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Please protect your legit vendors !

Dear 2Co

I have been a vendor of yours for years, but am very worry at this time.
Please take the necessary steps of protecting your legit vendors, by cleaning up the medison mess.
Dealing as a vendor with 2CO for years, I 100% believe Medison buyers money is 100% safe with you, but I also believe you can still be held responsible for your deceptive actions (and I also must say your lack of reaction) in this matter.
And that therefore you can be subject to countless lawsuits, that in the end will hurt us, your vendors and money bringers, by pushing up fees higher. In a worse case scenario you could also be strip of your merchant account by Visa and Mastercard for your high chargebacks and refunds ratio.
It happened to others payment processing companies before (I’m sure you remember Paysystems. Thousands of vendors were left out of their holdback funds, worse millions bucks).
With the Christmas shopping season coming very soon, it’s time to clean your house, to protect your future and ours !

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19 Comments »

# Comment by lukeduke
2007-09-08 14:53:56

Valid fears here. I can tell right now that I will never buy product from 2co ever again after this mess. I would not want to be a a 2co vender after this.

 
 
# Comment by cliff 2CO Staff
2007-09-10 18:27:51

fabsand,

Thank you for sharing your concerns with us and thank you for your continued business.

The customers’ money is 100% safe, as you say. There’s simply no risk to the consumer.

I appreciate your concern for 2CO, but there’s practically no risk of a ”high chargebacks and refunds ratio”. To request a chargeback, funds must have been withdrawn from the customer. To request a refund, funds must have been withdrawn from the customer. If no funds have been withdrawn, a cancellation may, of course, be requested.

There are potentially serious ramifications to the accusation that 2CO has engaged in ”deceptive actions”. We’re happy to answer legitimate questions, but broad accusations of this nature are usually best ignored.

When customers have contacted 2CO, they have received replies. This is a public discussion forum. As such, not everyone participating is a 2CO supplier, representative or customer. Questions and claims made in these public threads may not receive a direct response from 2CO, especially if a response was previously given or would violate our terms of service. We believe in acting in as transparent a manner as possible and value the participation of our online community in the forums and the blog, but choose to err on the side of caution when it comes to protecting our customers and suppliers.

The only answer that really matters, regarding recent threads about the Medison Celebrity remains:
Customers, if they do not receive a laptop, may request a refund or cancellation.

By the way, I cannot comment on Paysystems, but I’m obliged to clarify something here: 2CO is not a payment processor. 2CO is a reseller or authorized retailer.

 
 
# Comment by lukeduke
2007-09-10 18:59:08

Cliff
”There are potentially serious ramifications to the accusation that 2CO has engaged in ”deceptive actions”. We’re happy to answer legitimate questions, but broad accusations of this nature are usually best ignored.”

Your forums are full of legitimate questions that have gone unanswered.

Cliff
”Questions and claims made in these public threads may not receive a direct response from 2CO, especially if a response was previously given or would violate our terms of service.”

What about when the previously given response is complete nonsense or had nothing to do with the topic at all?

Cliff
”The only answer that really matters, regarding recent threads about the Medison Celebrity remains:
Customers, if they do not receive a laptop, may request a refund or cancellation.”

That may be true in your eyes Cliff. It is obvious to anyone who reads these forums that is not the case in the eyes of your customers. Basicly you saying that our needs and concerns do not matter to you as long as you feel you are doing your job. That is no way to do buisness and is exactly why I will steer clear from any purchase that involves 2Co in the future. I seriously doubt that I am alone there.

 
 
# Comment by cliff 2CO Staff
2007-09-11 00:03:49

lukeduke,

If you are a customer and you have a question regarding your order, please contact us directly (see the ”Help” tab at the top of the page for contact information). Some questions that cannot be answered on this public forum may be able to be answered via support ticket.

Customers will either receive the product they ordered or they will receive a refund… if funds were withdrawn. What customer needs are not being met when there is no risk, to the customer, involved?

 
 
# Comment by fabsand
2007-09-11 00:26:07

”By the way, I cannot comment on Paysystems, but I’m obliged to clarify something here: 2CO is not a payment processor. 2CO is a reseller or authorized retailer.”
–>It’s totaly irrelevant to my point. It’s still YOUR merchant account.

”To request a chargeback, funds must have been withdrawn from the customer. To request a refund, funds must have been withdrawn from the customer.”

