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  1. #1
    Join Date
    Jun 2002
    Location
    So. California, US
    Posts
    28

    Is paypal going to start charging $750 app. fee?

    Is paypal going to start charging $750 app. fee?

    I recently got a disturbing email from iBill and wanted to see if anyone else has information on this. Basically what the email stated is that iBill was going to begin to charge a $750.00 registration fee and $375.00 per year thereafter.

    I called iBill to inquire and they told me that beginning in November, Visa and MC are going to require all Internet Payment Service Providers (IPSPs, including those like paypal and clickbank) to pass through these types of fees to their small merchants.

    If this is true, we should revolt. I think it will put tens of thousands of small merchants out of business. It would be a shame. Does anyone else here know more about this? Here's a copy of the email I received...


    ****************Start of Email******************
    Dear iBill Client,

    I would like to update you on several new Visa and MasterCard regulations
    that will affect the way iBill and all other Internet Payment Service
    Providers (IPSP) and their clients conduct business. Both credit card
    associations now will require a unique set of operating guidelines that must
    be implemented by November 1st. Under new rules adopted by Visa, iBill will
    be considered an IPSP that provides services to Sponsored Merchants (iBill
    clients). In contrast, MasterCard will consider iBill the merchant that
    supplies the goods and services of its clients.

    It is our mutual responsibility to ensure that we fully comply with all
    regulations implemented by the card associations. iBill is committed to
    seamlessly implementing the new regulations while retaining a business model
    that is good for our company and our clients. Below is a summary of the
    requirements for Visa and MasterCard that we must implement by November 1st:

    VISA
    * Each Sponsored Merchant must complete a registration form
    that iBill will submit to Visa on their behalf.
    * Visa and our processor will require an initial registration
    fee of $750; $500 will be paid to Visa and $250 to our processor.
    * Visa and our processor will require an annual registration
    fee of $375; $250 will be paid to Visa and $125 to our processor.
    * Sponsored Merchants must be approved by Visa before we can
    begin processing Visa transactions.
    * The pay page must present the client's country of domicile.
    * iBill must provide Visa with monthly sales, chargeback and
    refund data on each Sponsored Merchant for Visa's review. Sponsored
    Merchants not performing to Visa standards can be terminated directly by
    Visa.
    * The credit card descriptors must pass iBill's name, as well
    as the Sponsored Merchants name. Sponsored Merchants will have 10
    characters to identify their name ie: iBillCS.com*Merchant Name
    * iBill pay pages must include the following language: "iBill
    is a designated payment processor for Merchant Name. iBillCS.com*Merchant
    Name will appear on your cardholder statement."
    * Sponsored Merchants must display their privacy policy on
    their site. iBill will provide a web resource to assist clients in adopting
    a privacy policy.
    * Sponsored Merchants will need to update each of their master
    accounts client email address with a single email address. This will help
    iBill create a single identification number for your business.

    MasterCard
    * The join page that resides on our client's server can no
    longer negotiate any aspect of the transaction. iBill will provide all
    clients with a standard join page format that our compliance group will
    approve for account activation.
    * Selection of specific purchase options for goods and
    services will occur on a join page on iBill's servers.
    * iBill must allow for consumers to make purchases from
    multiple iBill client sites. iBill will support a consumer portal and all
    clients will be required to register their sites on the portal.
    * At the time of checkout, iBill must offer the consumer the
    ability to make additional purchases. iBill receipts will now contain a
    link to this portal for additional consumer purchases.
    * MasterCard logos cannot be displayed on the client's
    servers.

    October will be a month of change for all of us, though we expect the
    transition should be a relatively smooth process. Following is a timetable
    for preparing for the November 1st deadline:

    * By October 14th, iBill will begin the Visa registration and
    MasterCard portal sign-up process.
    * By month end, clients will need to have a privacy policy up
    on their site and have implemented the new MasterCard sign-up process.

    I will provide you with additional updates on these initiatives throughout
    the month. Rest assured that your iBill account manager or our client
    service team will be available at every step of this process if you have any
    additional questions or need support in making these changes. Thank you in
    advance for helping us to ensure a successful implementation of these new
    regulations.

    Sincerely,

    Garrett M. Bender

    ****************End of Email******************

  2. #2
    Join Date
    Jun 2001
    Location
    Denver, CO
    Posts
    3,301
    From what everyone has been saying, no, this fee is not *yet* applicable to people who accept PayPal.
    Jay Sudowski // Handy Networks LLC // Co-Founder & CTO
    AS30475 - Level(3), HE, Telia, XO and Cogent. Noction optimized network.
    Offering Dedicated Server and Colocation Hosting from our SSAE 16 SOC 2, Type 2 Certified Data Center.
    Current specials here. Check them out.

  3. #3
    Join Date
    Nov 2001
    Location
    Kansas City, Missouri
    Posts
    265
    What is interesting, is local banks here in Kansas City, Missouri are starting to charge a "Annual Fee" to carry the Visa Check Card. Now that is going to far, as you can carry a real visa without any fee, and they still do the credit checks to my knowledge just to get the Visa Check Cards......
    ICQ:176143736

  4. #4
    Join Date
    Jun 2002
    Location
    So. California, US
    Posts
    28

    I've sent inquiries to the other IPSPs. We'll see.

    Hi,

    I've sent off a few inquiries to Paypal and Clickbank. We'll see. My theory is that VISA / MC wants to squash the idea of merchants not having to pay monthly minimums. Sure there is more risk in online transactions and that is their justification, but I'll bet we are seeing the beginning of a trend. I'll report any responses I get here.

