What's your case? All comments are welcome.
We started 4Singes.ca in November 2003. One of the most important issues we had to resolve was how to process credit card payments. Paypal was one of the candidates, and as there were no startup and monthly fee we programmed our payment processing interface with Paypal. It took, by the way, like a couple of days.
Well, I was sick of Paypal so-called customer service, and as there were no options (you stick with their payment pages, and have to use them with all errors and trouble included), we decided to change the payment processor. Worldpay was by our way, and we applied.
It was good for a couple of months, there were much more payments (you'll understand why a bit later), and we were happy. Then chargebacks started. I tried to send Worldpay guys our technical logs to prove the purchase, but they don't accept them because the only proof they can accept is the signed cheque. For online purchase, huh? Each chargeback costs you $20, and we got more and more of them. It turned out that about 50% of money we got through Worldpay were stolen and should be refunded.
Then they sent us a very strong and official message that as the percent of chargebacks is very high in our case (you know, I immediately felt guilty) they reserved some money at our account to be able to cover possible chargebacks in future. So, we were not even able to withdraw our cash.
What we were supposed to do? It's not surplus profit to cover all Worldpay's faults, and they definitely didn't think that they were their faults. See: somebody pays, we consider the payment as legal, provide service for this person for a couple of months, and then, when the owner of stolen credit card receives his statement, it turnes out that the transaction was fraudulent and the money should be refunded. But how can you "refund" 2 months database access? Why we should pay for Worldpay's fault? Oh, it's easy: just read the contract before you signed it. So, we decided to give up.
By the way, we never had chargeback problems with Paypal, and as Paypal doesn't charge setup fee, it took about half an hour to return back to them. They forgave us for our betrayal, we forgave them for the horrible customer service. Their customer service even doesn't bother me any more, I treat it like an anecdote to tell people and have fun. You just need some time to absorb it, and as you accepted it as it is (or isn't), you are happy.
Well, we sent to Worldpay the official note that we close the account and don't want to deal with them any more. The account has been closed with the credit balance about $430 which were frozen by Worldpay to cover all possible chargebacks. We forgot about them like a nightmare.
Do you think that's it? No, no. No! About a month ago we've got a threatening letter from Worldpay credit bureau (what the hell is that, by the way? Крыша?) that we still owe them $1600 and must pay before "any further action being taken". What do you think? Chargebacks, off course. Chargebacks happened after the account has been closed. I didn't think we had to pay them anything because as the account's closed, the agreement should be considered as terminated, but we paid, off course, to let them choke. But we decided to design this unpretentious site to protect small and startup business owners from these racketeers.
People, Paypal has horrible customer service for sure. I know, I've been there. But at least they don't fuck you, and that's why they are the best on the market now.