–>It’s my understanding that funds have been withdrawn from (some) customers cards in this case. So even if this funds have not been forwarded to the vendor yet pending your verifications, you are still at risk of chargeback and refund requests if the vendor doesn’t deliver (at seems to be the case).

Also you should realize that all publicity is not always good publicity. You may think that buyers will remember that you protected there money. They will rather remember that you allowed a scam (if in the end it’s a scam) schem for months despite the community many warnings.
So in the end il will still hurt your legit vendors because of the potential buyers running away away from 2CO vendors.

 
 
# Comment by lukeduke
2007-09-11 13:40:23

”Also you should realize that all publicity is not always good publicity. You may think that buyers will remember that you protected there money. They will rather remember that you allowed a scam (if in the end it’s a scam) schem for months despite the community many warnings.
So in the end il will still hurt your legit vendors because of the potential buyers running away away from 2CO vendors.”

Its not just a question of if we get laptops or not. Its also the question of service we recive while waiting. We are esentialy buying laptops from 2Co. If that is the case there are many questions that people have asked that should be publicly answered by 2Co. I think it is the obvious disreguard for customers needs and lack of knowledge on 2Co’s end that makes them look the worst.

 
 
# Comment by cibercore
2007-09-11 20:33:50

It seems that 2CO has turned into a big joke over the whole Medison affair, I also will never buy any product that uses 2CO after this mess!

 
 
# Comment by rspx
2007-09-12 13:24:19

I agree. I’m a programmer setting up an e-commerce site for a University Alumni association, but after all this, I really think I’ll be using Paypal.

 
 
# Comment by cliff 2CO Staff
2007-09-14 19:12:21

thenisse,

I have deleted your post.

Providing URLs to your site is fine.
Short quotes are fine.

Lengthy quotes are better replaced with a single link.

At this point, I think everyone’s aware of your site, but if you’d like to provide some specific links, you’re free to do so.

Thank you.

 
 
# Comment by kristin 2CO Staff
2007-09-14 20:00:26

All,

I’m not certain, at this point, exactly what it is that you want or need in order to feel as if this situation is resolved.

If you are/were a potential customer of the laptap you primarily needed to be concerned about the security of your funds and any additional protections that may have been in place via 2Checkout.com.

Quite honestly, we’ve invested a significant amount of time and effort in both meeting with our vendor as well as following up with Medison in order to formulate the opinions and tolerances we have throughout this process. Unfortunately, complications arose but it is the opinion of 2CO’s CEO that Medison is a legitimate enterprise that was unable to meet projections.

Additionally, some of the actions taken while attempting to either prove or disprove the legitimacy of this product offering were reprehensible. Attempting to force 2Checkout to violate our contracted policy is also going above and beyond.

Some people have invested their own significant amounts of time and effort to creating a genuine fervor about this topic. The reasons behind that are open to speculation.

The basic facts are that 2Checkout has been fortunate to be involved and takes its responsibility to protect BOTH our customers and our vendors seriously. At no point in the process were any funds at risk and not a single penny has been sent to Medison as a result of any sales or actions taken. Our role continues well past the point where a customer has been charged until customer satisfaction has been verified after receipt.

You may feel you are entitled to the contents of conversations with Medison but that is simply not the case. Should Medison authorize 2Checkout to release the contents of business communications than we will be certain to do so.

 
 
# Comment by thenisse
2007-09-14 21:43:01

Thank you for proving that you don’t read and/or don’t understand your potential customers and suppliers concerns. The reason for thousands of people are asking questions about your actions in this matter are because of really bad communication from your and Medisons side. You completely fail to answer legitimate questions that should be easy to answer without any strings attached at all. You have earlier promised to come with answers to questions and do things, that later never happened. Of course people start to ask even more questions when you fail to answer the simple ones.
I understand that it’s hard for you to answer ALL questions, and that you can’t invest all your time in this matter because it affects the ability to do your normal business.
This is also one of the reasons that I do the work I do, to assist companies like you to know what Valdi actually have said, because it’s impossible for everyone to keep up with all the information. Especially when the information comes from Swedish sources that I believe that you don’t have any access too.
This is also why I get so perplexed when trying to help you with facts that you wouldn’t have access too and you simply choose to ignore it. You are the only of the dozens of companies that I have been in contact with that simply choose to ignore these provided facts. Let me list some of the things that you have chosen to publicly ignore:
* The fact that all of Valdis previous know business attempts completely has failed.
* The fact that Valdi claims that shipping applies to all orders, including Swedish ones (you have over and over defended your actions about this with the answer that shipping is free to Scandinavia)
* The fact that Valdi shouldn’t be surprised by 7000 orders, because he has himself said that they prospected the sale of 200 000 laptops PER MONTH.
* The fact that Valdi over and over comes with VERIFIED LIES in his press releases and interviews.
And that’s just a few of them.

