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Payment Processing Discuss payment processing with PayPal, Stripe, Authorize.Net, Bitcoin and other processors for your products and services.

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Old 03-31-2013
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Default 2checkout chargeback percentage

2checkout has a very strict chargeback rate policy, if your chargeback percentage (or Paypal disputes) increase more than 1% your account is in trouble. We sell SEO & internet marketing services and due to some delays had 3.4% chargeback last month and were shut down with a large amount in the account which they are holding for 90 days (still beats Paypal's 180 days BS) but the thing that makes me cry tears is that about half of these were rebills. I've lost a steady monthly income due to a few chargebacks.

I would not recommend them for subscriptions especially if you are selling services or anything which may beget a chargeback other than for fraud.

While we had the account though it was ideal- we would get paid every Friday wire into the bank account without problems and customers could pay by Paypal.
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Old 09-28-2015
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Default Re: 2checkout chargeback percentage

1% is the industry standard. Any merchant account provider will shut you down if you exceed it (except maybe some high risk ones). It's better to refund any customer who complains even if you were not in the wrong.
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Old 09-28-2015
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Default Re: 2checkout chargeback percentage

The 1% rule is in place on nearly ALL mainstream merchant accounts because it is a part of the Visa and Masercard Association rules.

Your bets bet for subscription services is to use multiple payment providers. That way, if one goes down, your customers can choose another method. In the case of what you experienced, I would sen an email to all of my customers who were using 2checkout saying that due to circumstances beyond your control, you can no longer accept them as a payment method and list your other payment methods. I would also offer them 25% (or whatever percentage you are comfortable with) off on their next month's bill for choosing an alternate payment method.

You might want to check out something like Stripe and accepting PayPal directly. Yes, you will have to jump through some hoops to do that, but it is better than losing your income!

Lastly, you MIGHT want to find a high-risk merchant processor. They take more in fees and there may be a rolling reserve on your account, but they will not shut you down on a moment's notice and will also not shut you down just because your chargeback rate went to 1.5% - they are LOOKING for business like this! Their best customers are the ones who sell totally legal products but have a higher than average chargeback rate. It is what they specialize in.
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Old 10-04-2016
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Default Re: 2checkout chargeback percentage

2co just recently closed my aged(2years 3months) account with 0 disputes/chargebacks/problems and maybe ~40k in revenue over the years.... of course no explanation whatsoever.... just a polite f you in the face.
I guess it has something to do with me selling services. As I've heard same thing has happened to many more 2co users.
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