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2Checkout $5 chargeback.... REALLY!?
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2Checkout $5 chargeback.... REALLY!?

CoreyCorey Member
edited May 2013 in General

2CO has been notified by the customer’s card issuer
that a chargeback has been issued for Sale #XXXXXXXXX8.

We have updated the Sale in our system to reflect the dollar amount
pulled back by the card issuer. These funds will be recovered from
your account and will appear as refunds in your payment details.

You have also been assessed a chargeback fee of 20.00 (USD)
in accordance with our fee schedule.

Reason code entered by issuer of this chargeback,
and additional details regarding this chargeback, are as follows:
WW94720
********CHARGEBACK DO NOT ATTEMPT TO REFUND THIS ORDER*******
AMERICAN EXPRESS: Chargeback reason fraud. Please contact your buyer if you feel this charge back was in error and resolve this matter with them. Once you have resolved this dispute with your buyer, have the card holder contact their credit card company and let them know that they are no longer disputing the charge. If you have any questions please contact us at [email protected].

If you have any questions or if you would like to challenge this chargeback,
please contact us at [email protected]. Please keep in mind that not all
chargebacks can be challenged. If this chargeback allows for a challenge
and you chose to do so, you only have 7 days to challenge and you will be
assessed an additional fee for challenging a chargeback, regardless of the
success in overturning it.

This was a $5 transaction. I got charged $20 for it, and on top of that I can't dispute it unless I want to pay more money. This makes me want to drop 2Checkout altogether. Especially since they are supposed to be screening for fraud to begin with and then I get a chargeback on a $5 transaction.

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Comments

  • Doesn't Paypal and the other ones do the same thing? Quite normal I'd say from what I've seen around.

    It should be budgeted and be part of the business plan in terms of what you are offering.

  • rds100rds100 Member
    edited May 2013

    Yes, life is unfair. While you are at it, consider dropping all credit card funded payment methods.

  • miTgiBmiTgiB Member

    @Corey said: This makes me want to drop 2Checkout altogether.

    Best decision you could make, their rates are too high, if you can get a paypal account, you have no reason to use 2co

  • jarjar Patron Provider, Top Host, Veteran
    edited May 2013

    @Corey said: AMERICAN EXPRESS: Chargeback reason fraud

    Credit card company, so 2checkout's hands are tied on it. These kind of disputes cost them money as well. If it was a stolen credit card then it's a lot easier to do chargebacks than to seek out the merchants used. Sucks, but you just have to hope these people get weeded out beforehand with good fraud checks.

  • CoreyCorey Member
    edited May 2013

    @concerto49 said: Doesn't Paypal and the other ones do the same thing? Quite normal I'd say from what I've seen around.

    It should be budgeted and be part of the business plan in terms of what you are offering.

    Nope paypal doesn't do this.

    @rds100 said: Yes, life is unfair. While you are at it, consider dropping all credit card funded payment methods.

    I know of some other payment processors that don't do this.

    @miTgiB said: Best decision you could make, their rates are too high, if you can get a paypal account, you have no reason to use 2co

    I thought I would use it to attract more overseas customers that can't pay with paypal.

    On top of that - I was like one sale away from their $300 release mark until I got a chargeback.

  • JacobJacob Member

    2CheckOut just refunds random transactions, that they pose as "potentially fraudulent" even though the customer has been with us XX months, stupid stuff like that.

    We haven't had a chargeback in 12 Months plus, but isn't the chargeback fee normally $15?

  • @Corey said: Nope paypal doesn't do this.

    If it's a credit card reversal they will.

  • RobertClarkeRobertClarke Member, Host Rep

    @jarland said: hope these people get weeded out beforehand with good fraud checks.

  • @Corey, Paypal has a $10 chargeback fee, allows you to dispute the chargeback if you can provide evidence that looks like you might win at no cost to you; e.g., you shipped physical goods to the billing address. Sometimes they will refuse to represent you, intangible goods, service, etc.

    Most large CC processors have the same fee system. I am charged $10 by Nova, the Costco processor, and they have the same rules, they will only dispute it if in their judgement they think you have a case. But they don't charge.

    I found it very easy to get approved by Nova, but most of my charges are for physical goods, and I have some time in with First Data before I switched to Nova.

    As a general rule, I would not accept Amex from anyone you don't know. Most - a lot - merchants who have Amex accounts are on "full recourse", which means all chargebacks are automatically debited from your account with no inquiry by Amex, and they won't do anything to help you. I don't accept it, but of course I use my Amex card to pay for anything whenever I can.

