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What happens when you have no balance to cover CHARGEBACKS ?

Discussion in 'BlackHat Lounge' started by host32, Sep 29, 2015.

  1. host32

    host32 Regular Member

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    Hey guys

    I've been offering services online for years and never ran into any problems, had refunds and chargebacks but I always had either enough reserve to cover it or a secondary funding source.

    My question is, what would a payment processor like 2checkout for example do if chargebacks accrued and my reserve is not enough to cover the charges and my secondary funding source doesn't have enough balance ? are they simply gonna pay it out of their pockets and suspend my account or is there other procedures in cases like this ?

    Just curious

    - Host32
     
  2. elfgirl

    elfgirl Jr. VIP Jr. VIP

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    I am sure they will pay for you but will send you the bill for the amount (plus a fee maybe). If you don't pay for a while they can send it to collections.

    Either way, I am sure they will find a way to get their money.
     
  3. BusinessSmack

    BusinessSmack Jr. VIP Jr. VIP

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    I know paypal will shut ur account down and if u ever try to make another one the first thing they will do once they find out the accounts are linked is limit the new account and send u a nice bill if u want to continue. They will probably also send the owed amount to a collection's agency where it will only get more expensive every month. I would recommend paying it.
     
  4. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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    Send your details to debt collectors? Start legal proceedings? Who knows, it will depend on the company and the amount of money involved.
    As you mentioned 2checkout, take a look here:
    https://www.2checkout.com/policies/international-seller-services-agreement
     
  5. host32

    host32 Regular Member

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    Guys, I'm familiar with the term debt collectors however I'm not sure if that's what you are referring to above, is it ?

    However I believe what you said only applies if I live in the states, what happens if I live abroad ?
     
  6. rushuna

    rushuna Regular Member

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    They'll find a way to get their money back. They accept transactions from multiple countries.
     
  7. Zwielicht

    Zwielicht Moderator Staff Member Moderator Jr. VIP

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  8. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    Ancient thread I know but this is relevant.

    2CO has a payment method tied to your account and they just take the money from there.

    I got hit by some bleeping so and so for over 25K as he charged back 6 months of billing last week saying that the charges were fraudulent and he paid with American Express.

    2CO hit my bank account as there was not anywhere near that kind of money in my 2CO account.

    Plus they got their 20.00 fee just to kick a little sand in my face.

    A phone call from them before they did that would have been nice.
     
  9. Jiung

    Jiung Jr. VIP Jr. VIP

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    That's why many business don't accept American express.. their policies are do abusable