VISA Regulations?

wsjb78 · 07-04-2003, 12:12 PM

I heard some rumors that from october VISA will tighten once more their regulations regarding CC processing in the adult business...
Anyone got more info?

07-04-2003, 12:14 PM

Is that only Visa USA ?

Why don't you unashamedly spread the whole, unedited rumor ?

wsjb78 · 07-04-2003, 12:18 PM

I did not post more of what I heard until some other sources tell me they heard the same things... I don't like to spread panic hypes!

Cyndalie · 07-04-2003, 12:29 PM

Here's what's up

Visa announced on July 1 to IPSP's that new regulations will take effect on October 1, 2003 regarding acceptable chargeback levels for Sponsored Merchants; dropping the acceptable rate from 2.5% to 1% for domestic transactions. Acceptable chargeback rates for foreign transactions will drop one-half percent from 2.5% to 2.0%.

PSW Billing Press Release: July 3, 2003

PSW Billing Responds to New Visa ChargeBack Regulations
http://pswbilling.com/press/20030703-pr-visa1.shtml

Related Article! *NEW* By Cyndalie

The 1% Difference: Taking Steps Towards Reducing Chargebacks
http://www.pswbilling.com/articles/2...fference.shtml

I hope this information helps to answer some of your question regarding this news.

Cynd

wsjb78 · 07-04-2003, 12:38 PM

Thx Cyndalie!

Cyndalie · 07-04-2003, 12:46 PM

You got it babe!

No need to panic, just take action!

Ronaldo · 07-04-2003, 12:55 PM

Good information Cyndalie!

NetRodent · 07-04-2003, 07:03 PM

I haven't completely considered the ramifications of this development but I have noticed a few interesting things...

1. Trials ($1.95) are never charged back (actually 0.004%)

2. The largest percentage of chargebacks / sales occurs on the first rebill. Subsequent rebills are a little over half as likely to be charged back.

3. A disproportionate number of chargebacks occur on accounts with incorrect email addresses.

4. While cross sells are more likely to be charged back, most of the time a chargeback for a cross sell also yields a chargeback for the original purchase.

07-04-2003, 11:03 PM

At Spread4U we've been preparing to beef up our fraud-scrubbing for a few months now, even before Visa announced the new regulations. We're quite confident that 1% won't be a problem.

B

linkyd · 07-05-2003, 03:43 PM

I just wonder how the adult industry would survive if credit card billing becomes so regulated that it slows down rebills to a trickle.

eMystic · 07-07-2003, 02:57 PM

The whole Visa/credit card thing is rather unsettling, especially when you consider that the credit card companies can literally shut you down at their discretion. Fortunately there are alternatives.

You might want to consider DigaPay. They're brand new, and I think they've stepped up to the plate specifically to address the tightening credit card issues facing the adult entertainment, casino & MLM industries. DigaPay welcomes Adult businesses (as well as any other business), and they promise not to freeze your account, except for fraud or spamming. If you study their marketing and their policies, it looks like they're specifically going out of their way to address most of the shortcomings of a lot of the existing payment solutions out there.

You can read more about them at DigaPayAffiliate.com

Regards,

K.

Blacker · 07-08-2003, 12:23 PM

Interesting site (digapay.net) ... whats the catch

wsjb78 · 07-08-2003, 12:31 PM

Quote:

Originally posted by Blacker
whats the catch

I don't think he'll tell you!

eMystic · 07-08-2003, 01:58 PM

So far as I can tell, there is no catch, at least not for the merchant. The only potential problem a merchant might have is if they are conducting fraudulent activities, or start sending out all sorts of spam regarding the DigaPay service to get referrals in their affiliate line.

Now, consumers must understand that all transfers of credits are 'final'. If they buy something, and they decide they don't like it, but were given what they were told they would be given, they can't expect DigaPay to do a reverse credit. They would have to prove criminal fraud by the merchant to get a 'chargeback'. Just because they decide they don't like the quality of what they bought doesn't give them a right to a refund by DigaPay. "Refund policies" are entirely up to the merchant, so the customer would have to ask the merchant for a refund. As far as merchants are concerned, this actually works in their favor. Granted, this doesn't mean merchants should treat their customers like shit, because they'll just end up alienating everyone and go out of business. But it does help adult and casino websites to avoid problems with dishonest customers.

DigaPay policies clearly favor the merchant. So if there is a 'catch', it's the "buyer beware" aspect. The customer has to be more diligent about their purchases. But shouldn't that be their responsibility anyway?

Otherwise, it's more or less like PayPal, without all the restrictions and headaches.

Technically, the 'products' you are buying are DigiPal 'credits'. That's perfectly acceptable to credit card companies. What you do afterwards with your 'credits' can't be governed or regulated by the Credit Card companies. So you can trade them for whatever you want within the DigiPay 'merchant community', including adult entertainment, casino chips, etc.

As far as I can tell, it's on the up and up. They're still configuring a few features and ironing out a few kinks, because they're just getting started. But once everything is in place, I think it's going to take off big time.

Regards,

Katherine

P.S. Hey, if you decide to sign up, please sign up under me...PRETTY PLEEEZE...

http://www.DigaPayAffiliate.com or https://www.DigaPay.net

NetRodent · 07-08-2003, 02:04 PM

Why is DigaPay better than Storm Pay,Fire Pay or Epassporte?

eMystic · 07-08-2003, 02:35 PM

I'll take a look and see what he differences are. I'm not completely familiar with all of those services. I'll get back to you on that.

Regards,

Katherine

Mister X · 07-10-2003, 01:10 PM

Any and all of those services are probably just fine. The main problem with them all so far is that their rollouts have been moving at about the speed of the average glacier. I think that until someone with the resources to actually push their product, after the original hype, comes along, none of them are really gonna take off.