Yesterday I posted this:
Evidence 1
Evidence 2
24. This restraint has particular urgency in light of devastating effect that First Data?s actions are likely to have on iBill?s business. Indeed, without such an order iBill will likely lose its business in the next few days. Thus, iBill will be irreparably harmed unless the Court orders a temporary restraining order.
Today after much additional thought and many high level conversations I have come to the conclusion that many people are missing the whole picture here.
Even if the TRO is stayed, FDC does not have to pay processing revenues to iBill. They can, by the terms of their agreement, hold ALL funds and add them to the reserves as the risk of a fine is huge. In fact, FDC does not even have to give a reason, they will just hold the money. I believe many programs are going to go down with the ship b/c they will not get paid. The "reserves" of $21 million are gone, gone and gone. FDC holds $11 million, or so iBill says and chargebacks and credits will eat that up in 2 months. The money they owe clients may not be funded, iBill is paying 2 - 4 weeks in arrears with today's processing revenue. So the music will stop, imo, and when it does there will be no chairs and no floor. This is going to be a bad, bad economic fallout and wm's don't get it. Sending one single sale to them now is butt-stupid for any pay per join program.
Someone please tell me if I am wrong! If I'm right, how many programs are going to fall? How many webmasters are going to be in deap financial trouble? One of the big three processors going under is a major event.
Evidence 1
Evidence 2
24. This restraint has particular urgency in light of devastating effect that First Data?s actions are likely to have on iBill?s business. Indeed, without such an order iBill will likely lose its business in the next few days. Thus, iBill will be irreparably harmed unless the Court orders a temporary restraining order.
Today after much additional thought and many high level conversations I have come to the conclusion that many people are missing the whole picture here.
Even if the TRO is stayed, FDC does not have to pay processing revenues to iBill. They can, by the terms of their agreement, hold ALL funds and add them to the reserves as the risk of a fine is huge. In fact, FDC does not even have to give a reason, they will just hold the money. I believe many programs are going to go down with the ship b/c they will not get paid. The "reserves" of $21 million are gone, gone and gone. FDC holds $11 million, or so iBill says and chargebacks and credits will eat that up in 2 months. The money they owe clients may not be funded, iBill is paying 2 - 4 weeks in arrears with today's processing revenue. So the music will stop, imo, and when it does there will be no chairs and no floor. This is going to be a bad, bad economic fallout and wm's don't get it. Sending one single sale to them now is butt-stupid for any pay per join program.
Someone please tell me if I am wrong! If I'm right, how many programs are going to fall? How many webmasters are going to be in deap financial trouble? One of the big three processors going under is a major event.
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