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2Checkout and Chargebacks
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2Checkout and Chargebacks

CoreyCorey Member, Provider
edited June 2014 in Providers

So I had the following situation with 2Checkout on a chargeback, are they full of it?

How did I get charged back when I was never contacted?

Me:
How did AMEX do a chargeback when the cardholder NEVER contacted our support for a refund? We would have gladly given a refund. I thought this was the chargeback process, was to first contact the seller? This is unacceptable.
Also Sale # 4977115740 charged me back without contacting? Another american express, what is this??? We do not want to accept American Express. If we have no choice but to accept american express we will find a different payment gateway.

2Checkout:
Hello,

Thanks for contacting 2Checkout.com's Chargeback Department and Collections Department. I would be more than happy to assist you with your issue today.Unfortunately there is no way to stop chargebacks. This is part of the risk when selling over the internet. The only thing we can do is to work together to try to minimize these risks as much as possible.

A chargeback is a forced refund from the credit card company .Unfortunately, the credit card companies do not require that the cardholders contact the merchant before issuing a chargeback. Also it is not a requirement of the credit card companies to contact a merchant before issuing a chargeback. This is not just with American Express, it is will all credit card associations.
Additionally, there is no real time frame a cardholder has to dispute a transaction. It is up to the credit card company if a chargeback will be or will not be allowed. The credit card companies give the cardholder this option as a way to protect themselves. Majority of the credit card companies will allow a merchant to challenge a chargeback as a way to protect themselves. However, they do charge the merchant a fee (15.00) and only give merchants a limited amount of time to challenge the chargeback (7 days). This is why it is best to keep any and all documentation, emails, or support tickets a customer may have sent. This will help with trying to challenge a dispute. You can also try to send the customer an email stating the customer's name, amount, and the product that was ordered, and that they have received and was happy with the product. Have the customer sign and fax it in or reply to the email with a signature (thanks customer name). This could also help challenge almost any chargeback that is received. Even with this there is no 100% guarantee that you would win, as all challenges are reviewed by the issuing bank.

Unfortunately, since this order was paid for by using an American Express credit card. We only have two options. One is to let the dispute stand. The other is to contact the customer to see why it was disputed and ask that it be reversed (it may have been done in error). The reason for this is that American Express will not allow us to challenge their chargebacks due to the type of business we are (on-line only/only process a payment).

Since we do have a contract with American Express, we are unable to take American Express off of the payment page. However, every seller has the right to cancel any order at any time for any reason.

I'm sorry for any inconvenience this issue may have caused you. If you need any additional assistance, please feel free to reopen this ticket or call one of the following phone numbers listed below or click on one of the web links below. to reopen this ticket or call one of the following phone numbers listed below or click on one of the web links below.

Thank you and have a nice day,

Me:
http://www.americanexpress.com/au/content/merchant/pdf/disputes-process/Leave Behind_American Express Dispute Process_AU.pdf

It says right here that they send over a 'Request for information' via letter. If they are sending over a request for information why was I not contacted for additional information? During this 'request for information' period we can just refund the customer instead of a chargeback happening. A $20 chargeback fee sure does hurt on a $9 sale!

On the third step - 20 days later.....

American Express will review the case to ensure the
Chargeback meets the requirements and no credit against
the disputed charge has been applied by the Merchant in
the interim.

So again, why was I not notified so that I can refund the sale?

2Checkout:

Hello,

Thanks for contacting 2Checkout.com's Chargeback Department and Collections Department. I would be more than happy to assist you with your issue today. If the cardholder request for them to send an inquiry notice they will. If the cardholder just wanted to dispute the transaction, then they will just send over a chargeback notification. Each credit card company has the same policies. They do not have to send an inquiry notice before they issue a chargeback. It is up to what the cardholder wants to do.

I'm sorry for any inconvenience this issue may have caused you. If you need any additional assistance, please feel free to reopen this ticket or call one of the following phone numbers listed below or click on one of the web links below. to reopen this ticket or call one of the following phone numbers listed below or click on one of the web links below.

Thank you and have a nice day,

Thanked by 1key900
BitAccel - OpenVZ VPS / IRC,VPN,Anything Legal & Unrivaled Support!

Comments

  • How they can notify you before the customer charged back?

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  • CoreyCorey Member, Provider

    serverian said: How they can notify you before the customer charged back?

    They send a request for information - from what the link says, they do not move forward with actually 'charging back' until they hear from the merchant.

