Quote:
Originally posted by Triple 6
Thanks for the info... Well I guess my 'guess' was sort of right. Broke ass billing system would pretty much provoke chargebacks. I mean, damn, when I click "CANCEL", and I get an email that says it was 'cancelled'... I would expect that it was cancelled. Or am I asking too much?
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Well, I have to agree, if that's what happened. And I do agree with Kimmy that the fine problem has happened to all of the IPSPs and other processors.
BUT, I think the real problem is the following: How does an IPSP make money with only a 15 percent or less fee? Huge volume.
Which means the IPSP has to listen to their big clients and become partners with them. The big guys want the sleazy billing tactics because they make more money with it in the short run.
And the IPSPs go along because they make more money too.
The problem is that it pisses off Mastercard et. al., and getting in line with Mastercard loses you a ton of money. Compliance is very expensive.
So the IPSPs tend to blow it off until they're fined to death and, by then, it's too late and Mastercard is threatening to cut them off.
The bottom line is that the financial incentives create a conflict of interest of sorts.