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RedEye · 12-06-2003

You see, the situation is very interesting.

Look at facts:
Out of 8 or 9 billing companies which were closed in August more than 6 have been operating with a merchant account which didnt even belong to them. Speak about rules!

None of those companies stayed even close to chargeback regulations or comply with even FUCKING SIMPLE VISA AIS (EU) /CISP (USA) security recommendations (which require 2 firewalls and 2 separate servers for accepting cards).

By the way , You got to realise one very interesting thing, according to the technology or processing it is impossible to calculate chargebacks for credit card associations in relation to the sales period. Therefore chargebacks are applied to the exact month when they actually came.

For example if You have made 100 000$ in December out of which You got
2% of chargebacks originating from these sales, however chargebacks mostly come in 3 monthes. So You get them in February. If in February Your volume is 200 000$ You are looking only at 1% of chargebacks. That's probably the reason of PSW conflict with ECB-Leumi. I am very sorry if I am wrong, it's just pure guessing, but I will NOT be suprised if I am correct, ECB guys realised that the real chargeback ratio of PSW is over 2% or more however they kept growing volume so the actual chargeback ratio on paper indeed stayed below allowed by the contract regulations. What were they supposed to do then?

So look what happens:
VISA and MC are not able to close down completely third party billers because that is very difficult to do with all the publicity which obviously is going to be a living hell and....VISA technically is not able to DISCRIMINATE in business.

Which means that if VISA closes down Ibill it is supposed to close down 2Checkout.com as well. Try closing THEM down, they dont do adult You know.

If VISA does not close down Ibill, CCBill and Epoch than technically others including new companies are supposed to be able to run billing companies as well.

So what VISA does is the only thing possible - slowly making the rules worse and worse in order to force clients out of them without being prosecuted immediately for monopoly or whatever else.

Because as soon as normal clients will go looking for merchant accounts banks themselves will evolve cause these clients are good enough to work with.
And that is exactly what is going on now.

Hope I was helpfull and sorry for my english.
:-)

12-06-2003	#18
RedEye Members Join Date: Oct 2003 Posts: 42	You see, the situation is very interesting. Look at facts: Out of 8 or 9 billing companies which were closed in August more than 6 have been operating with a merchant account which didnt even belong to them. Speak about rules! None of those companies stayed even close to chargeback regulations or comply with even FUCKING SIMPLE VISA AIS (EU) /CISP (USA) security recommendations (which require 2 firewalls and 2 separate servers for accepting cards). By the way , You got to realise one very interesting thing, according to the technology or processing it is impossible to calculate chargebacks for credit card associations in relation to the sales period. Therefore chargebacks are applied to the exact month when they actually came. For example if You have made 100 000$ in December out of which You got 2% of chargebacks originating from these sales, however chargebacks mostly come in 3 monthes. So You get them in February. If in February Your volume is 200 000$ You are looking only at 1% of chargebacks. That's probably the reason of PSW conflict with ECB-Leumi. I am very sorry if I am wrong, it's just pure guessing, but I will NOT be suprised if I am correct, ECB guys realised that the real chargeback ratio of PSW is over 2% or more however they kept growing volume so the actual chargeback ratio on paper indeed stayed below allowed by the contract regulations. What were they supposed to do then? So look what happens: VISA and MC are not able to close down completely third party billers because that is very difficult to do with all the publicity which obviously is going to be a living hell and....VISA technically is not able to DISCRIMINATE in business. Which means that if VISA closes down Ibill it is supposed to close down 2Checkout.com as well. Try closing THEM down, they dont do adult You know. If VISA does not close down Ibill, CCBill and Epoch than technically others including new companies are supposed to be able to run billing companies as well. So what VISA does is the only thing possible - slowly making the rules worse and worse in order to force clients out of them without being prosecuted immediately for monopoly or whatever else. Because as soon as normal clients will go looking for merchant accounts banks themselves will evolve cause these clients are good enough to work with. And that is exactly what is going on now. Hope I was helpfull and sorry for my english. :-)