Report: #1042215

Complaint Review: 2checkout

  • Submitted: Wed, April 10, 2013
  • Updated: Wed, April 17, 2013
  • Reported By: cza — Mombasa Internet
  • 2checkout
    Ohio, Colombus
    United States of America

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I have had a healthy business relationship with for 2 years. On 2nd January 2013, they contacted me stating that my account was closed and that I could only have my account balance after a period of 90 days. After the 90 days, I wrote to them reminding them that I was expecting the money upon which they responded by stating that the money was forfeited because I violated their Terms of Usage. Keeping the money for 90 days was enough punishment or me and as if that was not enough, they now want to punish me twice by stealing my money!! I find this immoral under the guise of violation of TOS. A forced forfeiture is open robbery. I will be filling a lawsuit soon while at the same time I wish to warn potential and current users of 2CO to think twice before trusting them with your money. There are many reliable providers who will not steal your money under the guise of TOS violation. This might appear as a story to you now but reality will hit when you become the next victim.
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This report was posted on Ripoff Report on 04/10/2013 01:05 PM and is a permanent record located here: The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#1 Author of original report

I want my money back

AUTHOR: cza - ()

When you use the word 'may', in your TOS, it leaves room for uncertainty as your interpretation can swing for or against the violator. What you should explain is the criteria you use to determine cases befitting forfeiture and those which qualify for remittance. Forfeiture can also be partial or whole, again not specified in your TOS. Petty as this may sound, your TOS is ambiguous and deceptive. Having had a lengthy conversation with Nathan Butler of your Risk Department, he made it clear that the forfeiture is to protect yourselves against refunds or fines by credit card companies. I have stated that I do not mind 2checkout extending the holding period for my money (over and above the 90 days) just to be sure that there will be no further refunds or fines and in case there are any, I would demand to see a proof that indeed my reserve money was used to cover direct costs related to my account. Short of that, I expect you to remit my money and not to use it to cover costs related to others or to strengthen your bottom line. You mention Payment Industry standards in some of your communication but having done a wide research, the Payment Industry Standard does not subscribe to the doctrine of forfeiture. Have your legal team revise the clause of forfeiture for clarity and certainty moving forward but in the meantime, remit my money or keep it for another three months if you wish and release it when the dust (if any) has settled on your side.

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#2 Author of original report

2checkout 2co Forced forfeiture under the guise of TOS Violation Internet

AUTHOR: cza - ()

I truly appreciate your response. My concern is that in your TOS, you have not  indicated what 'Clear Violation' is to warrant forfeiture and what falls under what you may consider as 'Doubtful or Unclear Violation'.  The omission of this vital information is what makes a victim like me conclude that the forfeiture is discriminatory and in bad taste as the determination is exclusively in your hands since all what the victim can do is cross his fingers and Pray to His God. My sentiments are supported by the following additional information:
1. On the 6th April, I wrote an email to your president Tom Dailey requesting for his intervention in the matter and as of now (18th April), I have not even received an acknowledgement. I will forward the exact email to your Seller Support team for confidentiality.
2. Within the 90 days, there were refunds worth USD 300 ONLY and were prompted by a malicious customer who took advantage of the 45 day grace period given by paypal to launch a complaint. I responded to the claims appropriately.
3. We did not allow any payment by credit cards. This is in recognition of the prevalence of credit card fraud in the market we operate. The need to retain the money to cover for any refunds does not therefore arise, hence my mega question: for what purpose is my USD 71,100 being kept? Is it because I am of African descent operating from Kenya? How about retaining the money for an extra one month (or a period you deem necessary) if indeed your objective is to cover for any future (now current) refunds? And how do you account for such money in your books? As a miscellaneous source of Income? 

I will certainly take your offer to write to the Seller Support team since I exhausted my patience with the Risk Department led by Mr. Nathan Butler and Mr. Siad. I have also referred this case to a team of Lawyers in the USA and are currently analyzing the pertinent issues and if they so recommend, we will present our case in Court in pursuit of justice and fairness. In the meantime, I will not stop alerting your current and potential users of the dangers of the 2CO "forfeiture secret weapon' lest they fall in a similar trap on social media and sites such as this one. 
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#3 UPDATE Employee


AUTHOR: 2Checkout - ()

We appreciate the feedback you provided us, however your situation is not a guise to steal your money; we are sorry to hear you have made this conclusion. As our Terms of Service documentation states, any reserves remaining in the account after it has been closed are released back to the seller in 90 days. We do this to cover for any refunds or chargebacks you may have coming through the account during the months following the closure. We always release the reserves unless there is a clear violation made by the seller. These instances are extremely rare and if you are following the rules within your contract and the payments industry, there should not be a problem. If you would like to continue the discussion about your specific case, please email us at


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