Quote:
Originally posted by nevermind
Well, I've pointed this out before. But back in '96, when my husband was in the biz, there was a big concern about whether the IPSP model was even "legal" so to speak ... and allowed under card association rules.
Obviously the IPSPs proceeded anyway, but the original "model" was always in question.
Now that the industry has really pissed them off, they're really cracking down with all of the rules --- including this one.
So, as usual, the industry only has itself to blame -- even on this one.
I'd bet Mastercard wouldn't be making that demand if billing practices were ethical and under control.
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Indeed. But it's pointed out in the filing that VISA came up with a solution that didn't require anyone else to totally change their business around.
Extra paperwork? Yep. A fee? Yep. Making the processors redesign their businesses entirely? Nope.
MC could very easily use the VISA method of making each URL register and pay a fee.
The cost would again be absorbed by everyone but MC, so cost isn't an issue.
It's too late to say the 3rd party model is illegal and shouldn't have been allowed. MC and VISA let it go on for years so they are in part responsible for the fact that it even exists.