Snobbery of Euroconex

leonvquinn

Euroconex Complaint:

I recently tried to setup an Online Merchant Account through Bank of
Ireland and Euroconex and had a very depressing time of it! For an IT
company, accepting credits cards online for both services and products
is somewhat of a necessity these days. It looks a little more
professional than the likes of Paypal and it opens a few new doors in
terms of making it easier to do business and get paid. In short its a
tool that will help grow a business.

I proceeded with a lenghty and complex application process after first
explaining my business and plan over the phone. A few weeks later I
was sent a letter rejecting my application without a reason why and
without leave to appeal. Pretty rude I though..I rang Euroconex in a
huff and they still didn't really give me a reason why but I kind of
inferred that it was because I had links to www.psychics.ie a site I
designed and also an ebay shop selling Tarot cards which I run. They
also seemed to suggest that I couldn't have a merchant account because
I was a sole trader.

Now I find these reasons bizzare and my treatment as a potential
customer appaling and I wonder why any company trying to expand would
be blocked in the current climate of business growth and enterprise??

Any answers anybody and has anyone had a similar experience?

dahamsta

I'm a sole trader and I have two merchant accounts. BOI made me take one for offline transactions and another for online transactions. And I had to fight for them.

leonvquinn

The actually MADE you take TWO! you're lucky, whats your secret?

I found it bizzare that an actual bank would refuse my money!
I think Worldpay is a much better option. Expensive but at least they handle everything. No grovelling to banks.! And by the way, Euroconex havn't even had the decency to reply to my complaint and request for a reason for their rejection of my application

dahamsta

I didn't want two merchant accounts, but this was before irish banks understood t'Internet. It could be argued that they still don't.

It's not about wanting your money, if they thought they'd make lots of money off you legitimately, they'd take you in a shot. It's the legitimately bit they have a problem with; they need to manage risk, and having looked at you, they think you're too much of a risk. You need to prove to them that you're not.

Sorry, I agree that it's way too hard for small companies to start transacting on the Internet in Ireland, but that's still the way it works. You need to work with the idiocy and overcome it. As to Euroconex's customer service, well, outing them here as ignorant is one way to approach it. Another is to chase it up the chain in-company. Find the CEO and call him. It's rarely difficult.

WorldPay is overpriced, underdeveloped and awkward to work with, but it's a valid approach. However If I was you I'd follow Michele's advice in another thread and start with PayPal, then move to Realex when you can afford it.

adam

Sponge Bob

worldpays api is very complex , do what adam says and start with paypal.

mcaul

Ulster Bank, AIB & Nat Irish all have merchant services.

Ulsterbank seems to be best as you can accept UK debit cards over the internet. - Also amex, & Diners.

Takes about 2 weeks for full set-up, if you are a sole trader expect a longer wait. Banking with the bank that provides the merchant services would be a help as their commercial manager can give references.

If you don't have tons of transactions it is cheaper and easier to key in the card details onto the key pad as per telephone sales. - Don't pay over 1.5% in commission.

ballooba

Talk to RealEx. They might help you out.

leonvquinn

I understand bank nervousness and the risk factor but I suppose my main argument is that I would actually like to have been told why I was considered a risk in the first place as I can't fathom why. I've never been called a 'risk' in my life! Its me that taking the risk asking the bank to handle MY money!

I won't be contacting the Euroconex CEO as I'm no longer interested in Euroconex as an option. If they don't want my business fine. I'm here just to bad mouth them and try to undo some of the damage they've done me.

As for other options, I've been using paypal for years and wanted to move to the next level as they don't have a virtual terminal for Irish customers yet (always last on the list!) Realex are way too expensive and seem to only cater for large multinational companies - again sole traders are deemed un-important!

arctictree

leonvquinn wrote:

I understand bank nervousness and the risk factor but I suppose my main argument is that I would actually like to have been told why I was considered a risk in the first place as I can't fathom why.

Totally agree with you here - you should have been told why

leonvquinn wrote:

I've never been called a 'risk' in my life! Its me that taking the risk asking the bank to handle MY money!

Actually what euroconex are trying to protect against is a cardholder reversing a transaction (called a chargeback in the industry). Here is what happens:

1) Someone buys something from you illegally (stolen card, you overcharge them/charge them twice etc etc)
2) The person who owns the card rings their bank and orders the transaction to be reversed.
3) VISA (or whoever the card is) charges the acquirer (ie euroconex) the amount of the transaction and gives the money back to the cardholder.
4) euroconex then try to get the money off you (the merchant).
5) In the meantime you could have closed shop/moved away etc etc and now you have the money.

This is a small example but there are many complex fraud schemes in operation out there by bogus merchants. These schemes can result in a tidy profit and the organisation that loses is the acquiring bank (ie euroconex). Also, the credit card industry goes out of their way to avoid media coverage for these cases as it could reduce card transactions etc etc

leonvquinn wrote:

I won't be contacting the Euroconex CEO as I'm no longer interested in Euroconex as an option. If they don't want my business fine. I'm here just to bad mouth them and try to undo some of the damage they've done me.

Again, their customer service seems not to be up to scratch. I could again go on here about horror stories but I won't! Note that the other banks have a similar process of vetting merchants - its called C&R in the industry - credit and risk.

leonvquinn wrote:

As for other options, I've been using paypal for years and wanted to move to the next level as they don't have a virtual terminal for Irish customers yet (always last on the list!) Realex are way too expensive and seem to only cater for large multinational companies - again sole traders are deemed un-important!

Paypal is useful to start off with but they charge too much per transaction. So you need to move from them for large volumes. Also there is more cases of customer drop off using paypal. Problem is that a lot of people dont understand paypal and will just exit your site.

Just to let you know. None of the banks in Ireland allow you 'the merchant' to connect to them directly. You must go through an internet PSP (Payment Service Provider). In Ireland, this is Realex. So to trade online here, you need:

1) A merchant account with a bank euroconex/AIB/Ulsterbank etc
2) A PSP account with realex

You need this in that order. Realex will ask you for your bank merchant ID.

PM me if you or anyone else needs more info. I worked in the credit card industry for a while and have a fair idea on how it works.

A

leonvquinn

Thanx for all of the info but the bottom line remains. I'm just a simple, honest, low-level trader trying to expand my business and make a decent living. Not only have my ambitions been blocked but I've also been treated like **** by an institution that could have benefited from my business. My friend who decided to keep all his money under his mattress years ago because he didn't trust banks was right.

mcaul

It is as simple as using the merchant service of whatevr bank you bank with. Their commercial manager can cut through all the red tape.

My business is totally new - in fact the main part only opens next month - its totally online and yet it took Ulster Bank just over 2 weeks to set up merchant facilities and install the machine. The branch managers in all the banks want new business and will help wherever possible.

Word of advice - tell them you take orders over the phone & mail order along with internet - as unless you are doing 50+ orders per day you can key in all sales as "cardholder not present" sales - takes a few minutes but it cuts all the crappy false orders and you can use your own head as to whether an order is genuine or not. - Also means you will get a far quicker approval for the account.

martind10

has anyone here approached any of the main banks with a business plan, looking to set up a merchant account. eg ulster bank, aib etc?
Or is this even an option without an established business?

Slice

Why don't you apply for the reason you were rejected through the data protection act?