of space and bandwidth to fit your needs!
    www.AEIandYou.com - - (WP Friendly - Premium Reseller Hosting and Cheap Dedicated Servers)

  16. #16
    Join Date
    Sep 2002
    Location
    Washington DC
    Posts
    2,514
    how the hell am i supposed to do that... other than calling and getting the 3 digit number (which BTW isnt too hard to get)...... maybe i should start dealing with checks and CASH not stupid electronic money that goes POOF.... grrrr


    Aaron Laporte

  17. #17
    Join Date
    Nov 2001
    Location
    The South
    Posts
    5,403
    chargebacks and fraud just plain HURT especially when you're just starting out.

    I had my first fraudulent paypal the other day, funny thing is, it was his 7th payment to me! The first 6 were (I guess) OK but that last one got tagged somehow.

    Don't offer yearly payments, that's one way to at least lessen the sting.

    Oh here's one: customer signs up for a year (2 plans) and 5 months later (MONTHS) charges back the full amounts of both because he was "dissatisfied" with the service so why stick around for 5 freaking months then?
    Gary Harris - the artist formerly known as Dixiesys
    resident grumpy redneck

  18. #18
    Join Date
    Sep 2002
    Location
    Washington DC
    Posts
    2,514

    Unhappy

    this sucks we need a union or something lol


    but atleast with 5 months you have a case... u can appeal and say it was fine for 5 months.... but with me its ONE payment... grr

  19. #19
    Join Date
    May 2002
    Location
    Modesto, CA
    Posts
    3,414
    Originally posted by Dixiesys
    ...because he (BECAME) "dissatisfied" with the service so why stick around for 5 freaking months then?
    Because hosts go bad, and often. Even some of the better ones.
    dotGig
    <:<: [Fruit eating linux administrator]

  20. #20
    Join Date
    Sep 2002
    Location
    Washington DC
    Posts
    2,514
    today has to be the worst day in my life....

    Lose $130 in charge backs one month old
    Brand new ipaq (out of warrenty) comes... battery and stylus lock broken.. $180.
    Lose another $130 in charge backs over a month old.
    Have some kind of horrible stomach disease.


    Yay!

  21. #21
    Join Date
    Feb 2002
    Location
    Australia
    Posts
    24,009
    Originally posted by alapo
    today has to be the worst day in my life....

    Lose $130 in charge backs one month old
    Brand new ipaq (out of warrenty) comes... battery and stylus lock broken.. $180.
    Lose another $130 in charge backs over a month old.
    Have some kind of horrible stomach disease.


    Yay!
    Sometimes life sucks.

    Chin up. You need tough skin to survive in the hosting business.
    AussieHost.com Aussie Bob, host since 2001
    Host Multiple Domains on Fast Australian Servers!!

  22. #22
    Join Date
    Sep 2002
    Location
    Washington DC
    Posts
    2,514
    chin up.. fat wallet

    On a site note... is it normal for an ipaq to charge (amber light blinks on and off), but then the amber light suddenly stops? And it doesnt start blinkin again for like 5 min.. or if you unplug it.... also when i put the stylus back in (the stylus lock broke after 3 uses) it seems to stop charging.... i hope i can get my money back because this unit is soooooo defective....




    ::edited to add more smilies ::

  23. #23
    Join Date
    Apr 2001
    Posts
    2,588
    I'm very sorry to hear about your ipaq doing whatever it is its doing or not doing, but what does that have to do with the topic? Did 2checkout sell you this unit?

  24. #24
    Join Date
    Feb 2001
    Location
    West Michigan, USA
    Posts
    9,675
    Originally posted by alapo
    .... i hope i can get my money back because this unit is soooooo defective....

    You can always do a chargeback.

    --Tina
    ||| 99.999% Uptime SLA!!!
    Plenty of space and bandwidth to fit your needs!
    www.AEIandYou.com - - (WP Friendly - Premium Reseller Hosting and Cheap Dedicated Servers)

  25. #25
    Join Date
    Aug 2002
    Location
    Australia
    Posts
    771
    lol - true

  26. #26
    Join Date
    Sep 2002
    Location
    Washington DC
    Posts
    2,514
    Originally posted by Haze
    I'm very sorry to hear about your ipaq doing whatever it is its doing or not doing, but what does that have to do with the topic? Did 2checkout sell you this unit?

    heh.... always gotta be a hater... even if it wasnt is it the end of the world?



