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2checkout chargebacks
Hello,
I'm not entirely sure about how it works so im just going to ask it.
How does it work when a customer tries to chargeback a payment handled by 2checkout?
is it the same way of handling chargebacks as it is with paypal or is it different?
My reason for asking this is because i had recently someone trying to chargeback a network service related thing using paypal directly, the guy did won the dispute which was not legit at all.. i wanna prevent that people screw me over when they make a payment, what is the best way?
Thank you.
Comments
2checkout is worse than paypal in chargeback handling. Own experience.
Just make better reports to paypal when they dispute. Something like this:
"At (time) on (date) the IP (ip) placed an order for (product) using (contact information). This service was delivered on (date) at (time) and utilized by the same user at (ip) on (date) as indicated by the server log entries below."
Yes thats a good way to handle it but it does not guarantee a seller that he'll be fine.
Is there a payment gateway that by default favors the seller? i'm kinda looking for something like this because i dont feel like dealing with disputes at all because it is a waste of time.
Prevention is better than cure. Detect fraud better. Why are people charging back? Sometimes its cost of doing business like theft in retail.
I agree, but there are always people who will try to get advantage of you, i wanna have that dealt with automatically by the payment processor.
We've gotten approached by a 2CO rep about wanting us to do business with them. I've always ignored it because of stories I've heard of the horrible treatment hosting companies have gotten from them
No. Don't use them. I had terribke experience with them. If you are interested, shoot me a PM I'll explain in details what happened to a 2 year old customer.
PM'd.
Authorize.net is no better, just saying... (own experience, sadly.)
Use Skrill, no chargebacks
Most of the time payment processor is hands and tongue tied when it comes to chargebacks. Visa/mastercard chargebacks are designed to protect the consumer and sometimes a consumer will easily abuse them but that person cannot make a habit of doing it. The same goes for merchants with high chargeback rates.
Banks get involved when chargebacks are filed and frankly a payment processor is powerless in most cases since it only acts as the messenger between dispute settling authorities but yes a powerful institution like paypal is more likely to have your back (provided you are an old big volume seller) than a smaller institution like 2co which has lesser bank connections and would not like to loose its merchant account.
The only way to avoid chargebacks is by using real money transfer (which too has laws that allow reversals).
Or use a merchant such as OKPay; USafeCard, etc, which does not allow chargebacks.
There are many payment ways that can avoid chargebacks by design. Bitcoin is one of them, but there are many other businesses which have such a model. You will lose the customers which wish to chargeback, as well as the corporate "serious" ones.
The problem with chargebacks is that banks vary wildly on their policy regarding them. Most legitimate banks will ask the buyer to try and resolve the problem with the seller and will then seek proof of the claim, while other banks will file chargebacks based on a one minute telephone call without proof or a glance at that client's previous chargeback history.
That's the same everywhere with credit cards, you might just need to call a few times until you get a phone operator who is too lazy to check everything and simply issues the chargeback.
they charge €19.95 per month + Chargeback protection 7.9%
2checkout is not good for hosting companies... chargeback will kill you
I will try Skrill
OKPay appears to be alot like Liberty Reserve?
could people pay using paypal if i provide OKPay as billing option?
no
I would prefer paying that over chargebacks.But for US merchants, there is no 19.95 € gateway fee I think.
I don't mind to pay up to 10% per transaction for guaranteed payment, but not on the top of 19.95€ for nothing special or extra, like PayPal Pro or any other payment gateway.
Maybe someone can sell a chargeback insurance which will work out the same way.
it would be great if there was a service like Liberty Reserve that accepts payments from paypal
this would guarantee the seller that he's safe and doesn't need to waste time dealing with false chargebacks all the time.
Wasn't it with 2Checkout that they could accept PayPal, and pay you into your bank on your behalf? Or was that Authorize.net I was thinking of...
Either way, most payment processors don't have any means to indemnify you from chargebacks, unless they want to shoulder all the loss of profits on themselves only. Even if you only allow certain businesses into you, you're still going to have abusive people that have banks that simply chargeback any payment, then don't even listen to the advise/evidence of the other hand.
Had a mate shipping car parts (dropship) out of Canada on a website. He was recently scammed huge by some odd UK bank through Visa, who would not listen to any evidence (or even return the calls from his merchant provider) with shipment tracking numbers, proof of order, proof of delivery (SIGNED) etc....
And yet there's no way to report the bank/Visa . Good luck doing anything to Visa, as far too many people (including the economy itself) depends on it.
I have to be creative and figure out a way to make the funds untouchable after the customer paid i guess.
I've already thought out a way, but it's arduous and just about nobody from LE* would bother with it (none of the scammers, and very few of the already few legitimate 'customers' here.)
Customer purchases a voucher, which is SHIPPED (mailed, with tracking+POD) to them (priority (sameday/nextday) cost for a letter isn't all that bad w/ POD). That voucher code is then used on the site to claim your service.
This would (in theory) put you at the 100% "did everything correct as possible" with PayPal. However, as explained in a recent rant/post of mine (3 posts ago) even a shipped item with tracking and proof of delivery can be charged back and leave you with a negative balance.