Quote:
Originally Posted by The Porn Nerd
I don't understand!
A processor collects money, does all the transactions, PROCESSES THE MONEY - then the money is.....where? Delayed? What are they DOING with all the monies and cash flow they are collecting every second of every damn day?
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A 3rd party processor is no different than, for example, you and me launching a site together and you running the site and me doing the billing. In that scenario I am the 3rd party processor, and you are the webmaster.
Now let's assume for a minute that regulations allowed it, and that I was crazy as all hell, I could come out tomorrow and say, "HEY EVERYONE PROCESS WITH POMPOUSJOHN I'LL DO IT CHEAPER THAN ANYONE AND PAY YOU FASTER - YOU DO NOTHING I DO EVERYTHING"
So now suddenly I have to work just as hard as any other ISPS for less money. And who is going to process with me?
1) people who have nothing to lose - already been rejected or shut down by everyone else. Why were they shut down? Most likely for a good reason. Most likely they blame the person who shut them down though cause, you know, dumbasses are never at fault for anything. And most likely they will continue pulling whatever shit got them shut down.
2) people who can't afford to pay what everyone else is charging Why can't they afford it? 1 out of 100 is a fast learning pilgrim just starting down the path, the other 99 are fucking losers who have no business running a business of any kind and if they did they would have a few bucks to invest or at least the good sense not to process with the cheapest shop in town.
3) scammers who are running a risky game and want to mitigate those risks by reducing their buy-in to zero since they know they are going to get busted sooner or later and have to rinse/repeat anyway. The fast payouts make me even more attractive to these types.
So now I've got a nice portfolio of fuckups, noobs and scammers and I am paying out of pocket to set them all up and make them think they have a place at the table. Not only is each of them literally costing me money to get them started, but since I am trying to undercut my competition I am not making even half what my competitors are making per transaction, from their customers.
To top it all of their fuckups are straining my relationships with the acquirers I get my merchant accounts from, the ones who make deposits into my accounts that enable me to pay my clients, and now reserves are being held, processing rates increasing, deposits delayed etc.
WTF was I expecting? I guess maybe I thought I could swoop in and scrape the cream off of the top and leave the "idiots" that had been in the business for years in the dust with my amazing volume. Well a few years down the road, the ends stopped meeting and it was time to change the strategy, so I guess now I'll come in with fewer benefits except this time instead of the new kid on the block who is at least an unknown entity, now the risks of doing business with me are well documented and no one is giving me the benefit of the doubt anymore.
Will it work? Who knows. I guess we'll see.
Personally I'll be the first to admit my issues with Zombaio come from a bad experience I had with them years ago. They shut down my account and told me some bold face and lies about why that even an idiot would not believe.
But, I am very glad that happened, and they did pay me every cent. It was one of the things that got me looking for my own merchant processing accounts and I ended up with private merchant accounts which was immensely better for everyone involved.
Also, having my own merchant processing accounts helped me to understand why Zombaio was so freaked out over my stats and why they did what they did. I still think they are idiots though and I pity anyone who works with them because many would be better off elsewhere and those who really need what they offer and cant get it anywhere else are in a pretty sad state.
In the end, I am better off without them and they are likely better off without me. So it's all good.
/rant