Online services would require you to upload your vids first, then download them back once encoded. That's a lot of bandwidth.
I used to know one which would convert formats (ie: wmv to mp4) but nothing about downscaling resolution. Encoding uses a lot of CPU usage (and time), nobody will do it for free.
Get yourself a Linux server and install FFmpeg: https://trac.ffmpeg.org/wiki/Scaling (resizing) with ffmpeg
Why not just rent a Windows RDP VPS? There are some out there, you can use encoding GUI/CLI in there as well as other apps like web browsers and upload/download managers.
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