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Thread: New VISA / MasterCard rules?
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10-03-2002, 04:06 AM #1Junior Guru Wannabe
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New VISA / MasterCard rules?
What you think guys? Will it affect other third-party merchants (2checkout, revecom, ...)?
Dear Webmasters,
CCBill, EPOCH / Paycom and iBill would like to jointly inform and update you on several new Visa regulation that will affect the way we, as Internet Payment Service Providers (IPSP’s) and our clients conduct business. Visa has mandated that a new, unique set of operating guidelines will be implemented by November 1st. These rules are worldwide, not just in the USA.
Under the new Visa rules, iBill, CCBill, and EPOCH / Paycom along with other providers in our market space will be considered IPSP’s. An IPSP is a company that provides a broad array of services and has financial responsibility and liability for merchant accounts whereby you, our clients (Sponsored Merchants) are allowed to process and settle Internet transactions.
It is our mutual responsibility to ensure that we fully comply with all regulations implemented by the card associations. We are committed to seamlessly implementing the new regulations while retaining a business model that is good for the industry. Below is a summary of the requirements for Visa that we must implement by November 1st:
VISA
· Each Sponsored Merchant must complete a registration form that we will submit to Visa on your behalf. A form will be provided to you by each of us, electronically, as soon as possible. Some of the data elements required are: company name, address, transaction counts, dollar volumes, URL’s, etc.
· An initial registration fee of $750.00 per company (not per url) will be charged to register each Sponsored Merchant. $500.00 of this fee is payable by the Acquiring Banks to Visa, the balance are administrative fees to the banks and processors. These fees are due November 15th.
· An ongoing annual registration fee of $375.00 will be charged. $250.00 of this fee is payable by the Acquiring Banks to Visa, the balance are administrative fees to the banks and processors.
· Sponsored Merchants must be approved by Visa for processing Visa transactions under the new rules, and will be checked against Visa’s TMF list (Terminated Merchant File) and the MATCH File, a joint Visa / MasterCard database. You are obviously processing now, so that service will not be interrupted if you have paid your registration fee and completed your registration form.
· IPSP’s can only register Sponsored Merchants in the country where the Sponsored Merchant has a presence.
· IPSP’s are required to provide Visa with monthly sales, chargeback and credit data for their review, by Sponsored Merchant and down to the URL of each Sponsored Merchant site. Sponsored Merchants who are out of compliance on chargeback and / or credit ratios may be terminated at Visa’s discretion. Please Note: Your ratios at all IPSP’s will be evaluated by Visa.
· The credit card descriptor on the cardholder’s statement must be the IPSP’s name, as well as the Sponsored Merchant’s identifier, such as your company code.
· The IPSP’s Join Form must disclose the IPSP’s name and the fact that the billing descriptor will be the name of the IPSP and the Sponsored Merchant’s identifier.
· IPSP’s will display, on the Join Form, their Privacy Policy along with Terms and Conditions.
MasterCard
· The MasterCard logo cannot be displayed on the client’s sites.
· Several other rules will be changed and we will advise you as soon as these are solidified.
October is the month to implement these changes. We expect the transition should be a relatively smooth process. The following is a timetable for preparing for the November 1st deadline:
· By October 8th, we will begin the Visa registration process. We will email you a form, which must be completed immediately.
· By October 15th, we will have a Privacy Policy up on our Join Pages.
· By October 15th you must have all MasterCard logos removed from your sites.
We will provide you with additional updates on these initiatives throughout the month. Thank you in advance for helping us to ensure the successful implementation of these new regulations. Please be assured that we, as IPSP’s are working together to provide a more robust industry environment and to attempt to have our client’s voices heard at the card associations. We have many common goals and interests. Maintaining the viability of the adult Webmaster business model, by keeping you informed, is our primary focus.
Sincerely,
iBill, CCBill, and EPOCH / Paycom
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10-03-2002, 04:13 AM #2Web Hosting Master
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So are they saying you have to pay $750.00 and a $375.00 yearly fee in order to have an account with them?
If so I would say they will not be in business long.
