Nochex
Encyclopedia
Based in the United Kingdom
, Nochex is a private company with twenty four employees that provides online payment services. Nochex caters primarily to small and medium sized businesses.
standard designed to reduce the risk of fraudulent card holder not present
transactions, and are PCI compliant. Nochex does not require the account holder to procure a bank merchant account
or payment gateway
.
The personal account allows individuals to send money to other Nochex account holders. Money may also be sent to people without an account, although the recipient must register with Nochex before withdrawing funds. The personal account carries a limit on the balance of £90.
A seller account can be used to process payments up to £100 that originate from a UK registered credit or debit card. There is no cost to set up a seller account and no monthly fees, although an initial fee may be charged for verifying the holder’s credit
or debit
card (up to £1.99). There is a fee for all transactions.
The merchant account includes additional services such as telephone support from an account manager. Compared to other account services offered by Nochex, with a merchant account a vendor can accept larger payments, and accept payments from registered international credit cards. Merchant account holders are required to maintain a minimum balance in their account to cover for the risk of any chargebacks. This amount can build up from initial trading and is based on account activity. After the account is closed, the retaining balance will be returned in full, providing that no chargebacks occur after the account is closed. There are no monthly fees associated with merchant accounts, although a one time set up fee does apply. Transaction fees are tiered.
, EROL
, Zen Cart
, CubeCart, and Romancart. Nochex is also integrated into CQout
, eBid
and other smaller auction sites.
Nochex is an acceptable method of payment on eBay
, although it is not fully integrated into the eBay
system.
, credit card companies are required to refund payments made by customers who failed to receive goods or services if the purchase was made directly from the retailer. Purchases made through online payment services such as Nochex involve three parties—the consumer pays the online payment service for credits or e-money
, and the online payment service makes the purchase for the consumer from the retailer. The online payment service is thus legally only responsible for handling the transaction, and not for resolving disputes or providing refunds. Some online payment services do in fact provide refunds in the case of disputes, but Nochex has been cited as a company that does not honor such requests. Nochex, for its part, has asserted that it attempts to verify the credentials of its customers, and instructs consumers to attempt to settle any disputes by contacting the retailer directly or by reporting the problem to law enforcement. The Office of Fair Trading
has stated that the current law is unclear and they intend to pursue changes that will provide consumers with additional protections.
For a short period in 2007 Nochex was cited for adding transaction fees to online purchases without notifying customers. Nochex claimed that these charges were the result of either MasterCard
or the customer's bank treating these transactions as cash advances. MasterCard asserted that they were not responsible for this coding, and at least one bank in 2007 stated it was their policy to treat online purchase through some online payments services such as Nochex as cash advances. In 2007 Nochex put a warning on their website notifying customers that some banks will add these fees. However since 2007 there have been no reported incidents of cash advance fees being levied on consumers using the Nochex service.
In July 2006 eBay
announced that Nochex would no longer be allowed as a method of payment on their web site, but reversed their decision less than a week later and reinstated Nochex as an acceptable form of payment.
In 2004, Nochex introduced a fee to seller and personal accounts which was levied against accounts that had been inactive for a period greater than twelve months. Inactive customers were not notified of this newly introduced fee. Where the account balance permitted, Nochex applied this charge at the rate of £2.00 per quarter. In 2006, Nochex revised this fee to £5.00 per quarter. When an account has no funds, Nochex does not charge this fee, and inactive accounts can be reactivated again at any time with payment of a dormant account fee.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, Nochex is a private company with twenty four employees that provides online payment services. Nochex caters primarily to small and medium sized businesses.
Account types
Nochex offers three types of account: personal, seller and merchant. The most common accounts are the seller and merchant accounts, which allow online payments to be processed through a sellers’ website. All payments made via Nochex support the 3D Secure XMLXML
Extensible Markup Language is a set of rules for encoding documents in machine-readable form. It is defined in the XML 1.0 Specification produced by the W3C, and several other related specifications, all gratis open standards....
standard designed to reduce the risk of fraudulent card holder not present
Credit card fraud
Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction. The purpose may be to obtain goods without paying, or to obtain unauthorized funds from an account. Credit card fraud is also...
transactions, and are PCI compliant. Nochex does not require the account holder to procure a bank merchant account
Merchant account
A merchant account is a type of bank account that allows businesses to accept payments by debit or credit cards. A merchant account is established under an agreement between an acceptor and a merchant acquiring bank for the settlement of credit card and/or debit card transactions...
or payment gateway
Payment gateway
A payment gateway is an e-commerce application service provider service that authorizes payments for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar. It is the equivalent of a physical point of sale terminal located in most retail outlets...
.
The personal account allows individuals to send money to other Nochex account holders. Money may also be sent to people without an account, although the recipient must register with Nochex before withdrawing funds. The personal account carries a limit on the balance of £90.
