GoFuckYourself.com - Adult Webmaster Forum - View Single Post - Your Own Merchant Account...Consider this.

Epoch · 10-04-2004, 02:06 PM

If you are planning on obtaining your own merchant account for adult 5967
processing then there are a few things that you should consider prior to
doing so.

If you are currently processing with a HRIPSP this processing could
be jepordized based upon the performance of your own merchant account.

If your account is out of compliance with the Visa / MC rules, you could be placed
on the TMF (terminated merchant file) you will then lose your ability to process with any HRIPSP.

How do you get placed on the TMF?

Most people will probably have this occur due to exceeding the Mastercard
chargeback thresholds.

THe Mastercard ratio is 1% with a minimum of 15 (fifteen) chargebacks!

If you exceed this ratio you will be fined extensively and will probably be placed on
the TMF file. Once on the TMF you will have to stop processing in your merchant account AND with your HRIPSP
and will be no longer able to accept credit card transactions for VISA and MC.

If you violate the VISA thresholds of 1% and 100 cbks you will also be placed
on the list. Due to the larger number of chargebacks required in the VISA program
most smaller programs will never reach this threshold number. Because the number of
chargebacks required for the MC program is only 15 almost every program will qualify.

When you process with a HRIPSP your ratios for Mastercard are not considered,
it is only the combined ratio of the HRIPSP that is reported to Mastercard (Unlike VISA).

The fine for a MC violation starts at $25,000 per month and escalates to $100,000 per month in subsequent months. Plus there
is an additional fine for each chargeback and sometimes for each credit.

Most people who are obtaining their own merchant account have no idea
about this rule and the stiff financial penalties associated with a Mastercard violation not to mention
the potential for losing your entire processing ability.

There are reasons why companies process with HRIPSPs and avoid their own merchant account.

Don't be falsey led into beleiving that individual merchant accounts are the wave of the future, they are not; they are the failure of the past!

Make sure you understand what you are signing when you are applying for your own merchant account!

READ, very carefully any such agreement, because once you go down that road, there may be no turning back.

Clay
EPOCH

10-04-2004, 02:06 PM
Epoch Confirmed User Join Date: Jan 2002 Location: Marina del Rey, CA Posts: 193	Your Own Merchant Account...Consider this. If you are planning on obtaining your own merchant account for adult 5967 processing then there are a few things that you should consider prior to doing so. If you are currently processing with a HRIPSP this processing could be jepordized based upon the performance of your own merchant account. If your account is out of compliance with the Visa / MC rules, you could be placed on the TMF (terminated merchant file) you will then lose your ability to process with any HRIPSP. How do you get placed on the TMF? Most people will probably have this occur due to exceeding the Mastercard chargeback thresholds. THe Mastercard ratio is 1% with a minimum of 15 (fifteen) chargebacks! If you exceed this ratio you will be fined extensively and will probably be placed on the TMF file. Once on the TMF you will have to stop processing in your merchant account AND with your HRIPSP and will be no longer able to accept credit card transactions for VISA and MC. If you violate the VISA thresholds of 1% and 100 cbks you will also be placed on the list. Due to the larger number of chargebacks required in the VISA program most smaller programs will never reach this threshold number. Because the number of chargebacks required for the MC program is only 15 almost every program will qualify. When you process with a HRIPSP your ratios for Mastercard are not considered, it is only the combined ratio of the HRIPSP that is reported to Mastercard (Unlike VISA). The fine for a MC violation starts at $25,000 per month and escalates to $100,000 per month in subsequent months. Plus there is an additional fine for each chargeback and sometimes for each credit. Most people who are obtaining their own merchant account have no idea about this rule and the stiff financial penalties associated with a Mastercard violation not to mention the potential for losing your entire processing ability. There are reasons why companies process with HRIPSPs and avoid their own merchant account. Don't be falsey led into beleiving that individual merchant accounts are the wave of the future, they are not; they are the failure of the past! Make sure you understand what you are signing when you are applying for your own merchant account! READ, very carefully any such agreement, because once you go down that road, there may be no turning back. Clay EPOCH