What also bothers me about this thing is that you over and over answers that you can’t answer questions due to contracts and privacy policies, when you over and over have let Medison clearly violate your contract agreements and terms of service.

You also make, in my ears VERY strange arguments arguments like this:
”Some people have invested their own significant amounts of time and effort to creating a genuine fervor about this topic. The reasons behind that are open to speculation”.
This is just the reverse of what many people are saying about. Let me change the wording so you might understand what I mean:
”2checkout.com have invested their own significant amounts of time and effort to promote a product that most likely don’t exist. The reasons behind that are open to speculation”.
Do you understand my point? And it’s not only anonymous posters on blogs and forums are spending much time on this, and have many questions that needs to be answered. Just check any Swedish newspaper you like, there hasn’t been one positive thing written about Medison for over a month, but loads of speculations and negative articles. Let me also make a quote from one of Sweden’s biggest IT-publications, written already on the 2nd of August: ”For gods sake, don’t buy the Medison-computer! [..] I believe that it’s a group of lunatics with wild grown plans and a big hubris”. What was their reason to write that so early? ”The reasons behind that are open to speculation”. Still don’t get it?

No one argues about that customers money can be lost (Even that you wrongly stated that orders had been received when they hadn’t) or that you should ”contents of conversations with Medison”. That just proves even more that you don’t read what your customers writes and asks.

The questions we need answers for at this moment, to settle some speculations at least, are the following:
* Are Medison still able to mark the open ”authorized orders” as shipped, without any proof at all like last time?
* What will you require Medison to do to open up orders of them again, and what proofs of this will you require?
* How long are the deadline until you cancel all orders if the above isn’t met?

These questions should be easy to answer and shouldn’t violate anything or anyone. These questions are the ones that currently are in the customers and the general public’s interest. Agreed?

p.s. The post that Cliff deleted was about 100 or so quotes from customers and suppliers saying stuff like this about 2co in relation to the Medison-affair:
”2CO can say what they want, but I will tell you this: I almost ordered an e-book off a website yesterday until I saw that the purchase would go through 2CO. I immediately left the website, deleted the bookmark, and won’t do business there.

2CO is doing serious damage to their own integrity (if they have any), and ,worse, they are unfairly bringing questionable integrity to their clients.”
d.s.

 
 
# Comment by kristin 2CO Staff
2007-09-17 16:17:34

Thenisse:

The questions you want answered are directly related to vendor status and that is confidential information. Since the orders erroneously marked shipped have been refunded there are no additional credit card orders in our system which need to be canceled.

2Checkout carries the liability in regard to this issue and the proofs we will require are also subject to negotiation between Medison and 2Checkout.

Your concern, as either a ”potential vendor or customer” should end with the knowledge that you, as a consumer, are protected and that you, as a vendor, won’t be the topic of conversation due to a self-appointed protector the the online shopping community who believes they should be privy to internal communications about your business, product or past.

2Checkout was founded to help the entrepreneur. We do business with a quite a few people with bad credit, who lost their merchant accounts due to excessive fraud or who simply want to dip their toes into the online selling community before diving in with long-term contracts, etc. That is no way is indicative of a lack of commitment toward protecting our consumers because we hold the fiscal responsibility. ”Buyer beware” doesn’t apply when 2Checkout is the middleman.

You’ve managed to skew that perspective around because we won’t play into your desire to be the source of information regarding Medison and if customers or vendors choose to go elsewhere because of that I would hope they’d reconsider because you’ve done a great disservice in generating any type of doubts about the integrity of our business.

Finally, should Medison get the kinks worked out I’ll personally be buying a laptop or two. Especially if it is sold via 2Checkout. It’s a bargain.

 
 
# Comment by thenisse
2007-09-17 16:58:29

Thanks for your reply. Can I take this answer as a confirmation that all other orders still are active? Would be great with a clarification on that, since many customers believe that everything is canceled from your previous replies, and it has also been reported that all orders has been canceled on news sites. You must agree on that it’s important with proper information to the customers at least?

