GoFuckYourself.com - Adult Webmaster Forum - View Single Post - Paypal Says They Will charge the Visa fees too.

RonC · 10-04-2002, 11:03 PM

It is complicated but first you have to understand how Visa and MasterCard work.

There are merchants, acquiring banks, and visa

Merchants (ccbill, guy who has his own account with bank)
acquiring banks (bank one, wells fargo)
Visa/MC (card assoc)

Merchants have the relationship with banks.
Banks are the only people that have relationships with Visa.

Say you wanted to get your own merchant account not an IPSP account. As Mitch said earlier you would have to pay $1500 to bank one. If you decided to open a new account at wells fargo you would have to pay another $1500.

Visa has followed the same logic. If an IPSP opens a bank account they have to pay the IPSP fees. $5k + $750 per sponsored merchants.

What everyone is forgetting is that Visa will probably register 75,000 to 100,000 webmasters at $750. That is 75 million dollars that the banks and Visa will get. This is a good thing on one hand. The more money that Visa gets the harder it becomes for those people inside Visa that would just like to see Visa drop adult all together.

10-04-2002, 11:03 PM
RonC Confirmed User Industry Role: Join Date: Jul 2002 Posts: 236	It is complicated but first you have to understand how Visa and MasterCard work. There are merchants, acquiring banks, and visa Merchants (ccbill, guy who has his own account with bank) acquiring banks (bank one, wells fargo) Visa/MC (card assoc) Merchants have the relationship with banks. Banks are the only people that have relationships with Visa. Say you wanted to get your own merchant account not an IPSP account. As Mitch said earlier you would have to pay $1500 to bank one. If you decided to open a new account at wells fargo you would have to pay another $1500. Visa has followed the same logic. If an IPSP opens a bank account they have to pay the IPSP fees. $5k + $750 per sponsored merchants. What everyone is forgetting is that Visa will probably register 75,000 to 100,000 webmasters at $750. That is 75 million dollars that the banks and Visa will get. This is a good thing on one hand. The more money that Visa gets the harder it becomes for those people inside Visa that would just like to see Visa drop adult all together.