Just got it from Rand at Epoch:
"Monday September 22, 2003
The New Ratio's are Coming...
In early July, we informed you of the upcoming changes to Visa's chargeback rules.
The date in which the new rules take effect is Wednesday October 1, 2003.
Your program, your very business, depends upon your ability to remain compliant
with card association rules. The majority of programs operating in this industry are
well within the ratio's required by Visa and MasterCard. Others are dangerously
close to exceeding the established ratios or have yet to meet them. Regardless
of any rumors or hearsay, the new Visa ratios go into affect in nine days. I am
including the following as a reminder.
The New Ratios
The new chargeback ratios that affect Sponsored Merchants are as follows:
1% overall Chargebacks to Interchange Transactions. This rule is effective 10/01/03.
All ratios are measured on a monthly basis on each Master Code (contract) and are
based upon the number of chargebacks and transactions, not the dollar amount.
These ratios are applicable to all IPSP's (Internet Payment Service Provider) and to
every Sponsored Merchant processing in Visa USA. (Visa International is also
expected to adopt these guidelines) .
Penalties For Failure To Comply
There are severe economic penalties for violation of the ratios. Those programs
exceeding the ratio may pay significant fines in the near future. Failure to become
compliant will result in the termination by Visa of your ability to accept Visa.
This means that your URL's, as well as your corporate name and the name of
the responsible party as listed on your Visa Registration, will be placed on the
Terminated Merchant File ("TMF").
The Status of Your Account
Epoch has worked very closely with it's clients to help insure those programs
willing to help themselves found the help they needed from us. If you have a
concern about your particular program, you may reply to this email with any
questions.
---Rand at EPOCH
Director of Corporate Communications
[email protected]"