Ematic
04-25-2002, 11:14 PM
Not sure about source as it doesn't seem to be picked up by others -- yet.
http://www.lendingintelligence.com/news.ez?viewStory=1074&Form.sess_id=84492
MasterCard Backs Off PayPal in Row Over Online Charging
NEW YORK, April 23 (LendingIntelligence.com) — After reports to the contrary, MasterCard International Inc. clarified today that it would not prohibit third-party companies, like PayPal, from processing MasterCard transactions via the internet.
The clarification came in response to several reports that the Purchase, N.Y., credit card company was trying to strong-arm merchants into using banks and credit unions — MasterCard clients — to process their credit card transactions for a fee, instead of using free third-party vendors for the same purpose.
In fact, MasterCard initiated a policy to protect financial institutions and cardholders from internet fraud and identity theft, company spokesman Alex Lau said. More specifically, the change was aimed at pornographic and gaming sites, which generally have a higher rate of credit card fraud, said Gartner Inc. analyst Avivah Litan.
MasterCard “is not trying to disrupt the internet economy,” Litan added.
Franco Turrinelli, an analyst at Chicago-based investment firm William Blair & Co., blamed the confusion on the “media interpretation” of MasterCard’s plan.
“Companies like PayPal are instrumental in controlling online fraud,” said Turrinelli. “It was clearly inconsistent for MasterCard to say they want to control identity theft, and then say, ‘Oh yeah, we want to curb companies like PayPal.’ The interpretation was wrong and MasterCard was quick to clarify its position.”
http://www.lendingintelligence.com/news.ez?viewStory=1074&Form.sess_id=84492
MasterCard Backs Off PayPal in Row Over Online Charging
NEW YORK, April 23 (LendingIntelligence.com) — After reports to the contrary, MasterCard International Inc. clarified today that it would not prohibit third-party companies, like PayPal, from processing MasterCard transactions via the internet.
The clarification came in response to several reports that the Purchase, N.Y., credit card company was trying to strong-arm merchants into using banks and credit unions — MasterCard clients — to process their credit card transactions for a fee, instead of using free third-party vendors for the same purpose.
In fact, MasterCard initiated a policy to protect financial institutions and cardholders from internet fraud and identity theft, company spokesman Alex Lau said. More specifically, the change was aimed at pornographic and gaming sites, which generally have a higher rate of credit card fraud, said Gartner Inc. analyst Avivah Litan.
MasterCard “is not trying to disrupt the internet economy,” Litan added.
Franco Turrinelli, an analyst at Chicago-based investment firm William Blair & Co., blamed the confusion on the “media interpretation” of MasterCard’s plan.
“Companies like PayPal are instrumental in controlling online fraud,” said Turrinelli. “It was clearly inconsistent for MasterCard to say they want to control identity theft, and then say, ‘Oh yeah, we want to curb companies like PayPal.’ The interpretation was wrong and MasterCard was quick to clarify its position.”