I would also like to say that I don’t understand the part about ”you’ve done a great disservice in generating any type of doubts about the integrity of our business”. The only thing I have done is to ask questions in the public interest and provide you, other partners, media and customers with facts. If that creates doubts about your business it’s really your own fault!

 
 
# Comment by professor
2007-09-17 18:41:20

thenisse has been busy running a hate campaign of disinformation attempting to discredit Medison for far too long. The skewed and malicious personal attacks on Medison, Valdi Ivancic and 2Checkout were uncalled for and just demonstrate the juvenile mindset underlying the entire episode. The 2Checkout staff has responded professionally and responsibly. Bravo!

 
 
# Comment by whocares
2007-09-17 20:07:28

professor,

What are you a professor IN if I may ask?
After reading your post I would say that ”The Nutty Professor” would have been a more suitable nick.

But professors work with facts (unlike religious freaks) so I assume that you can present to us some FACTS regarding your accusations?

1. Can you present some facts that show that ”thenisse” has spread ANY disinformation (hateful or not)?

2. How can ANYONE mature with any sence of mind consider 2CO’s behaviour as professional and responsible so far? Is it because I’m to old (born in the 50’s) that I don’t understand your statements?

Perhaps 2CO calculated that ALL publicity is GOOD publicity but if that is the case I think they will find they were wrong.

 
 
# Comment by lukeduke
2007-09-18 01:18:38

Again I will say that thenisse has been more help in these forums then all of the 2Co reps combined ten fold. thenisse goes out of his way to answer questions posted by customers of 2Co. 2Co goes out of there way to ignore all questions and issue broad statements that have nothing to do with anythng anyone has asked. If 2Co was smart they would fire all there current staff and replace with thenisse in hopes of keeping some customers after this joke they have been playing on all of us.

 
 
# Comment by e 2CO Staff
2007-09-18 03:38:39

Confirmation of the status of any order, canceled or active, is confidential to 2Checkout, the buyer, and the vendor; regardless of the vendor in question. Our system issues automated email notifications to any customer whose order has been canceled or refunded, so there is no need to publicly post private information to inform them of their order status. They also have the ability to contact us at any time in regards to their specific order, and any questions they have regarding their personal order number can be addressed at that time.

The only parties who would profit from that information being publicly posted here are interested external parties, who despite their own personal level of concern, are not privy to it. Releasing information to fuel speculation, positive or negative, is not the same as providing information to parties who entitled to that information.

”* Are Medison still able to mark the open ”authorized orders” as shipped, without any proof at all like last time?”

Any vendor whose account is in an active status has the ability to mark the orders as shipped. No order marked shipped via our system is required to be verified prior to it being marked as shipped, as tracking information is not inputed until after the shipping status has changed. This is not a customer concern, because the money is not released to the vendor due to the order status update, it merely bills the card. The status of the Medison account is not public information, and cannot be disclosed.

”* What will you require Medison to do to open up orders of them again, and what proofs of this will you require?”

This is not public information, as it would not be made public what conditions a collections agency would put on your debt repayments, or what interest rate was charged to me by my credit card company. I’m unsure why you asked this question, after stating ”No one argues [...] that you should ”contents of conversations with Medison”, when our discussions of the terms of their financial operations would clearly fall under this heading.

”* How long are the deadline until you cancel all orders if the above isn’t met?”

This is again not public information, as it would clearly constitute a communication between 2Checkout and Medison. Customers who are willing to wait until the deadline has been reached will be aware when they receive their cancellation notice, those who are unwilling to wait until that time are free to cancel their transaction at any time. In either case, they will receive the information regarding their purchase.

”2co will keep on having Medison as a supplier, even that this is a clear violation of their own Terms of service for suppliers. The terms clearly states that the suppliers account should be ”immediately suspended”:”

Marking orders as shipped prior to the actual shipping of the product is in fact a violation of our Operating Regulations, and account suspension is the standard response. The Medison account’s ability to sell, as has been widely discussed, was suspended following our verification that the customers had not received their products. This issue appears to hinge on a misunderstanding of the word ”suspend” which means ”temporary abrogation or withholding or stoppage of payment of debts or claims”. It is used this way in our Operating Regulations, and is at one point followed with the words ”At the discretion of 2CO, such suspension may continue indefinitely, or result in a permanent suspension of Supplier”, and at other is differentiated from the words ”termination” or ”closed”.