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10-03-2002, 05:59 AM #3WHT Addict
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Well this is certainly going to screw the small businesses! Don't these companies realise that small business makes up the larger sector of the whole business community?
Where did you get ahold of this message? Is it on any of their websites or Visas website?
--JoshJosh Powell.
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10-03-2002, 06:03 AM #4Web Hosting Master
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Looks like the usual crap that comes down from these larger institutions with no idea.
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10-03-2002, 10:15 AM #5
Well, I guess that definately makes merchant accounts cheaper now a days
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10-03-2002, 10:18 AM #6Web Hosting Master
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Originally posted by DanielP
Well, I guess that definately makes merchant accounts cheaper now a days
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10-03-2002, 10:34 AM #7Junior Guru
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VISA has not publicly noted this on their site (atleast I cant find anything differnt from my last visit). As a real account bearer not using a 3rd party I have not been notified from my partners nor visa/MC about this. I am aswell in a partnership with a company allowing mine to offer great rates on merchant accounts, and they have said or posted nothing regarding this matter. My business banker claims to have no knowledge of this what so ever.
Im not saying this isn't really happining, but I think its only those companies who were judged as a "IPSP", and apparently only these few big dogs were.....
Dont expect what ive said to be 100% accurate ive only just become aware of this situation, but ill keep posting what I findout becuase this topic has alot to do with us...
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10-03-2002, 10:39 AM #8Junior Guru
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I just callled the only number for Visa I could find, and the rep is not aware of any such new online merchant rules, and said the last she was aware of was last august. sounded like someone who wouldnt know though, looking for a visa business/merchant department number... anyone post if they find
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10-03-2002, 11:09 AM #9WHT Addict
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I get the feeling this is a hoax or is being taken out of context. Although these new rules might apply to a specific group such as adult webmasters or international customers which has not been mentioned within this notice.
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10-03-2002, 11:23 AM #10Disabled
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http://www.go****yourself.com/forumd...php?forumid=26
There is alot more info there including posts from the ceo of ccbill.
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10-03-2002, 11:24 AM #11Disabled
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bleh stupid kiddie censorship crap
remove the & to goto the url.
http://www.gofu&ckyourself.com/forum...php?forumid=26
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10-03-2002, 11:54 AM #12WHT Addict
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Hopefully, someone from another third-party processor will respond (i.e. 2checkout and hostcharge). If this policy happens across the board, it will have a serious impact on the hosting industry (especially for new startups who don't have the upfront cash). The underage hosts that can't get a merchant account will especially be affected (this might be a good thing and will slow the industry growth overall).
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10-03-2002, 12:11 PM #13Web Hosting Master
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anyone just reading this, I have changed my posistion, this is NO hoax!!
I still have my old Ibill.com account and was never informed of this. I get periodic newsletters from them still.
Here is a link to their news, nothing there about this, sure that was not a HOAX email or something??
http://www.ibill.com/about/archive.cfmLast edited by ljprevo; 10-05-2002 at 08:07 AM.
L. James Prevo - President/Owner
Prevo Network, LLC - http://www.prevo.net
Est. 1999 - Month to Month Billing!!
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10-03-2002, 12:26 PM #14WHT Addict
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I still believe this policy will be exclusively for adult webmasters and those third-party providers which offer merchant services to high risk industries. I was able to find this page regarding IPSP's here.
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10-03-2002, 12:57 PM #15Aspiring Evangelist
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Does this affect authorize.net?
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10-03-2002, 01:23 PM #16Aspiring Evangelist
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According to ipsp-faq.com (linked above):
VISA has created a new category of service provider considered to be “high risk” Internet Payment Service Provider’s or IPSP’s. An IPSP (ex: CCBill/Epoch/IBill) is an online entity that enters into a contract with an Acquirer (Merchant Bank) to shoulder financial responsibility and liability for “high risk” Merchant Accounts, by which registered Sponsored Merchants (ex: Website Owners) are allowed to process and settle Internet transactions.
VISA considers any downloadable, Digital Internet transaction, or Merchant Category Code 5967, as a “high risk” IPSP and Sponsored Merchant transaction.
