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Originally Posted by 3M TA3
This is a great thread. I've been searching for and pondering some of this information as well.
My question is this. Why would a processor decline a sale or rebill unless it was in the best interest of all parties? The processor makes money too off of each sale, and they will get a charge back if they rebill without giving access to the subscription.
Is there something that I'm missing?
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Processors don't decline rebills. Rebills don't go through fraud scrubbing again. Rebills are declined by the bank or the issuing card bank. Most processors will hold the rebill and retry it on a soft decline -- ie Insufficient Funds on the card -- for a number of days after the original rebill date.
Expired cards, deactivated, lost, stolen, closed by the bank, etc are worthless since there's nothing you can do with any of those things after the fact.
Fraud scrubbing on sales is a different animal and its what keeps people in business. If you can't stay within the allowed limits set by the card associations, then you lose your ability to process transactions.
The more affiliates you have, the more cheating goes on, and the more that needs to be checked in order to make sure transactions are good. Depending on your account history (and specific affiliates account history on pass thru coding that identifies affiliates) your account may have higher scrubbing on it, and some affiliates may have higher scrubbing on them.
It's a very complicated process, since when you come to the point that you're in trouble with Visa or MC, it's damn near impossible to get out of trouble without paying high fines or getting terminated.