MasterCard to stop third-party transactions

[Inde]

Just read this in USA Today. I'm surprised someone hasn't mentioned it yet. <br /><br />Anyone know more details? I wonder how this will affect new signups and old rebills.<br /><br /> <a href="http://www.usatoday.com/money/tech/2002-04-19-paypal.htm" target="_blank">USA Today article</a>

[pr0view]

ah, shit, that sucks... visa will follow soon, no doubt about it. that'd mean no 3rd-party processing any more - you either have your own merchant account or you're out of this business <img border="0" title="" alt="[Frown]" src="frown.gif" />

[WiredGuy]

Are 3P processors considered to be the likes of Globill, CCBill, iBill, etc? Seems to me these 3 companies alone make up a majority of all adult business so it would be telling the above companies to go out of business and we're going to take your customers or else they won't process any credit cards. This seems ridiculous to me to throw away millions of dollars.<br /><br />WG

[*Kimmykim*]

If you believe everything you read, then I've got some ocean front property here in Arizona <img border="0" title="" alt="[Wink]" src="wink.gif" />

[ezwink]

I agree with Kim-- "unless a settlement is reached" it says in the article....trust me...with money on the line, a settlement will be reached. This is probably some guys idea of how to set up a better negotiation...

[IronManX]

Hmm. This seems ripe for Anti-Trust action from the Federal Gov't. This screams of anti-competitive behavior.<br /><br />&gt;&gt;&gt;Quote<br />Unless a settlement is reached, on May 1 Internet merchants and other mom-and-pop firms that rely on third-party billing could miss out on sales via the USA's No. 2 online credit card<br />&gt;&gt;&gt;end Quote<br /><br />Shit this fucks up the majority of the net. I think MC and Visa just want in on the 13% fees from CCBill and others and want to ensure they are not gradually made obsolete by PayPal. <br /><br />Not this year, but in 10 years, when the costs of running an online bank effectively will be drastically reduced. ACH transfers will become much more acceptable as you can see your account information immeadiately online. <br /><br />Wal-mart uses ACH information right now, so you can just tell them your checking account info and they fill out the rest for you.<br /><br />At that point what is the difference between a credit card and using ACH to access your line of credit from your bank?<br /><br />Interesting...

[*Kimmykim*]

</font><blockquote><font size="1" face="Verdana, Arial">quote:</font><hr /><font size="2" face="Verdana, Arial">Originally posted by IronManX:<br /><strong><br />Shit this fucks up the majority of the net. I think MC and Visa just want in on the 13% fees from CCBill and others and want to ensure they are not gradually made obsolete by PayPal. <br /><br />At that point what is the difference between a credit card and using ACH to access your line of credit from your bank?<br /><br />Interesting...</strong></font><hr /></blockquote><font size="2" face="Verdana, Arial">MC and Visa already collect their fees, and they are quite substantial. If we didn't pay them we certainly wouldn't be charging 13% <img border="0" title="" alt="[Wink]" src="wink.gif" /> <br /><br />Paypal relies as much on MC and Visa as they do on ACH -- the problem with Paypal is that they are a completely unregulated entity dealing in a virtual currency that they control. They don't qualify as a bank, they don't qualify as a PSP, they simply exist. <br /><br />The main difference between a credit card and ach is that you have to have the money up front with the ach transfer, it's not credit <img border="0" title="" alt="[Wink]" src="wink.gif" />

[blind]

Hehe, I hope Mastercard doesn't plan on staying in business after fucking all of the third-party mastercard processors in the ass...

[bigdog]

lol kimmy kin

[WiredGuy]

</font><blockquote><font size="1" face="Verdana, Arial">quote:</font><hr /><font size="2" face="Verdana, Arial">Originally posted by *Kimmykim*:<br /><strong>If you believe everything you read, then I've got some ocean front property here in Arizona <img border="0" title="" alt="[Wink]" src="wink.gif" /> </strong></font><hr /></blockquote><font size="2" face="Verdana, Arial">Really! That would be perfect!<br />Hehe... I just read the article (I didn't notice there was a link) and it mostly seems to be pressure on PayPal rather than what I was thinking of 3P processors. My guess is that people have been sending each other cash via credit cards and MC is upset that they're not getting interest on cash advancements versus real purchases.<br /><br />WG

[lisa-the-slut]

Kimmykim,<br /><br />Will CCBILL or any third party be able to take MC after May 1?<br /><br />Please don't give the answer:<br /><br />"If you believe everything you read, then I've got some ocean front property here in Arizona"<br /><br />Should I start looking for sponsors that use their own merchant accounts?? <img border="0" title="" alt="[Confused]" src="confused.gif" /> <br /><br />Lisa

[*Kimmykim*]

</font><blockquote><font size="1" face="Verdana, Arial">quote:</font><hr /><font size="2" face="Verdana, Arial">Originally posted by WiredGuy:<br />Hehe... I just read the article (I didn't notice there was a link) and it mostly seems to be pressure on PayPal rather than what I was thinking of 3P processors. My guess is that people have been sending each other cash via credit cards and MC is upset that they're not getting interest on cash advancements versus real purchases.<br /><br />WG</font><hr /></blockquote><font size="2" face="Verdana, Arial">Bingo.<br /><br />Lisa, if CCBill (or I would hope any other processor) were ten days roughly from not being able to process your transactions, letters would be going out to clients. We are no longer counted as a third party processor under Visa regulations, they've made a new category called Payment Service Providers, and we've been moved into that category.

[lisa-the-slut]

Kimmykim,<br /><br />Thank you for your reply!!! <img border="0" title="" alt="[Big Grin]" src="biggrin.gif" /> <br /><br />Lisa

[Yo Adrian]

A settlement will certainly be reached. If they really are talking about all 3P processors than the impacts of them all going down on May 1st would be huge, and we would all be hearing of alternate payment systems through our sponsors. From what I read it does seem to be focusing on PayPal.

[IronManX]

Interesting KK<br /><br />Do you know how much more/ what concessions MC is trying to extract from Pay Pal et.al?<br />&gt;&gt;&gt;&gt;<br />At that point what is the difference between a credit card and using ACH to access your line of credit from your bank?<br />&gt;&gt;&gt;&gt;<br /><br />Can you use ACH to access a line of credit from a bank or is this a separate transaction?<br /><br />Thanx<br />&lt;/IMX&gt;