From Cardline News?.
PAYCOM SUES MASTERCARD OVER CHARGEBACK FINES: Paycom Billing Services Inc., a Marina Del Rey, CA-based company that primarily processes card transactions for adult Web sites, has filed an antitrust lawsuit against MasterCard International in the U.S. District Court for the Central District of California in Los Angeles. Paycom is alleging that MasterCard has established monopolistic rules that allow it unreasonable discretion to dominate Internet merchants, Dennis M.P. Ehling, Paycom's attorney, tells CardLine today. Ehling says MasterCard either has collected or has attempted to collect more than $2.5 million in fines from Paycom for excessive chargebacks that have occurred since June 2001. MasterCard imposes the fines when chargebacks exceed a 1% of ongoing sales threshold. Ehling says that some months Paycom's chargebacks were below the threshold, and some months they were above it. About 40% of the cards Paycom processes are MasterCards. MasterCard called the allegations "baseless."
"It is nothing more than a brazen attempt to avoid complying with MasterCard rules that are designed to protect consumers, merchants and MasterCard's member financial institutions," MasterCard said in a statement.
End News Story
Start Paycom / EPOCH Response
Someone at MasterCard must have gotten up to the ?B??s today in the dictionary. ?Baseless? and ?Brazen?. Good words, not applicable here. Their statement is a testament to their arrogance.
A further note: Regardless of the author?s writing, Paycom (and our attorney knows this and the lawsuits states) has not been over 1% for since last May (12 months).
PAYCOM SUES MASTERCARD OVER CHARGEBACK FINES: Paycom Billing Services Inc., a Marina Del Rey, CA-based company that primarily processes card transactions for adult Web sites, has filed an antitrust lawsuit against MasterCard International in the U.S. District Court for the Central District of California in Los Angeles. Paycom is alleging that MasterCard has established monopolistic rules that allow it unreasonable discretion to dominate Internet merchants, Dennis M.P. Ehling, Paycom's attorney, tells CardLine today. Ehling says MasterCard either has collected or has attempted to collect more than $2.5 million in fines from Paycom for excessive chargebacks that have occurred since June 2001. MasterCard imposes the fines when chargebacks exceed a 1% of ongoing sales threshold. Ehling says that some months Paycom's chargebacks were below the threshold, and some months they were above it. About 40% of the cards Paycom processes are MasterCards. MasterCard called the allegations "baseless."
"It is nothing more than a brazen attempt to avoid complying with MasterCard rules that are designed to protect consumers, merchants and MasterCard's member financial institutions," MasterCard said in a statement.
End News Story
Start Paycom / EPOCH Response
Someone at MasterCard must have gotten up to the ?B??s today in the dictionary. ?Baseless? and ?Brazen?. Good words, not applicable here. Their statement is a testament to their arrogance.
A further note: Regardless of the author?s writing, Paycom (and our attorney knows this and the lawsuits states) has not been over 1% for since last May (12 months).
]
Comment