Quote:
Originally posted by funkmaster
... guys to make this one easy ... it all depends on the scrubbing ... the less your processor scrubs ... the more signups youŽll make ... beside that, they are all the same. that easy ...
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WRONG.
It's now how much your processor scrubs but how well they scrub. Scrubbing for the wrong things is just as bad as not scrubbing at all, since it leads to fraud and excessive chargebacks.
Currently Visa, and soon to be Mastercard, is looking at transactions on a per URL basis, and I wouldn't be surprised in the next 6 months if Visa, and perhaps MC, don't start telling the PSPs that they cannot process transactions for URLs that have high chargebacks and or credits.
Someone with a near zero chargeback ratio, as a PSP, IS scrubbing too hard. But you also have to keep the amount of cb's well below the allowed limits, since those are subject to change at any time, without much notice. Just last year for instance, Visa went to 2.5%, down from 5%, and MC went to 1%, down from 2.5%.
Chargebacks are also measured in two ways by the cc's -- number of transactions and dollar amount of transactions.
Thus a 1% cb rate on transactions can be more or less on dollar amount, depending on what you are processing and the price point it covers.