Hello All,
Not that this will severely affect our business, but I feel the poor treatment of a long term customer and inconvenience caused has warranted a publicly made, albeit (probably) largely ignored, report!
I work for a company called HostHongKong. As the name suggests, a hosting company based in Hong Kong. One of our payment methods accepted is of course, Credit Card, processed by 2CheckOut.
We have been a customer of 2CO for almost 8 years (since early 2006). Our 2CO transaction volume is relatively low compared to our other gateways as most of our clients will pay by Paypal or Bank Transfer instead. Still, the volume is not insignificant, and over the last few years, 2CO has charged us many thousands of dollars in fees!
On September 20th, we were informed our account was to be terminated, citing high risk due to large volumes of charge backs and we had until the 25th to find an alternative processing provider. To be fair to 2CO, they did not freeze/hold any of our funds and are paying out as normal (or so they say). But 5 days is hardly enough time to find another provider and the customers of ours who have grown accustom to using 2CO are now going to be inconvenienced!
As they cited our business was 'high risk', I decided to check up our transaction history, and found that there have been just 6 charge backs in the last (almost) 8 years, and just 1 charge back in the last 13 months. 2CO later informed me their threshold for charge backs is just 1%. So beware people! If you have 1 in 100 transactions that are charged back, you are likely to have your account terminated! I'm also not convinced that 6 transactions = >1% of all transactions we had on 2CO, but I have yet to find a tool in 2CO that allows you to count, or display the total number of transactions so it is difficult to verify.
In any case, given we paid 2CO 5.5% + $0.45 per transaction, on-top of charge back fees, and on top of the many genuine transactions 2CO would not authorize, it certainly doesn't feel you are getting great value for the service. Their fees are higher than all of the competitors I can think of and their fraud detection is not only poor, but costly for business.
Well, plenty of alternatives around, so will be adding other gateways. Any recommendations? Would love to know who's good and bad.
Not that this will severely affect our business, but I feel the poor treatment of a long term customer and inconvenience caused has warranted a publicly made, albeit (probably) largely ignored, report!
I work for a company called HostHongKong. As the name suggests, a hosting company based in Hong Kong. One of our payment methods accepted is of course, Credit Card, processed by 2CheckOut.
We have been a customer of 2CO for almost 8 years (since early 2006). Our 2CO transaction volume is relatively low compared to our other gateways as most of our clients will pay by Paypal or Bank Transfer instead. Still, the volume is not insignificant, and over the last few years, 2CO has charged us many thousands of dollars in fees!
On September 20th, we were informed our account was to be terminated, citing high risk due to large volumes of charge backs and we had until the 25th to find an alternative processing provider. To be fair to 2CO, they did not freeze/hold any of our funds and are paying out as normal (or so they say). But 5 days is hardly enough time to find another provider and the customers of ours who have grown accustom to using 2CO are now going to be inconvenienced!
As they cited our business was 'high risk', I decided to check up our transaction history, and found that there have been just 6 charge backs in the last (almost) 8 years, and just 1 charge back in the last 13 months. 2CO later informed me their threshold for charge backs is just 1%. So beware people! If you have 1 in 100 transactions that are charged back, you are likely to have your account terminated! I'm also not convinced that 6 transactions = >1% of all transactions we had on 2CO, but I have yet to find a tool in 2CO that allows you to count, or display the total number of transactions so it is difficult to verify.
In any case, given we paid 2CO 5.5% + $0.45 per transaction, on-top of charge back fees, and on top of the many genuine transactions 2CO would not authorize, it certainly doesn't feel you are getting great value for the service. Their fees are higher than all of the competitors I can think of and their fraud detection is not only poor, but costly for business.
Well, plenty of alternatives around, so will be adding other gateways. Any recommendations? Would love to know who's good and bad.