2checkout screwing me over $35,000 USD, advice needed

Interesting, I've generally heard pretty good things about 2co and actually found that they had very good customer support on the phone. But I guess everyone can have different experiences.

2CO Gone Wild. WTF?

If 2CO and Paypal are set up to scam people out of money,what would be a good payment processor to use?

So how the story is sorting out?

You don't know what OP got himself into.. It might be far worse than just a couple of shitty phones or so.
But I strongly advise op to seek legal advice. If he can't find a lawyer familiar with payment processors etc. he should search for online legal advice services, these can sometimes offer the best advice.

Before you do anything they want you to do, you have the right to request official documents, transcripts, statements, fines etc. to be delivered directly to your home address. And those also need to be official copies, supported with official prints.

Yeah the big fine you got is a result out of the way to high chargeback.They got a call for sure from mastercard and visa 1% is allowed ....some banks covers you when you make 3% but having 40-50% chargeback is a big problem and made a lot of companies bankrupt.
Talk to Paul Nisenbaum maybe he can help you out http://paymentmaven.com/

They did same thing to me but good thing is that the amount was only $1000, they closed my account without even giving single warning. The only reason they gave after closing my account was that my chargeback % which is 1.65% is bit higher then they allow. I got few chargebacks after my account was closed but still my account is in positive balance(i think) so i hope they don't charge any fine. They should give atleast one warning before closing accounts, very unprofessional payment processor.

Hey mate,

So did they sent any collection agency to you yet ot any updates ?
The same thing kinda happened with me.

Due to their shitty and poor Fraud system and chargeback systems, we suffered a loss of directly $1500 and more.
We used to use them for a webhost where we need to pay immediately for servers to resell to clients. We paid $1500 like that out of which we did got $1200 cashed out to bank.

But here comes the tricky part, after exactly 25-30 days (servers renew each month), almost all orders and clients (some did even after 2 months) started charging back the payments and our reserve and balance went -$1500~

They sent us also that negative balance and collection agency mail even though it was their own fault not warning us about their chargeback system and marking all Fraud orders as Passed.

Just wanted to know what happened with you

Op, what was your chargeback %? I imagine it was in the double digits to evoke such a response.

are they from the USA? tell them you will file an FTC complaint if they continue, then follow through if they don't listen. after that, tell them you're hiring a lawyer and you're going to sue them. there's nothing illegal about selling phones from china, as long as they are real. i think the force is with you on this one

Just wanted to say I read this thread and, being a user of 2co for some of my sales, was disappointed to hear of your troubles. I am sorry for you and wish that you can resolve things. Definitely work on documenting everything you can, and be ready to get tough - yes, get legal help! Since I am not a lawyer I can't give specific advice but I do wish you all the best!

Tim Roth said:

That's absolutely FALSE. You can sue anyone for any reason.
Where does he mentioned he was selling fakes phones ? I read Chinese only, maybe not in norm?!

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Yeah buddy, he was selling legit items and i guess that's why they initially fined him $400k. And only from selling "10 or so phones"? Bullshit.

shapsp said:

2checkout could be/should be their biggest customer and this PSP (payment service provider) is based in Cyprus

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Everything I have ever dealt with that came out of Cyprus was a scam. I would for sure look into this. That place is a known location for scammers. Contact Paypal, they will explain exactly what I am speaking of.

You can get free legal advice from a lawyer, call around. And to me this seems like extortion. Sending you fake documents and a fake fine and saying you owe them 400k and then all the sudden it drops down 350k, they are scaring you into paying up. Keep copies of those documents and use them in court.

I'm not a lawyer but like I said, call around and get some advice. It's free.

An update to all fellow BHW members who read and wrote here to help me out,

First it was a 400K fine, then they claimed to have negotiated with the association that issued the fine and it came done to 35K after the 15k that i had on reserve (total - 50k fine).

Strangely, fine came after 1 month since my account was closed.
And, also, right now, 2co themselves are unable to accept Master-card from some countries/accounts - which clearly shows that the problem could be with them and not me. They could have accepted too many vero sellers and all that could have affected them and when they are charged for it, they could be covering their losses by using closed accounts reserve funds. Hate it.

My account,
1. i didn't have high chargebacks - about 1.2% at max and more than half of it would be frauds.
2. i used the account to sell the phones part time as i had a relatively bigger business doing something else (phones - just testing waters - paid big time i guess.)
3. it has been more than a mth since fine details were asked - but nothing has been given.

At this point of time, i just feel that i should not mail them any longer and consider this matter to be a closed chapter. Of course, if i do that i won't see that 15K USD which i did rightfully earn spending hours of slp and etc. But, i am just worried that if i provoke them and they being a bigger company and having the money to cover their asses and also knowing the payment industry for years now, they can manipulate things big time and get me into bigger shit.

So, as of now, i have decided to forget them and my money - it is hard but not willing to take the chance and be in a much more critical stage.

To all those who replied and gave their piece of advice, i thank you.

Damn. Sorry to hear that. I dont understand what makes these companies think they can hold on to peoples money like its cool. Its becoming too common now to just hold people's honest earnings for unjustified reasons.

Mod please move this thread to the shitlist section to warn other members.

Mod please move this thread to the shitlist section to warn other members.

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this is not neccesary as most people wont do such mistake

jox51 said:

Damn. Sorry to hear that. I dont understand what makes these companies think they can hold on to peoples money like its cool. Its becoming too common now to just hold people's honest earnings for unjustified reasons.

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It is a payment industry thing, but, i have been with nearly 5 different payment processors and 2co was the worse for me, In all aspects, not just because of the fine and very unprofessional closure of account -
why i say it is unprofessional?
they closed the account and there was not even a single e-mail from them.
I had to spend hours looking if my CDN, JS, CSS, Files were crashed/hacked because, i was receiving orders but payment was not coming. Only after nearly 2 hours, i figured out that my account was closed.
Number of frauds is just too much - fraud scanning is the worse.
PayPal disputes - good thing is that they accept PayPal for you. Bad thing is that they close disputes in 2 days. If you don't reply to dispute in 48 hrs, your dispute will be closed in favor of buyer. Dispute/chargeback follow up is bad as you can't see what are the payments that are being in "denial", you will have to manually follow each e-mail they send you and track progress from there.
chargeback fees goes upto $50USD - $65USD. My classic moment to treasure was when i had an indian customer who ordered an item for $2USD and he did a chargeback and the chargeback fee on the order ended to be $65 USD because, he paid in another currency and my chargeback percentage for the month was above 1% - why was it above 1%? Interestingly, they closed my account and consider any chargeback over number of sales for that current month of course if my account is closed, the sales will be zero and they will MILK your money there! i seriously feel like punching Alan (founder of 2co) or whoever came up with these illogical fee structure. I just really really hope that they will vanish in the payment industry.

LOL-Blaster said:

Mod please move this thread to the shitlist section to warn other members.

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No need to do that, because, 2co works well for some.

mrsharz said:

this is not neccesary as most people wont do such mistake

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If you read my thread, i really don't feel i commited a crime or whatsoever, i resold phones that were listed on top websites.
They could go on and i could not.
And, they still do service other buyers. It's just my luck with them.

A question which is slightly off topic - which payment processor would you recommend except paypal (and of course 2co)?