  • @2Checkout

    I was considering you because of fraud screening, but this makes me laugh and seems like you don't take this serious, furthermore your rates are a complete ripoff

  • miTgiBmiTgiB Member

    @Corey said: I thought I would use it to attract more overseas customers that can't pay with paypal.

    Get Payza then, they work in most areas PayPal doesn't like Pakistan, India and China, at least it has worked well for me, and I've had less that 0.01% problems with it over the past 5-6 years of use, much lower than PayPal, but if the client uses a stolen card, not much you can do, it's just a cost of doing business online, and that $20 fee is double the industry standard, so I stick by my recommendation, dump 2co, they provide nothing you can't do on your own, and PayPal, Google Checkout, Amazon Simple Pay and Payza all assess a $10 charge-back fee, why pay 2co double?

  • ryanarpryanarp Member, Patron Provider

    @concerto49 said: If it's a credit card reversal they will.

    So far I have had 2 credit card reversals, and I provided as much proof and evidence as possible. They said they would fight my case with the credit card company, but apparently they lost and I was still smacked with a $20 chargeback fee.

  • @miTgiB said: why pay 2co double?

    Probably for income, because they only make profit on credit card payments and foreigners paying their ripoff fees

  • @ryanarp said: So far I have had 2 credit card reversals, and I provided as much proof and evidence as possible. They said they would fight my case with the credit card company, but apparently they lost and I was still smacked with a $20 chargeback fee.

    Similar experience. They can't do anything since it's virtual goods, not covered etc unfortunately. Not sure why the OP thinks Paypal or anyone is different.

  • RobertClarkeRobertClarke Member, Host Rep

    Paypal has been working out pretty well for us, just don't keep too much in it, and you'll be fine.

  • nutjobnutjob Member

    @MTUser2012 said: I don't accept it, but of course I use my Amex card to pay for anything whenever I can.

    Really? I only do that with groceries since they offer 3% cashback. With everything else there is better cashback. I don't care about anything but cashback and maybe extended warranty and the like.

  • @BronzeByte said: I was considering you because of fraud screening, but this makes me laugh and seems like you don't take this serious, furthermore your rates are a complete ripoff

    Do we PM in threads now?

  • @mpkossen said: Do we PM in threads now?

    That is towards @2Checkout, I could replace you with 2Checkout if you want ;-)

  • Yup i just got a fraud order 2 days ago from an order in iran.

    Paypal charged me $10 on top of the chargebacked amount.

    How unfair :\

  • What if you partially refund a PayPal payment that was CC funded? Can it still get chargebacked and get fees smacked on you?

  • 24khost24khost Member

    I just had 2 chargebacks last month through stripe. out a total of $60

  • miTgiBmiTgiB Member
    edited May 2013

    @Simple3x said: Yup i just got a fraud order 2 days ago from an order in iran.

    $10 is cheap compared to what the Treasury will charge you for doing business with Iran

    http://www.treasury.gov/resource-center/sanctions/Programs/pages/iran.aspx

  • DamianDamian Member

    Stripe charges $15, and they work to fight the dispute, and you can send in a response if you want. If you win the dispute, you get the $15 back.

    https://stripe.com/help/disputes

    I really have no idea why anyone would use 2checkout ever.

  • letboxletbox Member, Patron Provider

    Last month 7 chargebacks cost me $112.00 fee.

  • @miTgiB I actually didn't notice that I had an order from iran :(
    It was piled up when I posted my LEB offer so I didnt actually noticed that an order from Iran has been made. :\

  • t3stert3ster Member

    @Damian said: I really have no idea why anyone would use 2checkout ever.

    Stipe is only US.
    But yeah, 2Checkout is completely ripoff. Way too high fees. Better get paypal and google checkout/amazon payment with good fraud screening and you already covered 90% of customers needs.

  • BradNDBradND Member

    Had a client sign up with 3 different accounts and deposited $50 in each, then filed a CC charge. -150 + $60 in chargeback fees.

    Dropping 2co shortly. There fraud protection doesn't even work! It passes the sites IP over instead of the customers.

  • PayPal is $10 if I'm right, but still, it's daft fees :/

  • mpkossenmpkossen Member
    edited May 2013

    @BradND said: Had a client sign up with 3 different accounts and deposited $50 in each, then filed a CC charge. -150 + $60 in chargeback fees.

    How on earth can people file these charge-backs so easily? If I call my bank about a charge-back I need to give them a reason for it. I hope they would check the other side of the story as well. I mean, isn't that kind of their job?

    Also, dropping my 2Co application right now. Doesn't seem the trouble to offer it besides PayPal and Payza.

  • PatrickPatrick Member

    @t3ster said: Stipe is only US.

    No.

    It's in Canada and now also UK

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