    BitAccel - OpenVZ VPS / IRC,VPN,Anything Legal & Unrivaled Support!
  • tragictragic Member

    I've been in similar issues lately with Stripe, sucks. It's honestly up to the customer if they want the bank to contact you. Sometimes they don't care and push the bank to do a chargeback because they want their money back asap.

    hello world

  • @Corey said:

    I doubt American Express actually sends any letter. Paypal works the same way as well and all the other merchants I've used over the years. American Express people make it so easy to chargeback. They don't even question their customer. It takes like 10 minutes on the phone and boom, you are in for a $20 + sale price.

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  • CoreyCorey Member, Provider
    edited June 2014

    tragic said: I've been in similar issues lately with Stripe, sucks. It's honestly up to the customer if they want the bank to contact you. Sometimes they don't care and push the bank to do a chargeback because they want their money back asap.

    All the banks around here won't move forward with a chargeback unless certain conditions are met. They even told my brother that he couldn't charge back a company because their ToS said 'no refunds' - LOL.

    serverian said I doubt American Express actually sends any letter. Paypal works the same way as well and all the other merchants I've used over the years. American Express people make it so easy to chargeback. They don't even question their customer. It takes like 10 minutes on the phone and boom, you are in for a $20 + sale price.

    Yea I wonder what 2checkout's contract with Amex is, (as long as you process these chargebacks with no hassle you can offer amex and will still make money from the chargeback process since like only 1% of customers are legitimate and accounts aren't hacked)

    Every Amex sale I get, is charged back... it's ridiculous... and I don't police my 2checkout account to see what payment method they used.

    BitAccel - OpenVZ VPS / IRC,VPN,Anything Legal & Unrivaled Support!
  • tragictragic Member

    @Corey said:
    All the banks around here won't move forward with a chargeback unless certain conditions are met. They even told my brother that he couldn't charge back a company because their ToS said 'no refunds' - LOL.

    I wish all the banks worked like that. I'm pretty sure the big ones (Chase, AMEX, etc), could careless as long as they keep the customer "happy".

    I've had a couple small banks give me a call and tell me how much better it is than chargeback.

    hello world

  • And this is why i still use paypal even though there not full proof either.

  • CoreyCorey Member, Provider

    sz1hosting said: And this is why i still use paypal even though there not full proof either.

    I use paypal as well as 2checkout :)

    Thanked by 1sz1hosting
    BitAccel - OpenVZ VPS / IRC,VPN,Anything Legal & Unrivaled Support!
  • wychwych Member

    @sz1hosting said:
    And this is why i still use paypal even though there not full proof either.

    PayPal is far from ideal.

    Taking a hiatus.

  • wych said: PayPal is far from ideal.

    I know i agree : (

  • Maybe Carding.

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  • looks like carding to me

    I am not Rick

  • J1021J1021 Member

    Is this not fraud?

  • CoreyCorey Member, Provider

    1e10 said: Is this not fraud?

    What is fraud?

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  • J1021J1021 Member

    @1e10 said:
    Is this not fraud?

    Customer purchasing a service, using said service and then charging back?

  • CoreyCorey Member, Provider

    1e10 said: Customer purchasing a service, using said service and then charging back?

    Yea that would be fraud, which is why I wonder why I never received a request for information.

    BitAccel - OpenVZ VPS / IRC,VPN,Anything Legal & Unrivaled Support!
  • J1021J1021 Member

    So will you now be looking to take action against the client that has charged back?

  • CoreyCorey Member, Provider

    1e10 said: So will you now be looking to take action against the client that has charged back?

    From what 2checkout says I can't take any action, right?

    BitAccel - OpenVZ VPS / IRC,VPN,Anything Legal & Unrivaled Support!
  • J1021J1021 Member

    @Corey said:

    You can take action via legal avenues.

  • CoreyCorey Member, Provider

    1e10 said: You can take action via legal avenues.

    I don't really want to spend any money pursuing this $9 transaction. I just think it's bullshiz that Amex can charge back without doing a request for information.

    BitAccel - OpenVZ VPS / IRC,VPN,Anything Legal & Unrivaled Support!
  • Have you went the route of challenging the chargeback yet?

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  • CoreyCorey Member, Provider

    OnraHost said: Have you went the route of challenging the chargeback yet?

    The 2checkout person already said Amex will not allow them to challenge it.

    BitAccel - OpenVZ VPS / IRC,VPN,Anything Legal & Unrivaled Support!
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