Quote:
Originally posted by goBigtime
I think this thread should be bumped every time we read something wacky that an IPSP is doing (or hasn't done) with their (our) businesses.
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I've actually come to understand that the IPSP's have a conflict of interest so to speak. And, while it is their responsibility no doubt, it's not totally their fault.
The only way the IPSP's can make money with that 11-15 percent (or lower) fee is by becoming partners with adult websites. That also means they have to generate huge volume.
Their big clients --- who generate that huge volume --- want the sleazy billing tactics. There's more money in it for the short term --- and there was probably even more pressure to do it once recession hit the biz.
The IPSP's go along and, even promote it, because they also make more money with it. In a way, it was necessary for their survival.
The problem, of course, is that it also gets them into trouble with Visa and Mastercard. But since the financial incentive lies with the aggressive billing tactics --- not compliance, which is very expensive --- they tend to ignore the Visa/Mastercard warnings until it is too late.
And, of course, the big clients who initally pushed the sleazy billing tactics will probably turn on the IPSP's in a heartbeat once Visa/Mastercard cuts them off and they lose those rebills, among other things.
In a way, it's a lose/lose situation for the IPSP's. That's not to say it's an excuse for their behavior. Afterall, it's their business on the line and they should have been paying more attention.
But it's easy to see how this could have happened.