Quote:
Originally posted by Probono
The only reason I am bothering to comment on any of this is our experience having an account closed by FDC. Like Ibill we were notified with six weeks advance notice. In that six weeks FDC impounded a significant amount of our revenues as a reserve against their risk of chargebacks.
Before the six weeks were complete we had an new account and shifted our processing. We are nothing compared to Ibill in gross sales. I must ponder why Ibill did not have a contingency plan for their processing and why they think FDC will not retain a reserve for several months.
I guess they could offer a lien on real estate or negotiate something else to free up cash, I have no inside knowledge.
What bothers me most as a neutral outsider is that they do not have the cash reserves to pay their clients. They should have had a reserve of their own for this type of calamity.
|
Ibill had a LOT longer than 6 weeks but decided to leave it to the last minute (or were unable to get alterantive banking) and paid the price. They may have been screwed at the end but the writing was on the wall for a very long time and they had loads of advance warning.