A seller account can be used to process payments up to £100 that originate from a UK registered credit or debit card. There is no cost to set up a seller account and no monthly fees, although an initial fee may be charged for verifying the holder’s credit
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
or debit
Debit card
A debit card is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution...
card (up to £1.99). There is a fee for all transactions.
The merchant account includes additional services such as telephone support from an account manager. Compared to other account services offered by Nochex, with a merchant account a vendor can accept larger payments, and accept payments from registered international credit cards. Merchant account holders are required to maintain a minimum balance in their account to cover for the risk of any chargebacks. This amount can build up from initial trading and is based on account activity. After the account is closed, the retaining balance will be returned in full, providing that no chargebacks occur after the account is closed. There are no monthly fees associated with merchant accounts, although a one time set up fee does apply. Transaction fees are tiered.
On line shopping carts and auctions
Nochex is integrated into over fifty shopping carts and programmes, including: BigCommerce, osCommerceOsCommerce
osCommerce is an e-commerce and online store-management software program. It can be used on any web server that has PHP and MySQL installed. It is available as free software under the GNU General Public License.-History:...
, EROL
Erol
Erol is a Turkish given name or surname meaning "brave".This name is shared by the following people:-Other people:* Erol Gelenbe, Turkish academic* Erol Güngör, Turkish sociologist* Erol Kaymak, Turkish Cypriot academic* Erol Onaran, Founder of Erol's...
, Zen Cart
Zen Cart
Zen Cart is an online store management system. It is PHP-based, using a MySQL database and HTML components. Support is provided for numerous languages and currencies, and it is freely available under the GNU General Public License....
, CubeCart, and Romancart. Nochex is also integrated into CQout
CQout
CQout is an online auction company which is based in the UK and trades nationally in over 80 countries.CQout was launched in 1999 by three London Business School Graduates, namely Tony Newton, founder and creative director, Siamak Bashi, now the company's CEO, and Mike Rees.By number of items...
, eBid
EBid
eBid is an online auction website founded in December 1998. eBid operates in twenty-one countries where it allows sellers, United Kingdom, United States of America, Canada, Australia , Ireland, Belgium, Austria, Italy, France, Germany, Spain, Netherlands, Denmark, Hong Kong, India, Norway, New...
and other smaller auction sites.
Nochex is an acceptable method of payment on eBay
EBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
, although it is not fully integrated into the eBay
EBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
system.
Controversy
Under section 75 of the United Kingdom's Consumer Credit ActConsumer Credit Act
Consumer Credit Act may refer to:*Consumer Credit Act 1974*Consumer Credit Act 2006*Consumer Credit Protection Act...
, credit card companies are required to refund payments made by customers who failed to receive goods or services if the purchase was made directly from the retailer. Purchases made through online payment services such as Nochex involve three parties—the consumer pays the online payment service for credits or e-money
Electronic money
Electronic money is money or scrip that is only exchanged electronically. Typically, this involves the use of computer networks, the internet and digital stored value systems...
, and the online payment service makes the purchase for the consumer from the retailer. The online payment service is thus legally only responsible for handling the transaction, and not for resolving disputes or providing refunds. Some online payment services do in fact provide refunds in the case of disputes, but Nochex has been cited as a company that does not honor such requests. Nochex, for its part, has asserted that it attempts to verify the credentials of its customers, and instructs consumers to attempt to settle any disputes by contacting the retailer directly or by reporting the problem to law enforcement. The Office of Fair Trading
Office of Fair Trading
The Office of Fair Trading is a not-for-profit and non-ministerial government department of the United Kingdom, established by the Fair Trading Act 1973, which enforces both consumer protection and competition law, acting as the UK's economic regulator...
has stated that the current law is unclear and they intend to pursue changes that will provide consumers with additional protections.
For a short period in 2007 Nochex was cited for adding transaction fees to online purchases without notifying customers. Nochex claimed that these charges were the result of either MasterCard
MasterCard
Mastercard Incorporated or MasterCard Worldwide is an American multinational financial services corporation with its headquarters in the MasterCard International Global Headquarters, Purchase, Harrison, New York, United States...
or the customer's bank treating these transactions as cash advances. MasterCard asserted that they were not responsible for this coding, and at least one bank in 2007 stated it was their policy to treat online purchase through some online payments services such as Nochex as cash advances. In 2007 Nochex put a warning on their website notifying customers that some banks will add these fees. However since 2007 there have been no reported incidents of cash advance fees being levied on consumers using the Nochex service.
In July 2006 eBay
EBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
announced that Nochex would no longer be allowed as a method of payment on their web site, but reversed their decision less than a week later and reinstated Nochex as an acceptable form of payment.
In 2004, Nochex introduced a fee to seller and personal accounts which was levied against accounts that had been inactive for a period greater than twelve months. Inactive customers were not notified of this newly introduced fee. Where the account balance permitted, Nochex applied this charge at the rate of £2.00 per quarter. In 2006, Nochex revised this fee to £5.00 per quarter. When an account has no funds, Nochex does not charge this fee, and inactive accounts can be reactivated again at any time with payment of a dormant account fee.