A post that I am sure you guys are well aware of, authored by themp4guy (http://www.2checkout.com/community/support/topic.php?id=387&replies=35), raised a great question I would like to receive 2CO official’s comments on. I became very alarmed by the content of this post, as I didn’t see (or overlooked) 2CO’s comments about 2CO refunding the cost of transaction if it’s fraudulent or refunded.

Here’s the question:

Is it correct that 2CO retains the 5.5% fees for each transaction regardless of the fact that transaction was either ok or refunded by 2CO or vendor for reasons such as fraud?

Here’s an example:

I get a 2CO order from a person in the US with an IP address of the origin of the transaction in, say, Yemen. I clearly see it’s a fake order. Say, the order is for $100. I hit the Cancel Sale button, choose Fraud as the reason for cancellation. The money then goes back to the card account, but does the $5.50 go back to me or do you guys keep $5.50 anyway????

Look forward to your specific comments on this situation.

Here’s another example:

I get a 2CO order from a person in the US with an IP address of the origin of the transaction in, say, PA, USA. The order looks perfectly legit and 2CO Fraud approves this transaction. Say, the order is for $100. The customer is sent download instructions for the e-good purchased by this order, so the delivery is effected.

Two months after the transaction, I get a note from 2CO that this is fraud and I should contact the vendor or refund the sale.

I hit the Cancel Sale button, choose Fraud as the reason for cancellation. The money then goes back to the card account, but does the $5.50 go back to me or do you guys keep $5.50 anyway????

Look forward to your specific comments on this situation as well.

We have fallen victim of real fraud on a few occasions, and are bothered by unsubstantiated transactions that 2CO fraud review hastily approves and that we reverse. Does that mean that we’re losing money every time this occurs???

Very curious to find out about your position on that. I would appreciate a link to a relevant quote in your documentation, if any, because the RTFM rule still rules:). Thank you!