Who is managing your online fraud protection? If you have an active 2Checkout account we’ve got your back. If you are unsure or on your own, you better read more!
According to an article published this week in The Paypers, the FBI’s Internet Crime Complaint Center (IC3) registered over 275,000 online fraud complaints in 2008…” That’s a 33 percent increase from 2007 and equal to approximately $265 million in annual losses.
World-class fraud protection is invaluable to an online business but not cheap. The labor and technical expenses associated with providing adequate protection require a significant resource commitment, especially for small businesses. However, for 2Checkout account holders, fraud protection is just one of a number of value-added features included in our turnkey e-commerce service. And sometimes it takes statistical reminders from the FBI to remind us how crucial these add-on services are to running a profitable online business.
Most veteran 2Checkout customers will agree that free, highly sophisticated fraud protection is by far the most valuable benefit 2CO offers its customers. As an integral part of our turnkey solution, 2Checkout manages fraud protection not only for the businesses utilizing our e-commerce solution, but also for the millions of anonymous and honest customers purchasing their products.
2Checkout attacks and manages online fraud issues with three separate, inter-related departments. Our Enterprise Services Group manages 2CO’s free, fully-hosted PCI-DSS Storage feature ensuring customer data is never breached. 2CO’s staff of Risk Specialists, serve as consumer advocates looking out for the interests of customers purchasing from 2Checkout vendors ensuring products are received. And, our Fraud Department works around the clock analyzing databases and networks and scrubbing data to continuously weave a stronger web and identify criminally minded customers before fraudulent transactions can even take place.
Whether you’re a 2Checkout vendor managing every dime that comes through your business or a consumer purchasing a product through 2CO, your protection from fraudulent behavior is a number one priority. Best of all… it’s free of charge!
8 Comments »
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Before I came to 2CO my previous payment solution provider “provided” me fraud/refunds rate like 25% (up to 50% in bad months). With 2CO it’s about zero – mostly just “technical refunds” for duplicated orders.
I just cannot get it – why 2CO post their own advertisement in their own blog? 2CO vendors already know 2CO’s protection is very good =)
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We track refunds initiated by vendors with “fraud” as the reason.
We’ve tracked a potential reason for this to an over-reliance on AVS/CVN reporting. Our fraud review process goes far, far beyond simple AVS/CVS values so these are lost sales — to both the vendor and 2CO.
I hope to have a more detailed blog article up soon explaining why second guessing our fraud recommendation isn’t advisable and can actually be quite costly.
Consider this less a 2CO “advertisement” than a content leader.
Thanks for the nice comment!
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When I just looked at my account section to see my e-check payments, sales, amounts released, amounts held and chargebacks I too though 2CO was great because I never had chargebacks.
But after some careful accounting of how much money was refunded by me and how much 2CO said I refunded I noticed account discrepancies in the thousands of dollars.
After digging further it turned out that 2CO was registering chargebacks to my account as refunds and not chargebacks. I was shocked, and actually I still am..
I am still waiting for confirmation and contact from them on this matter.
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When you are viewing the payments section of your account you will see the fee associated with the chargeback in the “Chrgbck” column. If you click on the total in this column you will see a detailed report of each sale that was assessed a fee due to a chargeback. On the payments screen the chargeback amount is removed from the payment as part of the refund column total.
If you wish to see what sales were refunded, and what sales had a chargeback, I recommend you download a CSV file of your sales and review this file in any spreadsheet program. This report will show you columns for a sale being refunded and show you a different column for a sale that experienced a chargeback which will allow you to differentiate between the two.
For instructions on how to download this report please review this article.
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I’ve been with 2CO for several years and with over 800 copies of my products sold I have had 0 chargebacks. That’s about 0,00% chargeback rate
I miss some features with 2CO (like the ability to automatically cancel subscriptions as I need to manually cancel each subscription for each closed account) but all in all I am very satisfied.
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You may want to consider using the Instant Notification Service(INS) in your account. By using INS, you would be able to receive electronic notifications when customers cancel their recurring services. INS will post sets of cgi parameters to any URL you specify and you would be able to set up a script that could manage customer accounts in your system.
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Thanks for the reply, but what I had in mind was the other way around actually. I know how INS works, it is great if a customer cancels the sale we can automatically close their account on our end.
The problem is when it’s done the other way around – when a customer closes an account with us we must either manually cancel the 2CO recurring sale or he must contact 2CO himself to do so. Many customers close their account but don’t cancel the 2CO recurring billing (although we have it written in bold red text on the page where they close their account) and contact us months later when they realize they are still being billed for the account they closed some time ago.
For this reason it would be great if there was a way to automatically cancel a recurring billing, for example by accessing an URL like this billing for sale number 123456 would be stopped:
https://www.2checkout.com/stop_billing?sale_id=123456&hash=abcdefghijklmnopqrstuvwxyz
The hash (or any other method) would be used to authenticate the request as legit.
I wish something like this would be added someday, it would be a big relief to vendors with a large number of subscriptions.
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I just wanted to thank you for the suggestion and let you know that it has been brought to our developers’ attention.