Quote:
Originally Posted by SilentKnight
An excerpt from our latest email from "Sarah" at Verotel:
In our case, nearly 100% of all DDEU transactions made over the course of the past three years have been canceled/bounced/refunded by the merchant bank. I have great difficulty believing 100% resulted in chargebacks. At this stage I'm suspecting either the merchant bank or Verotel isn't reporting all the facts.
I still say this smells like the iBill fiasco a few years back. I'd wager the (German) banking partner simply isn't paying Verotel for the transaction and withholding the funds for some reason.
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I asked this same question over the phone, she said that the word spread that this is the way to get free access to sites and a lot of people were abusing it so that's why such high percentage of chargebacks.
Please somebody ask if you talk to her how does she explain such a high % of chargebacks for DDEU transactions and see if she says the same thing.
It sounds very fishy to me. I looked over the transactions affected and I don't see any increase in amount of chargebacks from 06 to 08 which I would expect as more and more people found out about it.
I also don't see the pattern I would expect to see if those people knew they were getting site access for free. They join the site, cancel, that's about it, sometimes join another site, then cancel that after a while etc. Pretty normal pattern. If they knew it was free, why not join all the sites (I have several sites with the same fetish) and stay member as long as you can, since you know its free.