I am interested in anyone's experience with Etelegate for their payment processor. I had been using Global Processing Corp previously when I received the following letter the day I was to receive my weekly settlement batch:
'Dear Valued Merchant:
As I’m sure all of you are aware, Global has recently lost its existing processing capabilities, on a temporary basis. Our current processing bank has terminated our processing relationship effective Tuesday July 26, 2005. We are already in the process of integrating with two other banks as of the date of this letter, and fully expect to be live and processing within ten business days.
Any transactions run through our system from July 18th through July 26 will not be settled as per our notification from the bank. The processing bank withheld settlement from us and therefore we are unable to settle our merchants.
As to transactions that require a refund, there are two options available. If you as a valued merchant have been settled funds on a particular transaction and wish to issue a refund, we are unable to issue refunds through the processing bank, thus any refunds issued by a merchant on an item they have been paid on by Global must issue a paper check back to the end consumer. If you have not received funds on transactions submitted from 07/18/05 – 07/26/05, our suggestion is to contact the customer and have them contact their card issuer and dispute the charge in question. This is not an avenue that Global normally would condone, and we are not telling you to do this; however, with the obvious implications of having an acquiring bank not release funds, then the options each of you has as merchants is understandably limited.'
So I now have $2K out in unsettled funds with no date to expect them if I receive them at all! I contacted Global and they now say if I have the client do a chargeback I may be affected and my charge back ratio increased drastically and my reserve account may be used up. But they advised me to do just that in their letter!
in any event if anyon has had this experience please advise. Also I was looking at Etelegate as a replacement any info on their services wold be helpful as well. Thanks!!!
Im aware of that Etelegate, has comb the hole processing marked for some month ago, to try to find some processing facilities for there venture.
So I guess they found someone and now they have the big trouble like all the others, that dont got a licens/permission to do what they did.
I hope someday, merchants will learn from all this, so that the processing industry can get a better image in the future. For all the serious companies out there it is a tiresome thing each time this happens, because it brings a bad light on the hole industry.
I welcome the Visa/MC initiative very much, and hope they will continoue to make stricted rules to get in this business.
Some of rules are ok but some of rules are making big problems for the industry.
If you think that PCI/AIS certification is the thing to prevent rogues to get new clients, then it is false. Volpay is PCI certified but they still owe too much money to merchants (6 months of hold expired already)
Dividing the world on the acquring regions is very bad rules concering the world globalisation.
Some countries can't do business on the Internet because their local bank are so stupid and lazy to get VISA/MC processing by affordable prices.
That's why those guys HAVE TO go to companies like ETelegate and etc for processing. They don't have choice to get the right solution in the right place.
That's why Etelegate, Volpay will be alive a long time while VISA/MC will be making new problems for merchants.
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Sure thats correct touol, and I can follow what you speak about.
But then again, if it should be possible to process for those merchant's that can't get a MID or a "real" 3pp. account, then a BANK or Visa/Mc regulation should be made for this. otherwise I dont believe that it is the intention that they should be alowed to process.
But the paradox is, as long as there are some regions/merchants that cant get what they want on a "ligal" basis, then there is a huge marked for those like Etelegate, Volpay and the newest scam Paysat, and dozen of others.
What I mean they give the hole Industry a bad reputation. And the AIS Level1 program is not for KIDS playing billing company. Also to get a registered MSP isn't easy if you are only out for to rip people off.
So I still believe it make sense to keep looking on lists of Visa's/MC. And then the 30.06.05 has passed so if you have to follow Visa's/MC's rules then every PSP and similar should be on those lists, else they are in trouble soon.
The basic problem is that there are always 3rd party processors who do things that they shouldn't to and when they get in trouble for it - it is not only their business that suffers but also that of all of their merchants.
In almost every situation that I've ever seen, banks just don't arbitrarily shut down a 3PP but instead they have a very good reason for it - excessive chargebacks, breach of their agreement with the bank or of Visa/MC regs, falsified information or the boarding of unapproved merchant types... just to name a few that I've seen.
The 3PP's that stand the test of time and maintain a solid reputation while less scrupulous and careful competitors go in and out of business will eventually gain more marketshare, in my opinion.
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Yes, the stand the test of time thing has a very important element: having gone through the learning curve.
Having seen the processing industry from inside it is obvoius what has happened when a processors merchants start flaming them on boards for not paying and giving lame excuses and so on... the banks have put their foot down.
And the processor does NOT want this to be public knowledge, for obvious reasons. That´s where the lame excuses begin.
I guess recent events on this board (I´ve been lurking from time to time) with the norwegian processor is a clear example on this.
So... do NOT choose who you process with based on price! Go with someone who has been around for a while and pay that extra $ for their experience. And that is experience with handling both troublesome merchants and most of all, the banks.
If there´s interest (and when time permits me) I can go into detail with the reasons for banks closing processors down, and what can be done to prevent this thing. It would be of interest for merchants to know this side of things, it is not often discussed because 3rd party processors taking part on most boards are not gateways to the banks themselves. They are links further down the chain.