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Originally Posted by 365Billing-MarkS
To respond directly to the question regarding our banking relationship, our merchant acquirer has not, in fact, decided to exit the high risk space. Our acquirer is in the process of moving its entire high risk portfolio to a sponsor bank on another BIN, with whom they have an existing and long-standing relationship, for reasons completely unrelated to 365. This transition has been planned over many months and is being executed, and as we expected it to be completely transparent to our customers, we saw no reason to inform them or the market of the change. This has and will not have any affect on our ability to take transactions for US clients.
Simply stated: Our US acquirer will not change. Our US processor will not change. The links we have in place for the physical processing of the transactions will not change. The only thing that is changing is the BIN under which our acquirer is processing. If you are one of our customers and would like more detail on this I would encourage you to call me.
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Mark,
My icq has been lit up like a Christmas tree for two days now with links to this thread and the one yesterday. After the Phillipines incident in August, some people are very confused as to how banks handle business, so maybe this will give you a chance to clarify the situation, if you like. I certainly have no knowledge of your particulars, so I don't feel the need to speculate when you're here and can give some solid answers.
1. What do you mean by acquirer? This is typically your bank, however your statement above mentions your acquirer moving to another banks BIN. Perhaps you can define acquirer for everyone and clear up the confusion.
2. Can you define processor as well? In saying that the bank is changing but the acquirer is not, then saying that the BIN is moving to another bank, but the processor is not changing, there is some confusion here as well. Will Columbus B&T continue to be your sponsor bank for your IPSP business? Or is the other, as yet unannounced, IPSP bank approval going to take your business instead? (the last half of the paragraph is my own question, not one from icq)
3. While this process is happening, is there any possibility that you may be inadverdently cross border acquiring? Are your US clients' transactions still being routed through to a US bank or are they being temporarily sent to a non-US bank?
4. And last but not least, given the situation in the Phillipines, did you have prior approval from Visa to move to this new bank, or are you still in the process of arranging approval? Many of the CNP/Bankard accounts were caught completely unaware of any issues until they were in a situation where time became their enemy, since CNP/Bankard assumed they would receive approval from Visa to re-arrange the existing business and then were shocked when they did not.
Hope this gives you the chance to clarify for everyone. I think it's rather sad here that RonC is being called a liar and people are saying he's trying hurt your reputation; I've known Ron and family for many years and that's not something I've ever seen from them. Ron's a good guy, running a very solid business, and he believes in telling it like he knows it to be. You saying that your bank is changing, but your acquirer/processor is not, leads one to believe that Ron is indeed correct in what he is saying. I'm not going to say anything more until you've had a chance to reply at this point.