  5. #5
    Join Date
    Nov 2001
    Location
    Kansas City, Missouri
    Posts
    265
    Well, that and the fact that they (Visa, not Mastercard) are under a major Anti-Trust Class Action Lawsuit right now (we are getting notices on this every day) so someone has to pay for that....

    So if they add this fee, and start charging annual fees on thier check cards, they might have enough more free money laying around to pay for that lawsuit.

    Just information, we use Wells Fargo Merchant Services now, instead of these payment processors, and we have had NO information that they or us are going to be effected, and they have the Internet Gateway also (less fees too, plus cheaper all the way around with our volume at this point).

    Something just does not seem right with all of this, that some are going to get hit with the fee, and some are not going to get hit with it.....

    Can not wait to see how this all unfolds. It could make taking checks and money orders a whole better option for alot of companies that can not (for whatever reasons) get a actual merchant account for themself.
    ICQ:176143736

  6. #6
    Join Date
    Jun 2002
    Posts
    61
    Geez $750 seems a bit steep!!
    Chinthaka Wickramaratna
    http://www.M6.net
    multi-account windows hosting packages

  7. #7
    Join Date
    Jul 2002
    Posts
    541
    Well, there will always be places like 2checkout, where they use their merchant account and everyone sort of piggybacks them.

    And with 2checkout's policy of not allowing sites that make risky transactions like porn, dss, etc - my understanding is that they won't be liable for the extra fees that ibill and ccbill and whomever else does allow the risky transactions.

    -Wc-

  8. #8
    Join Date
    Jun 2002
    Location
    So. California, US
    Posts
    28
    I just got a response from Globill. They said that for them it is business as usual for now. Made it seem like they do not plan this type of increase.

    It looks as if it may just be for adult content.

  9. #9
    Join Date
    Jul 2002
    Posts
    541
    Yeah, little extra outlay for the pornstars to pass off to the enduser.

    oh well, too bad for them.
    -WC-

  10. #10
    This is what happens when Ebay takes over

  11. #11

    Visa/MC New Charges

    Well if this is true, why would anyone opt to go with IBill, it would just be cheaper to get your own merchant account and pay a 10 dollar processing fee per month, and the actual charges would be alot cheaper than going thru IBill

    Just my opinion

    Tom
    DWS CENTER LTDA--http://www.dwscenter.com
    Web Hosting, VPS, Dedicated Servers, Low Cost Domains!!
    US, UK, Netherlands & Asia!!!

  12. #12
    Join Date
    Feb 2002
    Location
    Australia
    Posts
    24,009
    if PayPal did change that fee for their "members", their number of members would slide by 99.9995%
    AussieHost.com Aussie Bob, host since 2001
    Host Multiple Domains on Fast Australian Servers!!

  13. #13
    Why did you name the thread as if its only PAYPAL...

    When in your POST you mention whats going on with IBILL?

    Regards
    Phillip
    www.SURRENDERONLINE.com.au
    Perfect Solutions Every Time! Sydney Based :: Dedicated Servers :: Colocation :: Superior Support::Reseller Solutions

  14. #14
    Join Date
    Jul 2002
    Location
    Orlando Florida
    Posts
    538
    I hope paypal dont start charging a outragous fees like that. It will make eBay go under.

  15. #15
    Originally posted by Netbridge
    This is what happens when Ebay takes over
    eBay has nothing to do with this.

  16. #16
    Join Date
    Jul 2002
    Location
    Orlando Florida
    Posts
    538
    Okay where is that paypal guy that always post on these forums...we need him here to clear this stuff up for us...!

  17. #17
    Join Date
    Jul 2002
    Posts
    541
    What are you talking about? Like the poster previous to you, this isn't a Paypal thing.

    This is a porn website/ibill/ccbill thing. If you don't have a high risk commerce website, you are okay. If you are selling webhosting and domains, that's not high risk, and that's fine.

    These high risk type sites aren't eligible for 2checkout - so Tom has said that all customers at 2checkout are not going to see that extra fee.

    -WC-

    ps: btw: you are talking about paypaldamon, I think is his name.

  18. #18
    Join Date
    May 2001
    Posts
    264

    Cool Hi,

    Hi,

    This is what I know (gathered from someone that handles the relationships with the card companies):

    Visa's new policies actually have two distinct sections, one which relates to adult merchants and one for all others. The fees described below apply only to adult merchants (MC has similar fees for adult).

    We will be sending out similar notice to the small population of adult merchants in our system, but all non-adult merchants are not impacted in any way.
    Damon
    PayPal Consumer Relations

  19. #19
    Join Date
    Aug 2002
    Location
    Orlando, FL
    Posts
    46
    Originally posted by NodeHost
    Well, that and the fact that they (Visa, not Mastercard) are under a major Anti-Trust Class Action Lawsuit right now (we are getting notices on this every day) so someone has to pay for that....
    Actually both Visa and MasterCard are under the Anti-Trust Class Action Lawsuit, at least according to the information we are reeiving on a regular basis regarding the matter.
    Kimberly
    http://adultdata.net

  20. #20
    Join Date
    Nov 2001
    Location
    Kansas City, Missouri
    Posts
    265
    I apologize then, the material that I was getting did not mention the MasterCard company in the lawsuit. I just did not want to provide information that I could not backup into my post.

    Thanks.
    ICQ:176143736

  21. #21
    Originally posted by flitcher


    eBay has nothing to do with this.
    nor does paypal. i've heard so much "bad" regarding them lately that i got spooked and cancelled my account. funny thing tho, the links that lead to where people go to make a payment to me via paypal are still active even though the account is long since cancelled. i sure wish that i could access that old site to take those links down...

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