Quote:
Originally posted by Rand
If you are selling a tangible (shippable) good then you "must" have your own merchant account and you should not mix online transactions with that biz.
But I will tell you, my experience has observed that most WM's start out processing 3rd party and some try their own merchant account. Some, a few, are able to successfully continue their business that way. The vast majority cannot.
Over 90% of those who try to process high risk trans to their own merchant account fail within a year. Then, return to 3rd party.
This possibility has changed. The recent Visa reg's have made "returning" to 3rd party impossible. --Not a good risk model.
If you can make your own merchant account work, great. The costs, however, won't be much different from 3rd party in the long run and you assume all of the risk.
Not to mention that the number of banks willing to take that biz has greatly reduced since November 1, 2002.
I know Mitch will disagree. But, for high-risk digital content, especially in today's market, you need to process with a 3rd party processor.
Knowing how hard this is to be a 3rd party processor, I would say that allowing someone who knows processsing to handle that aspect of your biz is the wisest decision. Focus on building your business and marketing and let an entity with experience in the online processing field keep you out of trouble.
If you don't think it's tough to process trans in this areana, I invite you to think about why people complain about 3rd party processors in the first place. Then, decide if you think you could do any better. If you think you could, you should give us a call. We might have a position for you.
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Rand,
Can you please elaborate on how the risk is different for processing porn using your own merchant vs. using a 3rd party under the new VISA reg.
From what I understand, if you go over a limit with a 3rd party, you get the exact same consequences if you run your own merchant account and go over the limit.
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