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ACPay Mac · 05-30-2003, 02:48 PM

We came up with the idea for AC Pay to provide AC webmasters with an alternative to the several 3rd Party billers for their paysites. We wanted a service that would expand our market penetration to attract non AC webmasters into the AC line of products.

The business was built based on certain assumptions, one of which was that by having the business in the EU and complying with all the Card Association rules there, we could avoid the IPSP rules and gain a competitive advantage which we would pass on to the webmasters.

I have to be cautious here because, as you all well know, our industry is quite competitive and as many detractors as supporters read these boards. In an effort to be forthcoming, we have to keep in mind that, as a business, our competitive edge can be diminished or lost to those who would take every advantage to take it away because of the information we provide.

That being said, the model was intentionally designed as an access management service. In anticipation of an even broader reach of the Association Rules, we formed two AC Pay entities, one in the UK and one here in the US.

Visa USA rules, at the time, had not caught up with EU region and, even to this day, no IPSP registration fees are required. That does not mean that they will not be in the future.

We made a marketing push that fees would not be charged because they were not going to be. As we have seen in the past, the industry quickly follows our lead and quite a few of our competitors made the switch to the EU model. And, as we have seen, some of those who made the switch took with them some of the same business practices that caused the Card Associations to create all the rules in the first place. Again, I want to be very careful here. I am not identifying any one particular company because I can?t. All I can say is that that the Banks with which we deal have expressed to us concerns that some of the merchants that followed in our foot steps have caused some problems. I personally think and feel that our main competitors are in this business for the long haul as are we and, as such, have good business practices to keep the model going. Some don?t and that?s a problem for the industry as a whole. That all being said, we went into this ?no fees? push in good faith and with every intention of having that be our competitive edge.

The problems followed the industry and a few bad apples (don?t know which ones) spoiled the barrel. The Banks and the Card Associations reacted, understandably, and those of us who are ?good apples? and there are a number of us, have to pay the price for those who are not.

The EU region now requires registration but no fees AS OF YET. So, we have to do all the work and go through all the hassle and paperwork of registering the clients. It takes time and it requires a commitment on the part of the client as well.

Perhaps inartfully spoken, but the cost and time really does make a difference from our perspective and to the bottom line.

So, here is the first issue, the $350 fee. It will not be charged to anyone who is already in the system. New clients that sign up, after June 30th, in the EU region will be charged to cover the costs. If and when the EU region starts charging the fees to pass on, we will credit the $350 for anyone who has paid. Until that happens, anyone who has paid the fee will get it back from us once they make $3000 in sales.

The second issue, US clients have to pay the $750 fee that goes to our processor. There is a possibility that the fee can be waived for clients who have already signed up through another processor. We are trying to get this clarified and confirmed through our bank. In the meantime, anyone who pays the fee will get it back from us from future processing based on volume criteria which we are working on right now. You can pay the fee with your Visa or Master Card

The third issue is that we have a US processor for our US clients? transactions and we are adding another in about two weeks.

Fourth, we have a US presence, an EU presence and a Latin Region presence. I would be more than happy to discuss, offline, with anyone, regional requirements of which I am aware.

Fifth, when we launched AC Pay, we had every intention of maintaining the competitive advantage of ?no fees? but we can?t. This all started two weeks ago exactly. We have been scrambling and working and brainstorming ever since to keep the product competitive and profitable. Our decisions did not come without a lot of soul searching. I take responsibility for not preparing my people for the fire storm of reaction. It happened quickly and in response to forces well beyond our control. Our forte is anticipating industry changes and proactively adapting to what we know is coming. The industry moved quickly on this and we moved quickly as well.

Sixth, any client who does not want to process Visa may elect not to and avoid the fees altogether.

Seventh, if you are a US client, not previously registered with another processor, have rebills in the system and you chose not to register through AC Pay, email me.

Eighth, we are in the process of adding several alternative pay models, namely ACH and EU Debit which will be up by July 5th. We are also writing the specs to integrate Xmoola and Web900. They will be on shortly after that.

I am personally concerned with the tone and tenor of the posts. All of us are part of the industry; all of us make our livings from this industry. I take it very seriously. I take it personally. I take blame for the bad and I share credit for the good. But I do not voice my criticism with a mean streak. I am not motivated by jealousy or ego. I am not the messenger of those who are.

Now is not the time for our family and friends to be divisive or derisive. There are many changes coming that will affect our industry in the coming months and if we are a house divided, we are a house that will fall. If we are a house united, we will prevail and rise above it, bruised, battered but intact.

