Alternatives to ShareIt/MyCommerce/Digital River

[Ilmar]

Refunds worked last week I refunded like 1500+ orders and it was confirmed by customers.

If you've refunded september orders this month then I assume the october account in your DR control panel is showing a negative amount?

I don't know if there's a mechanism in place where they'll take that october negative from what they owe you. So I wonder if they'll chase you for payment of the october negative value even though they owe you for the previous 3 months.

What I mean is that if DR goes into administration then they won't pay the 3 months they owe you. But they will demand you pay them back for the october loss. Administrators won't balance one against the other.

We apologize for the extended delay. We are working with our internal team to resolve this issue and we hope to have an update for you soon. We are still waiting for our Q3 payment. Rest assured, we will get back yo you shortly after we have received our payments with late payment interest of 12.5%.

FYI It is +/- 0 there is no additional fees in refund (chargeback fee is different)

[barteko]

Someone who terminated the account wrote that they said they will hold back pay out for 180 days, which is 6 months...

I was one of the guys. Yes, when I wrote an account termination request back in September, they responded that they will pay for July on Sept. 30th, but for August and September they will withhold the money for 180 days, backing this by the article 5e of the agreement 6.1. Imho that's a bit stretchy. Also it's nowhere written that they have 180 days, nor that number can be defended by anything - like chargeback period, etc.

That's what I received on Sept. 30th:

Your July Sales payment is now expected to be release today (September 30). If you are now closing your account now, the payment for August and September will still be on hold for 180 days, unfortunately this is Digital River policy and we regret that any adjustment would be done.

Policy...

[IaES]

Your July Sales payment is now expected to be release today (September 30). If you are now closing your account now, the payment for August and September will still be on hold for 180 days, unfortunately this is Digital River policy and we regret that any adjustment would be done.

I assume they "did not" release your july payment?

Personally I would be happy if they withheld payment for 180 days as long as I actually got it eventually. As it is though I fear we're not going to get anything.

[Astronomous]

Seems refunding still works, but not sure if customer receives any money back. However, the negative refund amounts of previous months orders go to current month statement that becomes one big negative. I guess they may try to charge us this amount even they have not paid out collected funds from previous months.

[sft234]

What I don't get: why can't they pay us the money (after taking their percentage for service) WE make flow to them through OUR customers? The money is flowing in through OUR sales (so the money is there, not missing) and they keep it for themselves? That's a criminal act. Why aren't authorities acting to stop these criminals? Is germany a state without law?

[MikePhilip]

Does anyone know what prices use Cleverbridge?

[sslsound]

Does anyone know what prices use Cleverbridge?

About the same for them as we paid for MyCommerce/Digital River. Better product overall and more features for things like subscription management and partner programs.

[7tltd]

Is germany a state without law?

Depends on in which "Club" you are. Not possible to discuss this in public. Just remind you how you get treated by the fiscal agency if you are a little worker and how you get treated if you are a ...

DR GmbH filled almost zero earnings over the last 10 years! See:
https://www.northdata.com/Digital+River ... +HRB+56188

[DrOli]

One additional company that switched to PayPro Global as they were fastest to respond and activate account.

Transition took few hours to create integration via WebHooks but was straight forward (incl. IP whitelisting and usage of hash/secret). Account was immediatelly opened and ready to sell after products were created. Yesterday had call with sales team to check if all is ok. First orders went through. In just less than 10h, we are back to business (most time spent on integration as it was totally new to us; we used key generator with DR and now had to switch to WebHooks).

Btw. they are charging 4.9% + USD1.

[sft234]

Let's report Digital River to our tax authorities. If they do not pay us the income of half a year this also is stolen taxes for the tax authorities. We anyway will have to explain why we don't report any income from July 15 on. I guess tax authorities have greater legal means than we do.

[grujicd]

I went through the latest public financial statement for DR Gmbh, and it's for 2022. Btw. who would thought that Germany is behind Serbia in this area, since we already have public reports for all companies for 2023. Back to topic at hand. Interesting numbers. All numbers are in EUR and rounded a bit. Report is here, and chrome's translate to english works great:

https://www.unternehmensregister.de/ure ... d=34415885

Sales revenue - 19,7M (I believe this represents only their margin as that is their revenue, not full amount of sales)
Currency conversions income - 300k
Salaries with social security - 5M (not 100% sure what should be summed up here)
Other operating expenses - 11M (this includes 5M credit card fees, but also 3M group allocation)
Earnings after taxes - 6M
Profit transferred - 6M (I just found that profits were transferred to Digital River Holding GmbH, i.e. not directly to DR USA. Didn't know about this holding company until now)
Number of employees - 22 (35 in 2021)

So Digital RIver Gmbh seems rather profitable. Here comes the troubling part:

11. Liabilities to affiliated companies
Liabilities to affiliated companies include liabilities to the shareholder in the amount of EUR 31,222 thousand (previous year: EUR 21,229 thousand). These liabilities result primarily from tax prepayments for Digital River Holding GmbH and liabilities from profit transfers.

I'm not sure how this increased by 10M?

The most interesting part:

14. Contingent liabilities
Effective June 1, 2021, Digital River Inc., Delaware/USA, entered into a new financing agreement for USD 100 million with Cerberus Business Finance Agency LLC, USA, as administrative agent and collateral manager.The debt held by Digital River Inc. matures on January 31, 2025. Digital River GmbH acts as guarantor. No call is expected on Digital River GmbH; management assumes that the Group's debt will be successfully refinanced before the debt matures in January 2025.

