IBill, First Data in Contract Dispute - GoFuckYourself.com

SEObot · 09-21-2004, 03:41 PM

NEW YORK ? Third-party payment processor iBill filed a complaint against First Data Merchant Services Corp. alleging that the company is costing iBill $800,000 per day because it failed to make good on the promise to help transition its accounts to another credit card processor after the expiration of a contract dating back to 1998.

In legal documents obtained by XBiz, iBill contends that it could go out of business by as early as next week if the Court does not issue a temporary restraining order against First Data.

In papers filed in New York Supreme Court, iBill alleges that First Data's failure to fulfill its promise to work with the third-party processor as it moved customer accounts over to New York-based Merrick Bank could cause "irreparable harm" to its business and customer base.

IBill has been using First Data Merchant Service and First Bank Financial, collectively known as First Data, as the processor for its credit card receipts for the past six years. IBill's contract with First Data technically expired on Sept. 15.

The plaintiff, iBill, had expected the transition to be completed by Nov. 15, but now claims that First Data reneged on the promise and put iBill and its business process in jeopardy and could possibly result in iBill's closure.

IBill claims that by noon on Sept. 16, the day after its official contract with First Data expired, the credit card processor would no longer process iBill's credit card transactions, leaving iBill in the lurch and unable to continue to service its customer base of more than 4,000 Internet-based clients.

IBill had been in negotiations with Merrick Bank since mid-August to replace First Data as its processor.

IBill is asking for the court's intervention to maintain status quo and "avoid the catastrophic consequences of First Data's threatened action."

"Any termination by defendants would result in immediate, irreparable harm to plaintiff and its customer bases," the complaint said. "Cancellation of its credit card support arrangements would effectively put plaintiff's customers out of business, depriving them of any ability to function. Absent a temporary restraining order, plaintiff and many of its customers may be forced to close their doors."

Deerfield Beach, Fla.-based iBill, which is short for Internet Billing Company Ltd., is one of the leading third-party credit card processors for the online adult industry. The company is publicly traded on the Nasdaq exchange.

Nearly 78 percent of iBill?s revenues are from adult entertainment content. In 2003, iBill averaged 1.2 million transactions per month and completed approximately $330 million in gross transactions.

In July, Care Concepts I, Inc. agreed to acquire Media Billing LLC and Internet Billing Co., collectively known as iBill, from Penthouse International for $55 million in an all-stock deal.

Representatives for iBill and First Data could not be reached for comment.

directfiesta · 09-21-2004, 03:45 PM

Have work to do tonight ....

Ice · 09-21-2004, 03:46 PM

excerpt from the pdf file

Despite it's repeated assurances that it would extend the Agreement, First Data informed Ibill at noon on September 16,2004 that at 4:00pm on that same day it would no longer process Ibill's credit card transactions.

Ibill is now left without any credit card processor and it is unable to continue servicing its customers. As a result of First Data's actions Ibill is losing approximately $800,000 a day. At this rate, Ibill will have to close it's business by early next week.

http://www.caryromanoff.com/evidence1.pdf
http://www.caryromanoff.com/evidence2.pdf

EscortBiz · 09-21-2004, 04:08 PM

Quote:

Originally posted by iceicebaby
excerpt from the pdf file

Despite it's repeated assurances that it would extend the Agreement, First Data informed Ibill at noon on September 16,2004 that at 4:00pm on that same day it would no longer process Ibill's credit card transactions.

