Quote:
Originally posted by Colin@Nov 15 2002, 02:26 AM
Hi KK,
Please define "small" and "normal business".
Thanks! :-)
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What I would call small are people doing a few hundred joins a day or less. What I would call normal are people that have clear customer service links, don't make it impossible for the surfer to cancel, have web sites that actually work (yes, I know it sounds odd, but believe me many a website is broken lol), etc.
What Visa AND the acquiring banks are tired of is companies coming in, doing thousands of joins a day and then having problems with it. When someone calls their bank to get a chargeback initiated, it takes admin time (which equals money, even if it is at ten bucks an hour) to generate the paperwork, get it to the appropriate parties (and alot of it is still done with paper, especially where the customer is concerned when it is done correctly), then Visa has to basically escrow the money out of the merchants account while allowing the surfer to use the money, until the merchant either disputes the charge back or does not respond and the cb goes thru.
When a high volume merchant loses their account, they normally go and start the process again with a different back, and the problem escalates rapidly. I'll go into detail if you like but I'll leave it with the short answer for now, which ends up with the merchant hiding in third party while they acquire more merchant accounts, or disappearing into third party for good, usually keeping the same chargeback problems at the third party as they had with their own merchant account...