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Just received this e-mail from DutchBilling doesn't look good for them
Dear DutchBilling customer,
As you have noticed, we have suspended our last payment
run of April 28th for all merchants and Resellers
of DutchBilling.
This is a result of a thorough investigation within our
Risk Department that has found a large number of
credit card transactions to be fraudulent. Since DutchBilling
is providing transactions for Internet websites,
fraud does occur, since authenticity of the credit card
holder is not fully possible.
In the last couple of weeks we have seen an huge
increase of fraudulent transactions, particulary made
through DutchBilling resellers. To protect the business
interest of all persons involved and our valuable banking
relationships, we have decided to suspend all payments
to our customers.
However, after internal discussions, the management of
DutchBilling has decided the following:
1. All merchants and linkers will be paid on Monday
May 5th, which includes the payment of April 28th.
Merchants and linkers will continue to receive their
weekly payments. Merchants and linkers can opt
for biweekly or for a payment every 4 weeks in the
DutchBilling Control Center.
2. All resellers will be paid every four weeks from
now on. The first reseller payment will be on
Monday May 19th. Resellers cannot opt for
a weekly or biweekly payment.
3. Starting June 1st 2003, we will introduce a new
rate system, due to the increase of cost of
anti-fraud solutions for our merchants.
DutchBilling will increase the staff of its
Risk Management department in the month
of May.
a. The new rate will be 18% for all credit card
and check transactions;
b. The holdback will be increased to 20% of
the total volume, to be paid back 26 weeks
as a rolling reserve;
c. The maximum percentage of resellers will
be lowered to 50%.
4. Starting June 1st 2003, we will introduce a new
reseller system where the merchant will be liable
for the resellers payments, chargebacks and
refunds.
That means that the merchant can approve
or decline resellers through the DutchBilling
Control Center. Once the reseller is approved
by the merchant, the reseller gets paid by
DutchBilling.
However, negative invoices from resellers (due
to excessive amount of chargebacks and credits)
will be directly deducted from the merchants
payments or holdback.
If you have any questions about these decisions,
please don't hesitate to contact us.
We appreciate your business,
Yours Truly
DutchBilling Management
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