Quote:
Originally Posted by TheDA
Extremely unprofessional. You should not be discussing details.
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Yes, agree, this is normally not something we would do (as stated in the response) but we cannot just answer like a robot on a bash like this. Some of the largest "Zombaio Haters" on this board are guys previously being closed because of extremly high fraud levels, and I am talking about 50%+. Then they sign up for a new account, with fake KYC documents, new emails, phones, url's etc and start process again. (talking in general, not pointing out anyone)
If this helps us get rid of them for a bit of badwill, it is worth it.
A lot has happend in the billing industry the last year. During august 2010 the PSD was legally introduced in most countries in EU. And Visa and MasterCard are alert and sending fines for almost anything to the high risk acquirers.
There is only a hand full of adult acquirers and two of them recently stated that they are pulling out from the adult industry. This, together with PSD makes it even more important than before to manage our portfolio, closing merchants that are not playing by the regulations and keeping it clean.
We are scared to be in the position when there is no acquirers willing to process transactions for this industry. Or only one setting the price like the telecom companies did with premium sms billing.
I will tell you another thing, we can be open with this because it is cleared and over now and we have systems in place now to detect this. But this is what we and our competitors fight against every day.
A couple of months ago we had an affiliate and merchant setup that opened up an IPSP processing under us because of our low rates. He had a 4.9% processing ratio from us and charged 20% to the sub-sub-sub merchant. Now the problem here was many...first this is agains the regulations to aggregate funds this way, both Visa and MasterCard regulations but also against the law in many countries if you are not regulated.
So you can just imagine what kind of sites pay a "fourth-party processor" 20% for processing. Exactly how he did is nothing I will bring up here but the problem was that we were sure that his was good traffic, we could not see the sites behind first, but one day we did after going over the portfolio.
The cost (and badwill towards the financial industry) for this was enormous and after that we are maybe a bit extra hard judging clients.
Most of all merchants are good merchants trying/or making a good living, they care about their products and their members. But then there are the 1% that does everything to figure out a way to fraud and go around the system, they don't care about nothing but them self and are also screaming highest.
Now I will end with two statements:
1) Not everyone screaming to us at the boards are old bad clients. That is of course not the way, but some of them are.
2) Placing a thread on GFY will never help your case. Your account looks exactly the same for our risk department who are the ones investigating accounts.
I wish the 1% people that are very innovative finding solutions, focus that in the "right" way , then they could make a lot of money!
(I am not talking about any specific merchants or clients in the post above, it is in general)