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  Post #1 (permalink)   07-31-2007, 12:14 AM
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Customer tried placing a $49,000 order with AMEX on Paypal but was having trouble so I redirected her to 2checkout which we use as a backup.
Since it was a large order we held back on shipping pending 2CO's fraud review.
Later that day it passed 2CO fraud review.

This was my indication that the order was good and so the following day I initiated the process of filling the order.

Three days later, after the order had been sent off to the customer, I called 2CO because I was concerned that the payment had't been processed. Larry assured me that although it hadn't made this week's payment cycle it would certainly be on the following week's. He further assured me that the payment was guaranteed as it had been approved by the bank.

An hour or so later I received notification via email that the order had been cancelled by 2CO and refunded to the customer.

As a consesquence of this action I am now left scrambling trying to recover the goods which will not only cost me to have returned, providing I am able to do this, but I am also out of pocket the potential profit from the sale.

2CO website states: "...accounts whose sales level drastically rises, will be subjected to our account verification process. This process is typically done through voice verification with the end user of the service or product.
While this process is usually seamless, difficulty in verifying the legitimacy and status of your account can result in the delay of your initial payments."

Notice that it says this can delay payments, not cancel orders.
Did 2CO, in fact, try to notify the end user to verify the order? If so, what was the result? No answer. If not, why not?

Why was I not notified immediately rather than several days later, after I had shipped the order? has been unable or unwilling to answer these questions.

In fact they sent an email stating "a number of factors were taken into account when we concluded that the risk was too great for us to allow the sale. Some of the factors that were taken into account : no address verification, no CVV verification (Amex), address given for the credit card was a P. O. Box,etc."

Understand I am not complaining about 2CO's refusal to accept the order. They certainly have the right to accept or refuse any orders they want. What I am PO'd about is the fact that they indicated that the order was accepted, which prompted me to commence shipping. Their policy even states that it is mandatory for their vendors to ship the product before receiving payment from 2CO. If they were concerned about the risk factors as mentioned in their email, then why did their fraud review team approve the order?

I have complained to the Better Business Bureau, which already has many, many complaints about this company and I am now urging everyone who is considering using 2CO to do so at their own risk. (BTW, they also charge an outrageous 5.5% of sales. About twice as much as Paypal.)

  Post #2 (permalink)   07-31-2007, 06:25 PM
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Ouch I really hope it works out for you I know I use to use 2checkout a long time ago but not for big amounts.
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  Post #3 (permalink)   07-31-2007, 07:10 PM
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If you have the potential to do a $49K transaction I fail to see the logic of doing it with 2co.
Why would you not insist on a cashier's check.
Or even open up a real merchant account. The 5% the 2co charges would pay a year's worth of fees on a merchant account.
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  Post #4 (permalink)   07-31-2007, 09:13 PM
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I used to use them back in the day... But I ran into some what similar issues and moved on. They were pretty good in the past, but these days their not a good billing process to use at all.

  Post #5 (permalink)   09-15-2007, 06:28 AM
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this is really a nightmare, did you ever got your goods back? or are you still waiting for a resolution?

  Post #6 (permalink)   09-15-2007, 07:50 AM
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I'm a bit confused as to why you would do a $49K transaction through 2checkout or even PayPal for that matter.

If someone was paying me that amount of money i would make sure it was done by bank transfer or as Blue said a cashier's check.
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  Post #7 (permalink)   09-16-2007, 03:27 AM
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I'm really sorry for issue but it was not a wise decision to do a $49K transaction with 2CO in the first place.

As far as I can remember you have to get their permission first before doing this type of transaction. It was mentioned on their TOS or FAQ but I cant remember exactly where. They would most probably cancel the transaction if you don't have the approval in the first place.
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  Post #8 (permalink)   10-05-2007, 06:45 AM
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Yea, not sure what type of business you're dealing with, assuming it's high risk business you should go for high risk merchant account from few providers like, chronopay, gspay, ccbill, netbilling etc rather than using their service.

  Post #9 (permalink)   10-10-2007, 06:51 AM
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It does sound like they could have handled the situation better, but honestly, that was a poor move.

There are ways to verify with them, wait long enough to make sure the goods get shipped, and then give 2CO reason to believe that fraud or a mistake was involved, in which case they'll just cancel the thing and refund back to the buyer.

You need something with insurance on it and designed for the large amounts you are dealing with.

Hope you get your goods back.
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  Post #10 (permalink)   12-27-2007, 04:13 AM
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49k through 2CO? Not a wise business decision. Take the time out fly to the customer and get a check in person, or even cash if it may be. 49k? The percentage going back to 2CO will be insane!

  Post #11 (permalink)   12-27-2007, 01:18 PM
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Wow that is bold move transferring 49k though 2checkout. I would never do more than a couple grand through them. I have been burnt by their fraud review system in the past, but I will say it seems they have gotten better.

The best way to have handled this kind of transaction should have been with a cashier check or possibly used Escrow. That way you payment is 100% safe.
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  Post #12 (permalink)   01-12-2008, 09:48 AM
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we have and use we personally dont like them that much either - we notice the same thing a lot of times.

we have a few customers who pay for servers with and the order sits ideal for liek 4 days and then shows up - but the problem is the system does not report back so you need to manually check -- so over all we dont recommend them for web hosting - good for invoicing web design one time items
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  Post #13 (permalink)   02-11-2008, 03:15 PM
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As far i as i knw you have to make special arrangements with 2co prior to deal with such HUGE sums of money, BUt then again they should have it ready made to accept any amount without any limitations
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  Post #14 (permalink)   02-15-2008, 04:56 AM
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sorry to hear mate :/ Though I have heard alot of good things about 2co
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  Post #15 (permalink)   02-15-2008, 12:51 PM
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BUt then again they should have it ready made to accept any amount without any limitations
I'm sorry Dev4vip but I have to disagree with you there - in a sense its better.

Firstly there is the security - If I was running a website like 2checkout, I would almost certainly want to be informed if a transaction on that scale was going to be place so that I could ensure that the security between the transaction was extra secure and went flawlessly.

Next there is the chargeback risk - The business would need to make sure that It had enough money in reserves to cover the risk of a chargeback on that account - could cost thousands.

Finally there is the fraud risk - 2checkout would need to perform quite a vigorous fraud check to ensure that it was not someone else's card was not being used. For a transaction on that scale you would want to put a few staff on standby before and after the transaction took place jsut to be extra sure.

I'm sure that any company which was dealing with a transaction on that scale would want to know about it.

In a sense it is also the OP's own fault because who in their right mind would do a transaction on that scale through a web merchant account. If it was to be done online, I would make sure it was being sent to me either via bank transfer or held in Escrow awaiting immediate transfer.

It could have also been done by a registered cheque - in this case I would only accept if it was sent by secure courier and with a cheque guarantee card. even then I would wait until the funds reached the bank and had been processed before shipping the goods.

The maximum transaction we will handle online is the sum of 1000 (approx $2000) even then rigorous fraud checking is carried out and we will inform our merchant provider prior to it being carried out - its just something you should do!
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Chief Operating Officer
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