Merchant accounts vs. IPSP billing

01-09-2005

Actually I have always wondered something about aggragators and I have never seen it addressed anywhere. It seems when they go tits up, all the reserve funds disappear. They claim the banks have siezed them or visa has dumped on them. Whatever!

Would it not seem like good business practice that those funds should be held in escrow to protect all involved in the event of disaster? However, it seems they are used as working capital and when the shit hits the fan, they disappear and the customers are screwed out of their hard earned profits. I may be wrong about this....legal disclaimer...but very few ever see those funds again.

Maybe someone from an aggragator could explain what exactly happens to the rolling reserve that is supposedly to be used as charge back protection. Or anyone else who has any insite into the inner workings of IPSP's.

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01-09-2005	#10
rhymer11 Guest Posts: n/a	Actually I have always wondered something about aggragators and I have never seen it addressed anywhere. It seems when they go tits up, all the reserve funds disappear. They claim the banks have siezed them or visa has dumped on them. Whatever! Would it not seem like good business practice that those funds should be held in escrow to protect all involved in the event of disaster? However, it seems they are used as working capital and when the shit hits the fan, they disappear and the customers are screwed out of their hard earned profits. I may be wrong about this....legal disclaimer...but very few ever see those funds again. Maybe someone from an aggragator could explain what exactly happens to the rolling reserve that is supposedly to be used as charge back protection. Or anyone else who has any insite into the inner workings of IPSP's.