Ibill is now left without any credit card processor and it is unable to continue servicing its customers. As a result of First Data's actions Ibill is losing approximately $800,000 a day. At this rate, Ibill will have to close it's business by early next week.

http://www.caryromanoff.com/evidence1.pdf
http://www.caryromanoff.com/evidence2.pdf

thats like 32,000 joins a day at 24.95

Drake · 09-21-2004, 04:24 PM

Let's hope they pull thru it

solonline · 09-21-2004, 04:27 PM

this aint good for anyone no matter who you process with

09-21-2004, 03:41 PM	#1
SEObot So Fucking Banned Join Date: Sep 2004 Location: Texas Posts: 223	IBill, First Data in Contract Dispute NEW YORK ? Third-party payment processor iBill filed a complaint against First Data Merchant Services Corp. alleging that the company is costing iBill $800,000 per day because it failed to make good on the promise to help transition its accounts to another credit card processor after the expiration of a contract dating back to 1998. In legal documents obtained by XBiz, iBill contends that it could go out of business by as early as next week if the Court does not issue a temporary restraining order against First Data. In papers filed in New York Supreme Court, iBill alleges that First Data's failure to fulfill its promise to work with the third-party processor as it moved customer accounts over to New York-based Merrick Bank could cause "irreparable harm" to its business and customer base. IBill has been using First Data Merchant Service and First Bank Financial, collectively known as First Data, as the processor for its credit card receipts for the past six years. IBill's contract with First Data technically expired on Sept. 15. The plaintiff, iBill, had expected the transition to be completed by Nov. 15, but now claims that First Data reneged on the promise and put iBill and its business process in jeopardy and could possibly result in iBill's closure. IBill claims that by noon on Sept. 16, the day after its official contract with First Data expired, the credit card processor would no longer process iBill's credit card transactions, leaving iBill in the lurch and unable to continue to service its customer base of more than 4,000 Internet-based clients. IBill had been in negotiations with Merrick Bank since mid-August to replace First Data as its processor. IBill is asking for the court's intervention to maintain status quo and "avoid the catastrophic consequences of First Data's threatened action." "Any termination by defendants would result in immediate, irreparable harm to plaintiff and its customer bases," the complaint said. "Cancellation of its credit card support arrangements would effectively put plaintiff's customers out of business, depriving them of any ability to function. Absent a temporary restraining order, plaintiff and many of its customers may be forced to close their doors." Deerfield Beach, Fla.-based iBill, which is short for Internet Billing Company Ltd., is one of the leading third-party credit card processors for the online adult industry. The company is publicly traded on the Nasdaq exchange. Nearly 78 percent of iBill?s revenues are from adult entertainment content. In 2003, iBill averaged 1.2 million transactions per month and completed approximately $330 million in gross transactions. In July, Care Concepts I, Inc. agreed to acquire Media Billing LLC and Internet Billing Co., collectively known as iBill, from Penthouse International for $55 million in an all-stock deal. Representatives for iBill and First Data could not be reached for comment.

09-21-2004, 03:45 PM	#2
directfiesta Too lazy to set a custom title Industry Role: Join Date: Oct 2002 Location: Montreal, Quebec Posts: 29,677	Have work to do tonight .... __________________ I know that Asspimple is stoopid ... As he says, it is a FACT ! But I can't figure out how he can breathe or type , at the same time ....

09-21-2004, 03:46 PM	#3
Ice Confirmed User Join Date: Nov 2002 Location: Sunny California Posts: 26,053	excerpt from the pdf file Despite it's repeated assurances that it would extend the Agreement, First Data informed Ibill at noon on September 16,2004 that at 4:00pm on that same day it would no longer process Ibill's credit card transactions. Ibill is now left without any credit card processor and it is unable to continue servicing its customers. As a result of First Data's actions Ibill is losing approximately $800,000 a day. At this rate, Ibill will have to close it's business by early next week. http://www.caryromanoff.com/evidence1.pdf http://www.caryromanoff.com/evidence2.pdf __________________ icq 1904905

09-21-2004, 04:24 PM	#5
Drake Hello world! Industry Role: Join Date: Mar 2003 Posts: 12,508	Let's hope they pull thru it

09-21-2004, 04:27 PM	#6
solonline Confirmed User Join Date: Jan 2003 Location: EU- Posts: 718	this aint good for anyone no matter who you process with