05-12-2003, 08:36 PM
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Confirmed User
Join Date: Jan 2002
Location: Marina del Rey, CA, USA
Posts: 679
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Quote:
Originally posted by Kimmykim
Let's do a little simple math here and perhaps it will shine some light for some of you on how this equation works.
The rule is in regard to having a credit ratio higher than your cb ratio and going over the 1% allowable on a combination of the TWO if MC chooses. (Don't get me started on the settlement that Visa and MC just got where they owe about 3.5 BILLION bucks to the plaintiffs, or WHY they might be looking for money anywhere they can find it...)
So you are cruising along, and your chargeback rate is .495... this is slightly under ONE HALF a percent... no problem you think to yourself, I have a shitload of maneuvering room here, I'm way under, my clients are happy, my CREDIT ratio is .525...
Well, guess what? At MC's discretion, you just busted the cap of 1% combined, AND your credits outweigh your chargebacks...
Guess what? Maybe you'll get fined. Maybe you won't.
If you're doing a couple hundred transactions a month you really aren't going to put them into high cotton if they start slapping $100 per credit or cb fines on you, or if they lump sum fine you... the volume isn't there.
But if you do thousands upon thousands of transactions per month, I guess they'd look at it differently now wouldn't they?
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At the end of the day, my money says that Epoch isn't the only one facing this problem. Just speculation, but as I said, I'd bet on it, if all companies were making public these figures.
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This is why I love KK. She is smart, to the point and she just ?gets it?. In my opinion, she is one of the smartest people in this business and I am proud to have her associated with ePassporte and to call her a friend.
Thanks KK.
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