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That's a very clever and interesting, albeit sketchy, solution.
But have they advised their webmasters of this? How could they implement something like this and not inform their webmasters.
Personally, I think this is a huge step in screwing the consumers. As it's been said, cash advance transactions are extremely tough to chargeback. That fact alone is going to cause problems.
There's also the fact that cash advance transactions accrue interest immediately, bypassing the grace days alloted to regular purchases. Say your customer is getting billed for a $39.95 subscription and his credit card has 21 grace days and a 18.5% interest rate. He's going to see a $0.42 cash advance interest fee.
Couple the descriptor change, the interest charge and the possibility of a $1 or $2 cash advance fee, and Visa is going to be getting a lot of calls from a lot of unhappy customers demanding interest fee reversals, cash advance fee reversals and fraud claims concerning unrecognized charges from "gkard load*gkbill.com".
We all know that not everyone reads their email. This email from iBill will go unnoticed by most consumers. That leads to a scenario where tons of customers will cancel their card, claiming "gkard load*gkbill.com" is a fraudulent charge. You can't rebill a card closed for fraud. Therefore, you've lost a customer.
Combine the interest reversals, fee credits and fraud claims, and Visa will take notice and investigate further. And they won't be happy.
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