Why wouldn’t it be more cost effective for a Webmaster to go out and get their own Merchant Account instead of continuing to use a Third Party Processor IPSP like CCBill.com for their VISA transactions?
“High Risk” merchant accounts are extremely expensive, and require a large amount of maintenance and support. The initial fees associated with opening a “High Risk” merchant account could surely meet, if not surpass VISA’s IPSP registration fee for Sponsored Merchants. In addition, owning and maintaining one’s own “high risk” merchant account can put added financial and operational strain on an online Company by requiring them to make major investments in Customer Support, Fraud Prevention and Automated Reporting.
In addition, once a “High Risk” merchant account is created, its owner and its operating URL’s are on VISA’s monitoring. If that same “High Risk” account is closed there after, the account’s owner and/or its operating URL’s will no longer be afforded the future opportunity to register within the umbrella of an IPSP portfolio.DatacenterHardware.com
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10-03-2002, 01:25 PM #17Web Hosting Master
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Originally posted by Benjamin
Does this affect authorize.net?
This looks like regulations for 3rd party processors.
I think this is going to get interesting as I was told I could not accept payment for others on my merchant account.
IE ibill.com accepting payment for others.
I think this is where this new class of merchant is coming from, so called a IPSP (Internet Payment Service Provider)
Dunno, anyone else care to comment?L. James Prevo - President/Owner
Prevo Network, LLC - http://www.prevo.net
Est. 1999 - Month to Month Billing!!
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10-03-2002, 01:31 PM #18Web Hosting Master
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Why would you want to get a merchant account from a 3rd party processor anyway? Why not go directly to the merchant bank and get one?
I never really understood why people do that. Could someone clarify?
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10-03-2002, 01:46 PM #19Web Hosting Master
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Originally posted by DD-SNC
Why would you want to get a merchant account from a 3rd party processor anyway? Why not go directly to the merchant bank and get one?
I never really understood why people do that. Could someone clarify?
If you are asking why people use a 3rd party processor (to collect money for you i.e. ibill, paypal, ccbill, etc) and not just get a merchant account, there are several reasons.
1. $ volume needed
2. Bad credit of the person needing a merchant account
3. small business just starting out.
4. Easier setupL. James Prevo - President/Owner
Prevo Network, LLC - http://www.prevo.net
Est. 1999 - Month to Month Billing!!
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10-03-2002, 01:55 PM #20Web Hosting Master
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Ahh..
I'm aware of how authorize.net works. I've used it before. We currently use CSI and Linkpoint though.
Other than bad credit, I still don't understand why people wouldn't opt for a real merchant account.
In comparison to 3rd party processors, a real merchant account's fee's aren't that much greater, if not cheaper.
We've been using CSI since our inception for the most part and when we first started, they weren't concerned about our monthly volume.
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10-03-2002, 03:31 PM #21Web Hosting Evangelist
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The fees and the registration will pertain to Adult Content type businesses.
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10-03-2002, 04:06 PM #22Junior Guru
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globill says these regulations dont apply to them
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10-03-2002, 04:20 PM #23Aspiring Evangelist
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If these fees and registration charges are just for adult-related sites, then why in the world did they write it as if ALL their customers would be charged this yearly registration fee? Their just plain and simply stupid if they don't downright tell us exactly what their trying to say! Weird.
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10-03-2002, 04:23 PM #24Aspiring Evangelist
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I should have said, "why in the hell," huh? Sounds better. lol
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10-03-2002, 08:05 PM #25Junior Guru Wannabe
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Just thought I'd throw in two cents about a few questions raised here. The notice was not a hoax; it was emailed to all subscribers, and has been posted within the members area of CCBill's site. They are doing this for all accounts, adult or otherwise. The $750 applies to each processor you use - if you use both iBill and CCBill, you have to cough up $1,500 for the first year.
This applies "only" to Visa and is not mandatory. CCBill will continue to handle billing for checks, Mastercard, etc. if you choose not to pay.
What sucks is that CCBill already holds back 5% of all sales for chargebacks and other problems. They should, at the very least, stop doing that immediately.