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2Checkout No longer serving WHMCS customers


davidpaj

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Did anyone get a notice today from 2checkout that web hosting is now considered a cyber locker business and they wil no longer serve us? I can post the notice from them if need be. I thought 2checkout and whmcs were partners, which is why I signed up.

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you get this

 

By 2checkout

 

Hello,

 

 

We have an important message to share about the newest banking regulations and requirements which will affect your business. Due to the latest VISA and MasterCard protocols, we are no longer supporting cyberlocker service businesses. As a result, your 2Checkout account will be closed on September 15, 2015. We regret we are unable to meet your business’s needs.

 

 

Any remaining funds in your account will be paid out in 90 days after your most recent sale. Should you have any questions regarding your account, please contact sellersupport@2co.com or 1 877-294-0273.

 

 

To help you avoid disruption to your business, we can recommend contacting AlliedWallet, a provider that works with cyberlocker service businesses. Visit their website to apply.

 

 

Again, we regret we are unable to support your business. We wish you and your business the very best.

 

 

Regards,

 

 

2Checkout Seller Support SellerSupport@2co.com + 1 614 921 2450 Toll Free: 1 877-294-0273

Edited by wsa
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you get this

 

By 2checkout

 

Hello,

 

 

We have an important message to share about the newest banking regulations and requirements which will affect your business. Due to the latest VISA and MasterCard protocols, we are no longer supporting cyberlocker service businesses. As a result, your 2Checkout account will be closed on September 15, 2015. We regret we are unable to meet your business’s needs.

 

 

Any remaining funds in your account will be paid out in 90 days after your most recent sale. Should you have any questions regarding your account, please contact sellersupport@2co.com or 1 877-294-0273.

 

 

To help you avoid disruption to your business, we can recommend contacting AlliedWallet, a provider that works with cyberlocker service businesses. Visit their website to apply.

 

 

Again, we regret we are unable to support your business. We wish you and your business the very best.

 

 

Regards,

 

 

2Checkout Seller Support SellerSupport@2co.com + 1 614 921 2450 Toll Free: 1 877-294-0273

 

That's the one I got....

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  • 2 weeks later...

Got a similar one here...

 

It was a pleasure to speak with you today.

 

As discussed, due to a change in card brand rules and requirements, we are no longer supporting businesses that involve archival file storage, file transfer, or file sharing. This includes businesses such as yours that either facilitate the transfer or storage of large files, or distribute files via download or “streaming” playback. Please accept my apologies for any disappointment this may present to you.

 

As a result of this change, your 2Checkout merchant account will be closed on September 15, 2015. To help you avoid disruption to your business, you may wish to visit Allied Wallet's website to apply for a merchant account.

 

Funny thing is that there are no such Visa or Masercard regulations - if there were, it would mean that no hosting company can accept Visa or Mastercard online, which is ridiculous.

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Got a similar one here...

 

 

 

Funny thing is that there are no such Visa or Masercard regulations - if there were, it would mean that no hosting company can accept Visa or Mastercard online, which is ridiculous.

 

I don't know the case here though I am sure they could apply such restrictions on any authorised company (instead of globally) for example, if they're getting to many chargebacks from this industry via 2co. They could have put enough pressure to stop their partnerships (which would cause issues for the majority of their client base) which led to this decision.

 

I know one UK based payment processor who had restrictions specifically applied to them.

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May be it's only them who got this restriction... Anyway, 2Checkout is not an option for hosting providers anymore. I've also tried contacting the company they suggested, AlliedWalled, they also told me that they are not going to work with hosting business:

We regret to inform you that Allied Wallet cannot process for this account. The website/business practice has fallen outside the parameters for acceptable risk for our banking partners.

 

Their risk department seems to be overcautious. Our business has had only 2 chargebacks out of thousands of transactions... If this is too risky, then I don't know what kind of business they're going to work with.

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This is very disturbing. We have an account with 2CheckOut and I have not received this email but I'm afraid we might. Maybe it'd be a good idea to contact the account manager?

looks like they don't work with hosting providers anymore, time to move

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I thought 2checkout and whmcs were partners, which is why I signed up.

 

It has nothing to do with WHMCS, it seems 2Co will no longer deal with cyberlocker service businesses.

 

A file hosting service, cloud storage service, online file storage provider, or cyberlocker is an Internet hosting service specifically designed to host user files. It allows users to upload files that could then be accessed over the internet from a different computer, tablet, smart phone or other networked device, by the same user or possibly by other users, after a password or other authentication is provided. Typically, the services allow HTTP access, and sometimes FTP access. Related services are content-displaying hosting services (i.e. video and image), virtual storage, and remote backup.
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May be it's only them who got this restriction... Anyway, 2Checkout is not an option for hosting providers anymore. I've also tried contacting the company they suggested, AlliedWalled, they also told me that they are not going to work with hosting business: Their risk department seems to be overcautious. Our business has had only 2 chargebacks out of thousands of transactions... If this is too risky, then I don't know what kind of business they're going to work with.

 

 

At that chargeback ratio it most likely isn't your account specifically but the industry. This industry does see a lot of charge backs.

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May be it's only them who got this restriction... Anyway, 2Checkout is not an option for hosting providers anymore. I've also tried contacting the company they suggested, AlliedWalled, they also told me that they are not going to work with hosting business:

 

 

Their risk department seems to be overcautious. Our business has had only 2 chargebacks out of thousands of transactions... If this is too risky, then I don't know what kind of business they're going to work with.

 

If it involved Visa and Mastercard, and it was excessive chargebacks due to the hosting industry, then the restrictions would be placed on all payment providers who deal with web hosts. It will be an internal decision by 2Co and they will be just bringing Visa and Mastercard into the mix so it makes them look like a victim

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