Are the processing companies handling the new 1% chargeback ratio correctly? - GoFuckYourself.com

~Ray · 10-16-2003, 01:29 PM

Are the processing companies handling the new 1% chargeback ratio correctly?

What I mean is this...

The webmaster is responsible for maintaining a 1% cb ratio or less... so why are the processing companies scrubbing harder? It's not their responsibility to maintain a 1% cb ratio...it's the webmaster's responsibility.

So, if the processors loosen up the scrubbing... then all of the shitty paysites that receive high cb ratio's would lose their accounts and be run out of business...and that is a GREAT thing for the legitimate webmasters.

Why do the processors tighten their cc scrubbing just to help shitty paysites stay in business while hurting the legitimate paysite's sales?

Any thoughts on this?

~Ray

JFPdude · 10-16-2003, 01:47 PM

If they did loosen up the scrubbing and allowed the webmasters to continue on then they could lose their processing rights.

It's a 2-way street and they are protecting their business. We all knew it was going to come to this. Those that prepared themselves or had a legal business to start with are not worried. Those trying to make the quick buck the old way ... well hope they close the door as they leave.

jacker · 10-16-2003, 01:48 PM

Ray

I am going to be candid here. Processors are in business also, and unfortunately what that means is that they want to process as much volume as possible, period. If that means being a little tougher on clean merchants, then that's what it means. I cannot say that I wouldn't be pissed off if i was a clean merchant, but that's the way it works. Sometimes, and I am only speaking for PaySystems, we will look at merchants with large volume and clean records and analyze our scrubbing. For the most part, by being with a processor, you are only as strong as that processor's weakest merchant.

Regards
James

FATPad · 10-16-2003, 01:54 PM

The processors still get fined if their overall c/b ratio is over 1% as far as I know.

Kimmykim · 10-16-2003, 02:54 PM

Ray,
Go back and read what you wrote and tell me how it makes sense. You are normally pretty well on target but this is a bit off the wall.

~Ray · 10-16-2003, 03:07 PM

Quote:

Originally posted by Kimmykim
Ray,
Go back and read what you wrote and tell me how it makes sense. You are normally pretty well on target but this is a bit off the wall.

It was harder to put into words than I thought. It just seemed like the processors were scrubbing harder to reduce the amount of chargebacks... but what if you ran a clean paysite and never had any problems with chargebacks...now your business is hurting due to the increased scrubbing that the processors do to help the sites with high cb ratios stay under 1%.

Again, maybe I'm not saying it correctly. Maybe the processors can have an auto program that tightens the scrub for sites who need it while maintaining a normal scrub for those who don't.

I'm probably missing something...

~Ray

jacker · 10-16-2003, 03:32 PM

Ray

I think an automated system would make life much easier for all of us. But where do you draw the line...which scrubbing techniques do you loosen for a clean merchant...what does the "clean" merchant say when his account gets nailed with chargebacks because some fool hit him with a DB of cards........

If you have an answer, though, we are all ears.

James

Stevie Ward · 10-16-2003, 03:38 PM

The point is that they HAVE to scrub more now or else they run the risk of their merchant accounts. And if that happens then you have a ton of webmasters waking up to find their rebills have disappeared. A processor exceeding the 1% doesn't do anyone in the idustry good......It is an interesting climate right now huh?

jacker · 10-16-2003, 03:47 PM

Quote:

Originally posted by Stevie Ward
It is an interesting climate right now huh?

That is where we hope to take advantage of the industry trend. Because of our merchant portfolio, we will be able to handle the chargeback ratios while a processor focusing on the adult industry alone will have to be extremely careful simply because they have to pool all the adult transactions together. Anyway...this is getting redundant...a possible solution would be to move your tangible goods out of your adult processors so that they do not scrub as hard (tangible goods are lower risk) and opening a merchant account with a mainstream processor (PaySystems)...this allows your DVD sales to remain at the same level.

