VISA new chargeback/credit ratios

[*KK*]

Originally posted by Marc De@Jul 2 2003, 05:26 AM
cross sells chargeback LESS than normal memberships - that is NOT the issue.

My concern is this - anyone doing substantial volume has a HELLUVA time keeping their c/b's below 1% and if you aren't doing substantial volume its much easier to stay below 1%. With that said, if the 'big guys' fall then who do you think will get their volume? The smaller programs still under 1% ? Can those smaller programs pick up the tab for a huge influx in new sign ups? Can they increase their volume rapidly and then keep their c/b's below 1% down the road?

I don't see it, no. Someone who's able to do a few hundred, i.e. less than 500 joins a day without cross sells, especially if they've never done more, is not going to be able to manage 1000 a day any better, actually my money is on worse, than someone who's been managing 1000+ a day for at least a year.

That cycle will be a simple one -- someone ramps up, stays there for a couple months and boom! they're done and gone.

Just being a big guy won't get you through this one no -- but having been a big guy for some time will probably give you insight into the situation and thoughts of how to manage the business into longer term profitability.

ALL programs, tho, no matter how big or small, will be affected by this. Between the trickle down effect and a few other factors, no one is going to be immune, except maybe the little guy doing 10 joins a day on his own merchant account.