Quote:
Originally Posted by sltr
i'm a client of netbilling for 5 years now. i don't see the relation b/w the current sub-prime lending fiasco and getting my merchant account yanked.
i don't see why a bank would "pull back" from one revenue generating center due to another's lack of revenue generation.
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After the babenet problem I mentioned years ago, many US/foreign banks were reluctant to issue high risk adult accounts. Humbolt and a handful of other US banks did, and offshore banks did, but they had a vigorous background/credit check and required huge volumes in order to use them. As a result, very few programs were using merchant accounts, most used the IPSPs. The programs that had to use use their own merchant accounts were generally the ones who ran crossells, multiple prechecks, etc and who knew how to manage the risk with Visa/MC, round robin transactions under the chargeback minimums and recycle accounts. They would basically have risky, high- chargeback transactions coming through, but they were experts in manipulating the process in order to keep that fact under the various radars.
In the past 9 months companies like pimproll, naughtyamerica, platinumbucks, datinggold, mediumpimpin, AWE, meatcash, occcash, ragecash have moved to their own merchant account. Im not saying they moved for only shady reasons, as there are other advantages, like lower fees and having direct access to the credit card data. But with this new option, you have much more latitude as well with things processors would prohibit. And you always have a few guys that push things all the way past the limits.
Imo the recent moves have affected epoch much more than ccbill, because of their smaller portfolio of large programs
Good read below about xpics/heartland payments systems that will show you the environment in the past
http://www.riverfronttimes.com/2000-...n-in-the-usa/1