Cautionary tale for users of Nochex

Mr C · #1 11th December 2006, 14:27

I was delighted when I first discovered Nochex years ago. Finally, an alternative to the arrogant, high risk organisation forced upon us by eBay.

Like many, I initally offered Nochex as an alternative payment method. But, after an extremely unpleasant experience with eBay's pet payment handler, I opted to use Nochex exclusively.

I used all my eBay listings to promote the company to the best of my ability, praising Nochex as 'The UK's answer to Paypal' and encouraging buyers to 'Support British Business' by using Nochex. I made a point of always mentioning that buyers had paid by Nochex in the feedback comments I left. Over time, I noticed an increase in the number of people happy to use Nochex. Things began to look rather encouraging.

Then in August I was informed that I had reached a transaction limit at which Nochex were legally obligated to gather certain information from me. I was aware that this would happen and was not in the least worried about it. I had always conducted my Nochex account in an impeccable fashion. Within hours of receiving the request for information from the 'Monitoring Team' I had replied, giving all that was requested of me.

For over a month I heard nothing and continued trading as normal. Then another message, apologising for the delay and requesting further information. Dutifully I replied promptly once again. Two further requests for information followed that same day. To each I replied promptly and comprehensively.

Another silence followed. During the next couple of months I was relatively inactive on eBay, pursuing other business interests and preparing a business plan for 2007. I had plans to launch my own e-commerce site that would be run alongside my eBay seller's account. I intended to apply for a Nochex merchant account, too.

Early in December I listed the first items on eBay since circa October. I was pleased to see that I had made a double sale first thing the following morning. But I was also surprised to see a message from my buyer, asking why he had received an error message stating that my account was 'No longer active' when he had tried to pay by Nochex.

To cut an already long story short, I found out that Nochex had closed my account with neither warning nor notice. To this day I do not know for sure exactly when they did this, or exactly why. My attempts to resolve the matter for the last week have thus far been a frustrating excercise in futility.

I have been told that my account was closed as 'Nochex were unable to verify trading activities'. What a load of rubbish! I have invoices from reputable, UK suppliers. These most certainly prove my trading activities. I would have gladly shared these with Nochex. A pity they did not ask for them ...

I have since asked for my account to be reinstated, offering to send copies of these invoices. Amazingly the reply has been 'We will not elaborate on or reconsider our decision'. This despite the fact that I have in my possession all the evidence that they could ever legitimately require? It beggars belief.

Clearly this has a very serious impact upon my ability to trade on eBay over the Festive period. It also impacts my business plans for 2007, as Nochex state any new account opened by me will be closed.

I have done nothing wrong!

So firstly, I would like to take the opportunity to thank Nochex, from the bottom of my heart, for their part in killing my eBay selling business, ruining Christmas for my family and I and of course, for throwing a huge spanner into the works of my business plans for 2007.

Secondly, I would like my experiences to serve as a warning to anyone currently reliant upon Nochex. Be extremely careful in any dealings with the 'Account Monitoring' team. Do not think that replying promptly and answering their questions will prove sufficient. Once you have provided any information they request, rack your brains for anything more that you could possibly provide and then SEND IT, whether or not they have requested it. DO NOT interpret a delay after their initial enquiries as evidence that all is well. CHASE THEM and ask if they have all they need.

BE AWARE that your account could be closed at any time, without warning or subsequent notification and that once this happens, no matter what you say or do, the chances of getting your account back are slim.

DO NOT ASSUME that just because you have done nothing wrong means this cannot happen to you. It happened to me. It can happen to anyone.

When this all began, I created a thread on Nochex's forum 'The Greenroom' and kept it up to date as developments occurred. Shortly after the thread had run to two pages, the 'Complaints' board, part of the 'Feedback' section, was hidden from public view. You have to wonder why, if they know they have done nothing wrong ...

The link is as follows:
h t t p : / / greenroom . nochex . com / showthread.php?t=10072

(Without the spaces, obviously!)

Tread carefully, people.

Chris H · #2 11th December 2006, 15:53

Your link is expecting username and password.

#3 11th December 2006, 20:22

I have to say that in 2 years of using Nochex I have never had a problem of any kind with them. This is an unfortunate turn of events for you but I can equally vouch for their efficiency.

Aspect Investments · #4 12th December 2006, 13:24

I have always been satisfied with Nochex until I asked about a merchant account, and they ignored my emails, which I was not happy about.

I have used worldpay for a number of years, they are fine.

The link is on my signature if your interested.

Carl-CSNM · #5 12th December 2006, 13:39

Also had no issues with Nochex yet <touch wood>

WorldPay is too expensive.

Eagle · #6 12th December 2006, 13:54

Nochex had a GOLDEN opportunity to go head to head with PayPal when they rebranded in 2005.

Doubtless, they had the budget for a big roll-out campaign but, instead, they blew it (in my opinion)...

It's a real shame.

Aspect Investments · #7 12th December 2006, 14:28

Quote:

Originally Posted by CSN-Carl

Also had no issues with Nochex yet <touch wood>

WorldPay is too expensive.

You get what you pay for Carl.

If I have a Worldpay issue, which is very rare, I just pick up the phone and its sorted out there and then.

Can you say the same for Paypal and Nochex?

Eagle · #8 12th December 2006, 21:15

Quote:

Originally Posted by EBA Advisor

Can you say the same for Paypal and Nochex?

Yes.

I've spoken to PayPal via phone on several occasions and problems have been sorted out right away.

Carl-CSNM · #9 12th December 2006, 21:23

Quote:

Originally Posted by EBA Advisor

You get what you pay for Carl.

If I have a Worldpay issue, which is very rare, I just pick up the phone and its sorted out there and then.

Can you say the same for Paypal and Nochex?

Yes I can actually, I usually email as I find it easier same goes for Velocit Pay.

WorldPay wanted silly money setup fee from me and then keep all my money for a month!

Talkrussian · #10 16th December 2006, 10:09

Talk Russian used to use Nochex, but then hit this mysterious 'trading limit' nonsense a while back. Requests for information etc then followed.

At this point we got bored with them, and looked instead to set up as card merchants. There were lots of hoops, but we jumped through them and, even on a moderate volume, it's cheaper and easier even though you get a hit for set up fees.

One tip, go to a big bank direct. You can get the money in 3 days (not 30), they'll set up card not present quickly. They're a bit jumpy about online, but they'll do that too if you ask. You can get a deal of around 2 per-cent on card not present (and about 25p for debit cards). You pay more for on-line stuff through a gateway though.

And guess what, running your own merchant acc is much less hassle!

Neil McCafferty