Cheers
James

~Ray · 10-16-2003, 06:10 PM

Quote:

Originally posted by jacker
Ray

If you have an answer, though, we are all ears.

James

I wish I had all the answers...

~Ray

10-16-2003, 01:29 PM	#1
~Ray visit hardlinks.org Industry Role: Join Date: Jun 2003 Location: Las Vegas , Nv >>> [email protected] or icq 94994627 anytime Posts: 18,362	Are the processing companies handling the new 1% chargeback ratio correctly? Are the processing companies handling the new 1% chargeback ratio correctly? What I mean is this... The webmaster is responsible for maintaining a 1% cb ratio or less... so why are the processing companies scrubbing harder? It's not their responsibility to maintain a 1% cb ratio...it's the webmaster's responsibility. So, if the processors loosen up the scrubbing... then all of the shitty paysites that receive high cb ratio's would lose their accounts and be run out of business...and that is a GREAT thing for the legitimate webmasters. Why do the processors tighten their cc scrubbing just to help shitty paysites stay in business while hurting the legitimate paysite's sales? Any thoughts on this? ~Ray __________________ Adult Backlinks for Adult Websites - Testimonials Available

10-16-2003, 01:48 PM	#3
jacker Confirmed User Join Date: Oct 2003 Location: Montreal, Canada Posts: 215	Ray I am going to be candid here. Processors are in business also, and unfortunately what that means is that they want to process as much volume as possible, period. If that means being a little tougher on clean merchants, then that's what it means. I cannot say that I wouldn't be pissed off if i was a clean merchant, but that's the way it works. Sometimes, and I am only speaking for PaySystems, we will look at merchants with large volume and clean records and analyze our scrubbing. For the most part, by being with a processor, you are only as strong as that processor's weakest merchant. Regards James __________________ James Acker PaySystems Corporation 1-866-699-9021 x2109 [email protected] icq: 60019103

10-16-2003, 01:54 PM	#4
FATPad Confirmed User Join Date: Oct 2001 Posts: 6,693	The processors still get fined if their overall c/b ratio is over 1% as far as I know. __________________ <a href="http://www.adultcontent.co.uk">Adult Content UK - Great British Content</a>

10-16-2003, 03:32 PM	#7
jacker Confirmed User Join Date: Oct 2003 Location: Montreal, Canada Posts: 215	Ray I think an automated system would make life much easier for all of us. But where do you draw the line...which scrubbing techniques do you loosen for a clean merchant...what does the "clean" merchant say when his account gets nailed with chargebacks because some fool hit him with a DB of cards........ If you have an answer, though, we are all ears. James __________________ James Acker PaySystems Corporation 1-866-699-9021 x2109 [email protected] icq: 60019103

10-16-2003, 01:47 PM	#2
JFPdude Confirmed User Join Date: Jan 2002 Location: Mountains of Western North Carolina. Posts: 4,027	If they did loosen up the scrubbing and allowed the webmasters to continue on then they could lose their processing rights. It's a 2-way street and they are protecting their business. We all knew it was going to come to this. Those that prepared themselves or had a legal business to start with are not worried. Those trying to make the quick buck the old way ... well hope they close the door as they leave.

10-16-2003, 02:54 PM	#5
Kimmykim bitchslapping zebras!!!!! Industry Role: Join Date: Jun 2001 Location: In a shack by the beach Posts: 16,015	Ray, Go back and read what you wrote and tell me how it makes sense. You are normally pretty well on target but this is a bit off the wall.

10-16-2003, 03:38 PM	#8
Stevie Ward Registered User Join Date: Feb 2002 Location: sunny place Posts: 96	The point is that they HAVE to scrub more now or else they run the risk of their merchant accounts. And if that happens then you have a ton of webmasters waking up to find their rebills have disappeared. A processor exceeding the 1% doesn't do anyone in the idustry good......It is an interesting climate right now huh?