Our policy states ”If 2CO ascertains that Supplier is allowing or conducting any of the following listed activities, the Account will be immediately suspended and funds for completed sales of products or services to 2CO will be withheld from Supplier”, and once it was fully ascertained (not assumed or conjectured) that the merchandise had not been shipped, the suspension was enacted as policy necessitated.

”instead of answering the questions, they go full out with a personal attack against me.”

A strange statement as only 1 out of 6 of the paragraphs mentioned you personally, and it only said that you were attempting to generate doubt about our integrity. In your previous post you quoted: ”2CO is doing serious damage to their own integrity (if they have any)”, which by most interpretations would be an opinion posted to generate doubt about our integrity. It was not quoted in any context that would be useful to bolstering the factual content of your statement, the only discernible purpose was to generate doubt about the factual content of ours.

”The only thing I have done is to ask questions in the public interest and provide you, other partners, media and customers with facts.”

Kristin’s statement being transfigured into a ”full out” personal attack however is emblematic of the hyperbole frequently used in your statements. Using exaggeration to fuel speculation does not come across as stating fact, it seems more like an attempt in skewing facts to influence opinion.

The sensationalism surrounding this account has made for interesting conversation, and has probably fueled the sales of Medison computers more efficiently than any efforts that Medison could have generated on it’s own. However, rehashing of the minutiae from all sides has obscured the actual issue. A 2Checkout vendor has offered a product that will either be delivered, or will not. This would apply to any product, were it webhosting, baby clothes, or a seminar on business planning. In all cases, if the product is delivered 2Checkout will assure customer satisfaction. If it is not, 2Checkout will reimburse the customer fully and take the necessary steps with the vendor involved to resolve the issue.

2Checkout will fulfill it’s obligation to it’s customers, to protect their interests while offering them the opportunities to purchase services or products they may otherwise have no means to obtain. We will also fulfill our obligation to our suppliers, allowing them to sell with confidence in our discretion, abilities, and the opportunity to reach a worldwide market. No amount of publicity, speculation, or negative hype will affect our mission to running a fair, ethical business.

Our responsibility to our customers and our respect for our vendors remain unchanged, and neither has been sacrificed in the viral maelstrom surrounding this topic. When this inevitably becomes old news, our reputation will continue to stand on the same ground it always has. Not speculation, or spin, or fervor over the next big thing; but rather our unshakable commitment to supporting and retaining the valued users who have made our company what it is today.

If you have any further questions regarding our policies or procedures, please feel free to ask. I would only ask that when doing so you remain respectful of both our character and our supplier’s rights to privacy, in regards to Medison or otherwise.

 
 
# Comment by drazvan
2007-09-18 21:51:33

I’ve been silently following this story ever since Medison starting making their outrageous claims. I have also done my share of investigating Medison’s claims and their past, including posting a few times on Engadget.

2Checkout doesn’t seem to realize the damage they are doing to themselves as a credit card processor and a trusted handler of transactions. As a business owner I would _never ever_ trust 2CO with my money in the future.

By ”shielding” a company (more like a person) who is an obvious fraud they cast a doubt over the moral integrity of their business. They probably just hope that (in some alternate reality universe) Medison will actually manage to manufacture and sell millions of their laptops and make 2CO rich in the process. But remember that Google and the Internet will always associate 2CO with the Medison failure, so when Medison is proven to be a fraud, 2CO will end up as the only company who supported this fraud and made it possible.

The masses might not remember or care about this, but I assure that the geeks that read and understand that this is a fraud are also the ones making suggestions to their employers about what technology providers to use, including for credit card processing. I think you’re shooting yourselves in the foot with this attitude, but what do I know… I’m just a business owner that will never do business (small as it might be compared with Medison’s millions of laptops) with 2CO.

Regards,
Razvan Dragomirescu

 
 
# Comment by cliff 2CO Staff
2007-09-18 22:10:06

Razvan,

Please read the previous posts in this thread from Kristin and especially the comment immediately before yours from e.

It’s pretty long, but worth reading, because it clarifies a number of issues and explains how, throughout this process, 2CO has protected the interests of its suppliers and customers.

I’m obligated to clarify that 2CO is not a ”payment processor”. More information on that subject is available in this thread:
http://www.2checkout.com/community/support/topic.php?id=350&page&replies=2

 
 
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