AC Cormac

05-30-2003, 02:48 PM
ACPay Mac Registered User Join Date: Jun 2002 Location: Sherman Oaks, CA Posts: 20	AC Pay and fees We came up with the idea for AC Pay to provide AC webmasters with an alternative to the several 3rd Party billers for their paysites. We wanted a service that would expand our market penetration to attract non AC webmasters into the AC line of products. The business was built based on certain assumptions, one of which was that by having the business in the EU and complying with all the Card Association rules there, we could avoid the IPSP rules and gain a competitive advantage which we would pass on to the webmasters. I have to be cautious here because, as you all well know, our industry is quite competitive and as many detractors as supporters read these boards. In an effort to be forthcoming, we have to keep in mind that, as a business, our competitive edge can be diminished or lost to those who would take every advantage to take it away because of the information we provide. That being said, the model was intentionally designed as an access management service. In anticipation of an even broader reach of the Association Rules, we formed two AC Pay entities, one in the UK and one here in the US. Visa USA rules, at the time, had not caught up with EU region and, even to this day, no IPSP registration fees are required. That does not mean that they will not be in the future. We made a marketing push that fees would not be charged because they were not going to be. As we have seen in the past, the industry quickly follows our lead and quite a few of our competitors made the switch to the EU model. And, as we have seen, some of those who made the switch took with them some of the same business practices that caused the Card Associations to create all the rules in the first place. Again, I want to be very careful here. I am not identifying any one particular company because I can?t. All I can say is that that the Banks with which we deal have expressed to us concerns that some of the merchants that followed in our foot steps have caused some problems. I personally think and feel that our main competitors are in this business for the long haul as are we and, as such, have good business practices to keep the model going. Some don?t and that?s a problem for the industry as a whole. That all being said, we went into this ?no fees? push in good faith and with every intention of having that be our competitive edge. The problems followed the industry and a few bad apples (don?t know which ones) spoiled the barrel. The Banks and the Card Associations reacted, understandably, and those of us who are ?good apples? and there are a number of us, have to pay the price for those who are not. The EU region now requires registration but no fees AS OF YET. So, we have to do all the work and go through all the hassle and paperwork of registering the clients. It takes time and it requires a commitment on the part of the client as well. Perhaps inartfully spoken, but the cost and time really does make a difference from our perspective and to the bottom line. So, here is the first issue, the $350 fee. It will not be charged to anyone who is already in the system. New clients that sign up, after June 30th, in the EU region will be charged to cover the costs. If and when the EU region starts charging the fees to pass on, we will credit the $350 for anyone who has paid. Until that happens, anyone who has paid the fee will get it back from us once they make $3000 in sales. The second issue, US clients have to pay the $750 fee that goes to our processor. There is a possibility that the fee can be waived for clients who have already signed up through another processor. We are trying to get this clarified and confirmed through our bank. In the meantime, anyone who pays the fee will get it back from us from future processing based on volume criteria which we are working on right now. You can pay the fee with your Visa or Master Card The third issue is that we have a US processor for our US clients? transactions and we are adding another in about two weeks. Fourth, we have a US presence, an EU presence and a Latin Region presence. I would be more than happy to discuss, offline, with anyone, regional requirements of which I am aware. Fifth, when we launched AC Pay, we had every intention of maintaining the competitive advantage of ?no fees? but we can?t. This all started two weeks ago exactly. We have been scrambling and working and brainstorming ever since to keep the product competitive and profitable. Our decisions did not come without a lot of soul searching. I take responsibility for not preparing my people for the fire storm of reaction. It happened quickly and in response to forces well beyond our control. Our forte is anticipating industry changes and proactively adapting to what we know is coming. The industry moved quickly on this and we moved quickly as well. Sixth, any client who does not want to process Visa may elect not to and avoid the fees altogether. Seventh, if you are a US client, not previously registered with another processor, have rebills in the system and you chose not to register through AC Pay, email me. Eighth, we are in the process of adding several alternative pay models, namely ACH and EU Debit which will be up by July 5th. We are also writing the specs to integrate Xmoola and Web900. They will be on shortly after that. I am personally concerned with the tone and tenor of the posts. All of us are part of the industry; all of us make our livings from this industry. I take it very seriously. I take it personally. I take blame for the bad and I share credit for the good. But I do not voice my criticism with a mean streak. I am not motivated by jealousy or ego. I am not the messenger of those who are. Now is not the time for our family and friends to be divisive or derisive. There are many changes coming that will affect our industry in the coming months and if we are a house divided, we are a house that will fall. If we are a house united, we will prevail and rise above it, bruised, battered but intact. AC Cormac __________________ ------------------------------- AC Pay™ Payment processing and customer service for your paysite. https://clients.acpay.com/ -------------------------------