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!
1 Comment »
+0
-0
I can answer this from experience (from yesterday as a matter of fact). I had two customers purchase from me, one was by accident due to poor checkout page design where they did not know that the final ”charge” step had taken place and another was a program that the particular customer uses did not interface well with our service…at any rate, both were legit sales. They both opted for a refund. Being that it was within several hours of the sale happening and the sale was not sent for deposit I was able to fully refund the customer and I was able to recoup the fees charged by 2Checkout (5.5% and $0.45). If it had gotten to be more than 24 hours or so, I would have had to eat those fees because they were sent for deposit. Essentially, it looks like if you can get the refund in within 24-48 hours you will be spared the fees, I think to be safe you should do it within 24 hours. Both of these customers paid with Paypal if it makes a difference..which I don’t think it does.
As far as your first example goes, if you hit cancel, because of a foreign IP address, as long as you do it fairly recently, you should be spared from the fees. The fraud department will probably catch it before you do but either way you can see you make out in this situation.
The second one, well….you must chalk this up as a cost of doing business. Refunding the sale for any reason past the sent for deposit stage will result in you paying the 2CO fees.
If I am wrong someone please by all means correct me.