Quote:
Originally Posted by Mutt
that's a little dumb on your part - when a large program with deeper pockets loses their merchant account they CAN and SHOULD reach into their pockets and make settlements with their affiliates for the lost rebills. The affiliate should NOT be assuming the risk for the program owner's processing. A smaller program doesn't have 50-100K in cash if they lose their merchant account to make good with affiliates.
merchant accounts are lost all the time - you dont have a banking relationship wth Netbilling, your relationship is with the merchant bank - you have no clue how long they will stay processing high risk adult and you will have no backup plan in place other than running to Netbilling hoping and praying they can place you with another bank.
CCBILL and Epoch have over 10 years of experience handling merchant accounts - and I am assuming contingency plans for worst case scenarios - guy doing 10K a month in sales has ZERO experience with his own merchant account and no contingency plan.
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Mutt,
Don't assume too much my friend. Look at IBill for example. Big companies die.
and assuming that a small company couldn't have "contingency capabilities" (as you put it), relative to a large company, I believe to be inaccurate.
The money needed would be relative to the size of the company.
The main expense to keep things going and to save face with your affiliates (since that's the main point here) is:
a:the revshare commissions being paid to affiliates on active members
and/or
b:PPS programs would need the money to cover affiliate payouts for the last current pay period.
So a big company would need more $ and a smaller less $.
big insurance policy - little insurance policy
Cheers,
BV