    I wonder if I can do a charge back... I mean I got the item...

  27. #27
    Join Date
    Nov 2001
    Location
    The South
    Posts
    5,403
    Originally posted by Samuel


    Because hosts go bad, and often. Even some of the better ones.

    He never even gave me the option of refunding him the unused portion of his hosting. No emails nothing, just got an email from 2checkout one morning about the chargebacks from him.

    And yeah I sure see a lot of complaining from the 3000 or so people I host sites for here in these forums.
    Gary Harris - the artist formerly known as Dixiesys
    resident grumpy redneck

  28. #28
    Join Date
    Sep 2002
    Location
    Washington DC
    Posts
    2,514
    us=sad

    Isnt there ANYTHING we can do to prevent chargebacks? Arent we covered by any laws?

  29. #29
    Join Date
    Dec 2001
    Posts
    539
    Originally posted by ImLagging


    on your order form, request the 3 digit number that they have on the back of their. when you call, ask them to give it to you. if they don't match, well... cancel the order.
    I hope you are not being serious here, for your sake.

    Recording a CVV2 number leaves you liable for (up to) a $10,000.00 fine and loss of all merchant services from either MasterCard or Visa.

  30. #30
    Join Date
    Sep 2002
    Location
    Washington DC
    Posts
    2,514
    Tom, do you have any ideas of what I can do to help prevent fraud, other than waiting like 1 year.... to see if a chargeback comes heh :-/

  31. #31
    Join Date
    Dec 2001
    Posts
    539
    Originally posted by alapo
    Tom, do you have any ideas of what I can do to help prevent fraud, other than waiting like 1 year.... to see if a chargeback comes heh :-/
    a signed fax from your customer including picture ID would be a smart step for intangible goods.

    shipping to the CC billing address, using a shipping method that requires a signature from the consumer is a smart step for tangible goods.

  32. #32
    Join Date
    Sep 2002
    Location
    Washington DC
    Posts
    2,514
    i think me needing people to fax me something.... would send away most of my customers....

  33. #33
    Alapo,

    No intent of disrespect but it's obvious you didn't prepare a business plan before starting your business. Unfortunately, chargebacks are an expense of doing business online when the card is not present and goods are intangible. What plans did you have in place before starting a business to prevent chargebacks? What about plans to dispute a chargeback and collect on chargebacks? You need to take some responsibility for your lack of preparedness.

  34. #34
    Join Date
    Sep 2002
    Location
    Washington DC
    Posts
    2,514
    Actually I had a pretty good business plan. I just wasnt 100% informed on how chargebacks worked. Guess I shoulda been... I figured 24 hours per order was enough. I didnt know that after the money cleared it could get taken away. I planned when my company would roll out ads, etc... Everything was sunny.... Too bad I didnt find this forum until AFTER this happened... looks like there are some very good tips here.

    Aaron

  35. #35
    Join Date
    Aug 2002
    Location
    Seattle
    Posts
    5,512
    We have had funds chargedback after 90 days, its a fact of life. However, if this was a legitimate order you may send that customer to collections if you're willing to hire a good collections agency (and have the capital to do so).

  36. #36
    Join Date
    Sep 2002
    Location
    Washington DC
    Posts
    2,514
    wow... 90 days... i better get some investors and not count on money from sales!

  37. #37
    Join Date
    Jun 2002
    Location
    USA
    Posts
    101
    I think you may be overreacting a bit. We have only had one chargeback in the last two years. Though we are not a huge company we try to make sure we know our customers and let them know if they have problems, they can always contact us and we will work to fix it.

    Just be careful and check up on who you are hosting, make sure your customers are happy. There are always the customers that will complain no matter how good you are, but this will help avoid the occasional chargbacks.

    I know a couple hundred dollars can be a huge blow to a new company, but consider it a lesson learned and move on. It won't do any good to worry about it.

  38. #38
    Join Date
    Sep 2002
    Location
    Washington DC
    Posts
    2,514
    true.. true... im not THAT mad... I mean.. ive had 5 or 6 other chargebacks that got caught in 24 hours... I am just mad that it took over a month (and my ipaq broke the same day ! ), when in my own little world I thought 24 hours was a magic fraud number.

    On a side note... Wow my first thread is pretty big

    Thanks for all the positive comments. I am going to reorganize and come up with a new.. hopefully successful plan.

    Aaron

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •