Quote:
Originally posted by Petr
KK, the only problem with the location is that it's really hard to do all the paperwork required to open a US company on such a short notice... hm...
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That is true Petr -- we were facing that same issue with the German company I mentioned above.
There are still a lot of questions and clarifications to be made to this.
For instance if a US processor has a merchant acct in England, does that processor now have to go and get only US merch accts. Or if that US processor can keep that English acct, can that English acct be used to process for clients in the Visa Euro region?
Is this going to be regional divisions or true country divisions? If it's regional then it may be that those with Antigua, Aruba, etc corps could possibly continue with their current processors who are US, if those processors had merch accts in those regions...
How does something like NAFTA affect the Canadian and Mexican sites if it is done by country and not region? Can Visa override a US law basically with a regulation that inhibits free trade between the countries involved in NAFTA?
See what I mean, there are soooo many variables, and quite frankly I think the actual enforcement of these rulings is where the money will be made or lost.
Also, what will happen to a processor who violates the rules? Will they be fined, will they be terminated, what if they didn't realize that someone was not from the correct region because that person lied on their paperwork and produced bogus documentation to get an account?
The principle here is sound. After all you can't operate a retail store with someone else's merchant account, and especially not someone else who is in a different country entirely. This is just a matter of Visa deciding to enforce what they have not previously with the regions/countries divisions.
As to their collecting money, well you have to pay them to get your own merchant account, and it's more than 500 bucks.