100M of debt comes to term on January 31, 2025. DR Gmbh is guarantor.

Are they trying to hold as much money as possible until this date? I should try again to understand new agreement between Cerberus and DR, the one from August, available on gov UK site.

[sft234]

I went through the latest public financial statement for DR Gmbh, and it's for 2022. Btw. who would thought that Germany is behind Serbia in this area, since we already have public reports for all companies for 2023. Back to topic at hand. Interesting numbers. All numbers are in EUR and rounded a bit. Report is here, and chrome's translate to english works great:

https://www.unternehmensregister.de/ure ... d=34415885

Sales revenue - 19,7M (I believe this represents only their margin as that is their revenue, not full amount of sales)
Currency conversions income - 300k
Salaries with social security - 5M (not 100% sure what should be summed up here)
Other operating expenses - 11M (this includes 5M credit card fees, but also 3M group allocation)
Earnings after taxes - 6M
Profit transferred - 6M (I just found that profits were transferred to Digital River Holding GmbH, i.e. not directly to DR USA. Didn't know about this holding company until now)
Number of employees - 22 (35 in 2021)

So Digital RIver Gmbh seems rather profitable. Here comes the troubling part:

11. Liabilities to affiliated companies
Liabilities to affiliated companies include liabilities to the shareholder in the amount of EUR 31,222 thousand (previous year: EUR 21,229 thousand). These liabilities result primarily from tax prepayments for Digital River Holding GmbH and liabilities from profit transfers.

I'm not sure how this increased by 10M?

The most interesting part:

14. Contingent liabilities
Effective June 1, 2021, Digital River Inc., Delaware/USA, entered into a new financing agreement for USD 100 million with Cerberus Business Finance Agency LLC, USA, as administrative agent and collateral manager.The debt held by Digital River Inc. matures on January 31, 2025. Digital River GmbH acts as guarantor. No call is expected on Digital River GmbH; management assumes that the Group's debt will be successfully refinanced before the debt matures in January 2025.

100M of debt comes to term on January 31, 2025. DR Gmbh is guarantor.

Are they trying to hold as much money as possible until this date? I should try again to understand new agreement between Cerberus and DR, the one from August, available on gov UK site.

Interesting. But what they owe to whome is their business.
They HAVE the money from the customers that purchased OUR products via US.
That's NOT missing money. It's there. It was paied to them.

On 30.9.2024 we received:

MyCommerce billing in USD for the period until AUG 31, 2024

The total balance of USD ****** will be paid according to the terms of your contract. Detailed product reports and an overall report on all products can be found in the control panel under Reporting / Billing.

The mentioned contract:

MyCommerce Master Services Agreement (6.3)
Valid from 16.10.2024 00:00:00

"Digital River will initiate payment of the sum of the Net Purchase Price of those Products for which Digital River processed payment during the Pay Period ... within 30 days of your receipt of the statement through the method of payment you select in the Administration Interface"

So if they don't pay until 30.10.2024 they broke the contract.

Breaking a contract is a crime

[grujicd]

Based on data above, we can now make a napkin calculation on the amount of our money they're holding.

- their yearly margin: 20M

Since their margin depends on order size and includes some currency exchange costs, I took a look at my own sales reports. In my case, effective margin is around 6-7%. Let's say it's 7%. To get 20M of margin:

Total sales per year = 20M/7% = 285M

Total sales per month = 285M /12 = 23,75M

We stopped using their services at different times. Let's say that on average it was mid September. So they are holding 2.5 months of our money.

Total amount MyCommerce is holding against contract terms: 2.5 x 23.75M = 59,4M

Now, this is all based on 2022 financial data. If situation worsened in 2023 and 2024 (and it did), and they lost some big clients (Kaspersky...), this is probably lower. Also, this is just for Digital River Gmbh.

While their monthly expenses are around 1.25M. And majority of these expenses are cc fees. If revenue stopped, their wages are just 400K per month. If they reduced staff, it's even lower.

[yps]

Profit transferred - 6M (I just found that profits were transferred to Digital River Holding GmbH, i.e. not directly to DR USA. Didn't know about this holding company until now)

Digital River GmbH is owned by Digital River Holding GmbH.

Digital River Holding GmbH is owned by Digital River, Inc.

DR GmbH has a "Beherrschungs- and Gewinnabführungsvertrag" with its holding, which means that all profits are transferred automatically to the holding at the end of the year.

Unfortunately the yearly reports for DR Holding are not public. (If your company's value is below a certain threshold, you can opt out of publication.)

About German legislature:

Currently we are totally in the zone of civil law - if they own us money, we can sue them. But there is nothing "illegal" about now paying your debts. So nothing that public prosection would care about.

The only "illegal" thing (in terms of criminal law) would be "Insolvenzverschleppung" (delayed declaration of insolvence). So if the company is bankrupt (or about to be), and management knows it but keeps in trading, they are committing a crime.

[Mike Janney]

100M of debt comes to term on January 31, 2025. DR Gmbh is guarantor.

Are they trying to hold as much money as possible until this date? I should try again to understand new agreement between Cerberus and DR, the one from August, available on gov UK site.

So they are going to pay off this debt with our money. Seems legit.