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Originally posted by scoreman
I don't agree with the Rick or Stocktrader23's analysis.
IBill will be taking their recurring and the new joins to Merrick. This isnt a situation where program owners stop running transactions, but merely have moved them. VISA/MC track site owners on an individual basis and so long as they keep their ratios in balance at Merrick, VISA is not likely to say, Oh I see you have 100 chargebacks on zero new transactions at FDR but no chargebacks on 15,000 transactions at Merrick...you deserve a fine. That doesnt make sense. VISA deals with companies moving to different banks all the time. If this analysis were correct, no one could ever change their merchant account.
11 million is a huge amount of money considering iBill was well under 1% chargebacks. That amounts to $240,000 in chargebacks on $24,000 million assuming they were right at 1% for the month after they leave. FDR is going to be releasing a large portion of that money to iBill.....there is just no way they are going to be able to keep that money and take the money from the new joins that are happening right now as well. Dont forget that this money is not one lump sum that has one payable date. This is a rolling reserve that has dates for release. IBill will get past individual dates and monies will be flowing back to them, but its not like a windfall as they will be paying to a new reserve at Merrick.
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But when will the reserve be released. I think its fair to say that the reserve dollars are still stuck at First Data. I think its also fair to say they are probably using todays earnings to pay off outstanding debts. I was still processing with Globill 5 days into troubled waters and that was the first I had heard about it. I lost a huge ass pile of money and all rebills. I dont want to think about the amount of money I lost as it gives me a headache.
Be worried. Nothing wrong with being worried. Just as has been said in many threads... cascade billing. The difficulty lies in a processor completely going under and closing up the stats area so you cannot tell who to contact to get them signed up again. Make some data downloads. Might be worth the effort to contact them. The other thing that happened that sucked was that globill eventually stopped writing to the password file, so those that were in there at the time of their demise remained until I figured out who was paying and who was not. Major pain in the ass.
I have also taken chances on other processors that were offshore etc because I am Canadian and wanting to process for avs systems/sites I own. It was total disaster. If you do go with Baddogs suggestion, watch them closely. Dont get into them for any large amounts of money. The thing that they all try to do is make it nearly impossible for you to figure out how much reserve they are keeping of yours. Know these things.
First sign of not paying... means one thing... they dont have the money (being tied up or locked by their bank or not....they dont have the money to pay) Be afraid.....