Quote:
Originally Posted by clarkkent
Three reasons you are way too easy on Verotel:
1. The chargebacks wouldn't have happened in the first place if it wasn't for Verotel. Those were not regular chargebacks, those people were exploiting a vulnerability in Verotel's system (or their partner's but that's their problem), that's why almost 100% of ddeu transactions are chargebacks. Sarah said that exact thing
2. Other billing companies detect chargebacks around the time they occur (and cancel those members immediately), they don't allow them to continue with their membership for 3 years and use a shitload of my bandwidth for free
3. Apart from hiring the poor girl Sarah to apologize to everybody, they made no serious effort to acknowledge their part of the blame. Apart from 20% reduction (which includes their own fees of 14% so its really 6%) they are still sticking to expecting every webmaster to shoulder almost all of the cost. If they at least offered 50/50 that would be something. I can see a more serious company like CCBill writing off the entire amount if this happened to them
What if the holdback is in the region of $500 (and shrinking since I didn't use Verotel for any new signups in months) and the amount owed is $3k? What then, smart guy?
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I have been through these things with a handful of processors and companies in the decade I have been doing business online. Some still around. Some not. I am familiar with the merchant bank, third party processor relationship. How it works. Where the weak points are, and where the break down in the chain are, or can happen.
I am not excusing anyone. It is an inconvenience to everyone. However, Verotel is at the mercy of their merchant bank(s) and agreements. To their credit, they are attempting to work with people. I can think of the other times I have had to go with similar, there was no "working with you". They either went out of business. You lost your money. Or had to wait 6+ months for errors to be fixed and get some percentage of your back owed cash.
As for your last remark, then I suppose they will do whatever their T.O.S. said they could do, and you agreed to, when you signed up with them. So if they have to sue you to recoup the money, then I suppose that is what they have to do.