Quote:
Originally posted by assistant27
Another q. regarding "Factoring".
Are billers not properly registered with visa and mc, ilegal?
This is called factoring or money laundering. People come in
contact with online merchants all the time who got "Ripped
Off" from another company they used to process their credit
cards. Online merchant never got paid, but this company still continue to process credit cards of their "clients" ex members on paysite).
example: oxbill.com , which was debated this week.
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Not illegalas in against the law. But certainly out of Visa / MC compliance and they are therefore likely to be terminated.
I think the term you are looking for here is credit card laundering, which is a form of money laundering. Bottom line: Only Merchants can touch the money. We at EPOCH learned a painful lesson on this very subject 4 years ago. We are in litigation today as a result and suffered a loss of millions and reputaion in the process. We did however pay back every single penny.