Does Anyone Check Processors?

[Hell Puppy]

Originally Posted by RawAlex

HP, normally I would say yes, but I would think that it would be more specific to programs having programs with chargebacks, and not an overall effect. I see an overall effect that suggests that the processors may be doing it on a much more global scale.

That's exactly what I meant.

Again, I am no expert on the behind the scenes of processing, but here's how I think it works.

PSP's basically factor their merchant accounts legally. Most have multiple accounts, but in this day and age there's only so many banks willing to service adult.

So they need to spread around all of those charges (and subsequent charge backs) from all of the sites and programs they serve to that handful of merchant accounts. So again, I'm thinking if those key merchant accounts start to creep up anywhere close to that 1% mark the risk tolerance goes down, scrub gets turned up. The threshold is likely extremely low given how precious the merchant accounts are.

That's not dishonest or unethical, that's just good business.

It's still a frustration point for me. So far I've always opted to outsource the hassles of dealing with the merchant account to the PSPs, and my chargebacks are next to nothing. My transactions would be used to "wash" away some of the guys who do things I'd never do like prechecked cross sales. But yet if my theory above is correct, my sales suffer due to them when scrub gets turned up.