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Rolo · 01-02-2003

International credit cards merged with local debit cards (the 2 cards on 1 card solution is used by some European banks) also have a higher % chargeback, then normal credit cards. This is because the issuing bank typical use the "2 in 1" card as a debitor card, so that transaction made with the "credit card" part is deducted from the cardholders bank account the same day. In that process some banks do not pass the information regarding who have made the charge (ex. IBill*Company*), and they also convert the dollar ammount to the national currency using the bank´s own conversion rate.

Insted of what a normal US credit card subscriber sees on his credit card statment, then a european subscriber using a "2 in 1" card solution would see something which has no direct connection to with the subscription (except that it is a VISA or MC transaction). Ex. this is how the same transaction could show up on a US and European subscriber statement:

11/11/2003 - IBILLCS.com*Company 800.307.3558 $39.95 (US subscriber)

11/11/2003 - Visa Charge #1 €37.72 (European subscriber)

Now the european subscriber has no way of knowing who that charge is from, and ammount he probably also would not recognize. Then imagine if that european subscriber is using his "2 in 1" card to buy multiple subscriptions online, and that he forgets to cancel 1 or 2 of them... now my guess is that at some point he will feel like he has lost control of his bank account (remeber he does not get a seperate account at his bank - they are using his main account), since the charges are made the same day (debitor card) without him having any way of knowing who charged him (Visa charge 1, 2, 3 etc.). He will call his bank, and then the whole process of pending chargebacks starts

Now a way to determine which subscribers are using "2 in 1" cards would be good, and also build a list of known "2 in 1" cards that will have a bigger chargeback %. This could be done at signup page at the processor -making new subscribers choosing what kind of card they are using - give premade made options based on which country the subscriber is from.

If thats not possible, then we probably have to live with the fact that some surfers are holding "2 in 1" cards, which are more likely to chargeback then normal credit cards.

01-02-2003	#3
Rolo Members Join Date: Dec 2002 Location: Six Feet Under Posts: 2,150	International credit cards merged with local debit cards (the 2 cards on 1 card solution is used by some European banks) also have a higher % chargeback, then normal credit cards. This is because the issuing bank typical use the "2 in 1" card as a debitor card, so that transaction made with the "credit card" part is deducted from the cardholders bank account the same day. In that process some banks do not pass the information regarding who have made the charge (ex. IBillCompany), and they also convert the dollar ammount to the national currency using the bank´s own conversion rate. Insted of what a normal US credit card subscriber sees on his credit card statment, then a european subscriber using a "2 in 1" card solution would see something which has no direct connection to with the subscription (except that it is a VISA or MC transaction). Ex. this is how the same transaction could show up on a US and European subscriber statement: 11/11/2003 - IBILLCS.com*Company 800.307.3558 $39.95 (US subscriber) 11/11/2003 - Visa Charge #1 €37.72 (European subscriber) Now the european subscriber has no way of knowing who that charge is from, and ammount he probably also would not recognize. Then imagine if that european subscriber is using his "2 in 1" card to buy multiple subscriptions online, and that he forgets to cancel 1 or 2 of them... now my guess is that at some point he will feel like he has lost control of his bank account (remeber he does not get a seperate account at his bank - they are using his main account), since the charges are made the same day (debitor card) without him having any way of knowing who charged him (Visa charge 1, 2, 3 etc.). He will call his bank, and then the whole process of pending chargebacks starts Now a way to determine which subscribers are using "2 in 1" cards would be good, and also build a list of known "2 in 1" cards that will have a bigger chargeback %. This could be done at signup page at the processor -making new subscribers choosing what kind of card they are using - give premade made options based on which country the subscriber is from. If thats not possible, then we probably have to live with the fact that some surfers are holding "2 in 1" cards, which are more likely to chargeback then normal credit cards.