Quote:
Originally posted by Kimmykim
My only comment is about the scrubbing situation -- if you're familiar with how the transaction count for chargebacks works, you will know that you must maintain or grow your transaction count every month just to maintain the level you are currently at.
If your chargeback levels start to climb, scrubbing harder and declining more transactions will NOT help your cb situation, it will make it worse.
Here is an example --
you do 1000 sales per month and you have 9 chargebacks. That is .9%
if you drop and only do 900 sales per month, and you still have the same 9 chargebacks you are now at 1%.
remember that chargebacks are accrued in the month they come in, not back to the original month of the charge.
So the math of scrubbing harder and lowering sales volume in order to drop chargebacks would not be a viable one unless you were in a position where lowering your number of transactions would not put you in jeopardy of raising your cb level above what is allowed...
I have no idea what the overall cb ratio is at any processor so I am not speculating on what anyone is doing, I'm simply pointing out a bit of math that people often overlook when they think they have come up with an answer for lower sales.
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if there is indeed no scrubbing going on then I think the whole online porn industry is crumbling before our eyes in the last 3 weeks.