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Old 03-03-2003, 09:03 AM  
jcnlv
Registered User
 
Join Date: Aug 2002
Location: Las Vegas
Posts: 55
I am a long time Netbilling client who agrees that processors running their own paysites is NOT ethical. However, I believe they all either do it, or are especially "cozy" with certain paysite operators who may possibly "benefit" from the relationship.

As was suggested in a earlier post, I have periodically "seeded" my Netbilling account with signups from special dedicated email addresses that I check regularly and have set up to filter into special mailboxes.

Paranoid? Absolutely. I have been in this business since 1995 and in those seven years have seen more illegal and unethical business techniques used than I would have ever imagined.

However, I must say I have *never* found any Emails sent to those seeded accounts from any source. Now that does not mean that other people's accounts might not have customer email addresses "borrowed", or even that my accounts addresses could have as well. I do keep a pretty close eye on our business and Netbilling is aware of this.

Any processor who would do such a thing would probably use a "filtering" script to pull the addresses that they "borrow". This script could minimize any chance of them getting caught. They capture a tremendous amount of information on customers, including IP and billing addresses. They could filter out sales from IPs from certain countries, states, service providers etc. In any case they could certainly take the addresses from prior customers, or sites that have closed down.

Processors also have the means to dilute the chargebacks that their own sites (or their affiliates) might generate. This is especially true of 3rd party processors.

The new Visa/MC regulations probably make processor abuse a bit more difficult, however setting up dedicated accounts on an AOL Email address that is hard to track back, using a internet virgin credit card, or the help of a relative or friend, and then monitoring that address for spam is something that I think every site operator would be smart to do.

Just the fact that this is openly discussed, can help make sure that if a problem does exist, that those involved will think twice about the repercussions of being caught red handed by the industry.


JC

http://www.moneyxchange.com
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