Quote:
Originally Posted by Kimmykim
And webby -- a third party escrow solution for a third party processor is not only bullshit, it's not needed. Either you trust your processor or you don't process with them imo.
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Where does a business decision to use a TTP rely on trust?? Is that they way your business is run? On trust??? If so, it would be wise to not tell your Banker this.
Clients of any third party processor don't "know" them, nevermind have any basis on which to trust them. Do you trust banks because they run friendly ads on TV?
Even banks are covered by indemnities to a degree, yet you expect webmasters to just sign on a website page and, in effect, pass ownership of billing/rebilling to a TTP and just live hope of the TTP company paying them??
We have watched a number of TTP's hit the grave owing webmasters money. How long do you expect this track record to continue and be tolerated?
It takes little logic to see know that *any* third party processing company can come and go tomorrow - they may be on the top of the pack one day, - the only direction after that is downwards and just a matter of when.
Of course there is a need for security of funds within the TTP model. Whether this is an escrow solution, insurance or some other mechanism. A few TTP's, mainly within the EU have now already implemented measures to ensure client funds in the event of their demise.
It would be nice to see this issue addressed, and not avoided, by the majority of processors. This particularly applies to processors within the US where laws are clearly non-existant to protect clients of TPP's and similar companies acting in a financial capacity, (almost as bank agents) and having no security in place - it's too absurd.
After a number of "dead parrotts" in the third party processing biz, it becomes boring chasing them, writing off their debts and burying the carcasses.
Trust is not even on the table as a topic for discussion.
