Quote:
Originally posted by Chris Mallick
Mitch:
Verified by Visa (?V by V?) gives us economic protection against chargebacks starting April 2003 if we are compliant and have installed the Merchant Plug In. We have. At that point, we have to attempt to verify. If we are the only one ?playing? so to speak, of the 3 parties involved (Merchant / Cardholder / Issuing Banks, through their Access Control Server) we still get the protection. Again, if the Merchant is compliant and attempts, the protection is there.
I think that Issuing Banks will require their cardholders to register sooner rather than later for this for 2 important reasons:
1. The Issuer can?t make the Merchant eat the charge if they are not V by V compliant.
2. Issuers can charge cardholders $2 or more per year for the ?service?. Actually they can force feed the charge.
AOL is promoting V by V. Wells Fargo, Chase, BofA, MBNA; all of the big Issuers are starting a push. The last time I checked, 10 million US cardholders were registered, a drop in the bucket, but better than nothing. In the EU this has been working for about 9 months and the Online Merchants are having great success.
So to my understanding the economics will drive Issuers to register, thus dragging cardholders. Then it is up to Merchants to spend the money, certify and use V by V. EPOCH is all over this. We think it will save our Webmasters millions a year.
Again, we also think that the ?It wasn?t me?? friendly fraud will go away for a time and then it will migrate, as the cardholders will likely figure other ways around the requirement to pay. EPOCH is working on a solution for that as well.
Chris
CEO EPOCH
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Chris,
Netbilling also will be live with this in April and we are sure it will be a success to a certain degree. However, we find many more chargebacks come from rebilling than initial signups, and this will not protect the merchant from rebilling chargebacks when all he must say is "I cancelled" or "The site was not as promised". This solution will be much more viable for shipped products than recurring membership based web site, don't you agree?
"Your "ranting" is right on target. I agree 100%. We need Visa and Mastercard and anyone in this biz who does not think so, is dead wrong in my opinion. Amex is still alive and kicking after throwing porn out on it's ass!
Mastercard will be right behind Visa with the registration fee as they have been for over a year for merchants with their own merchant accounts.
Mitch
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Mitch Farber
CEO - NETbilling, Inc.
Email / Phone: 888-357-8166 / 661-252-2456
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