Quote:
Originally posted by collegeboyslive
this just posted at ibills site:
September 30, 2004
The dispute with First Data is currently affecting our ability to pay our clients. We are working to get this issue resolved so that we can resume our regularly scheduled payouts. We will post a daily message on CMI to keep clients up to date on the status of this issue.
We know how serious this matter is to you. Please be assured that everyone here at iBill is working diligently to correct these matters so that we can all return to business as usual.
The next update will be posted tomorrow, Friday October 1, 2004 at 4:00 p.m.
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This precisely what IBill did. Spent the money, got a new building etc. Their business model is based on spending settlement funds otherwise belonging to their webmasters upon receipt, instead of keeping them as trust funds, while relying on future settlements to pay past debts.
First Data did not freeze all their accounts. They merely withheld 1 week worth of transaction when they found out the way IBill was operating.
If Ibill had been operating properly, all funds would be in trust accounts and they would only operate with their 15% or so fee. The payout problem would therefore only involve one week of credit card transactions, and not 2 weeks, 2 weeks of checks, two weeks of web 900 and one month of reserve.
An assessment was issued on the subject by Grant Hutchison of Militis Intelligence Corp, (
[email protected]). You can ask him for a copy.