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Kimmykim · 10-02-2002, 08:15 PM

Here are a few numbers, and while it's been a couple months since I was in the processing side, I doubt that they have changed much.

Visa generally accounts for about 70% of credit card sales overall, followed by Mastercard with somewhere in the 25% range, and Amex, Discover, etc making up the difference.

Adult transactions for Visa are now well under 1% of their total business if the cumulative numbers for Visa's gross thruput I heard from last year are reliable, which I would believe they are.

Chargebacks on high risk transactions -- internet porn and gambling, along with telemarketing and a large portion of the travel industry (which are not so far as I know classed as high risk) -- make up a huge portion of chargebacks.

Chargebacks in these categories are nearly impossible to refute -- and the time it would take to have someone manually do all the documentation that the cc's require to reject a cb would outweigh the administrative cost assessed on accounts in good standing, meaning they are not being fined in addition to the admin fee.

Very few banks take high risk, and with the new Tier 1 capital requirements even fewer will be able to do so.

When a bank issues high risk merchant accts they are liable for any money the customer cannot cover -- i.e. a processor or web site goes out of business and has a huge chargeback situation, the bank must then cover it.

Visa/MC are geographic groupings of banks, i.e. Visa USA, Visa Latin America, Visa Europe -- and each of these organizations may, to some degree, set all their own rules. In certain cases they are bound by Visa International rulings which supercede their own decisions.

Should Visa International decide to remove a bank from a region, it is my understanding they can do so, therefore making that bank unable to issue cards or merchant accounts.

The most important thing in this situation is that ALL the Visas get together and discuss with each other, as well as with International, what they are going to do.

If I were a processor, I would be very careful what I did, since pissing off Visa USA or International is not a wise idea, especially if you are a business in the US trying to evade the rulings made by Visa USA. Don't think for one minute that Visa USA can't call up Visa Europe, Asia, International and say hey, you've got a merchant who's nothing but trouble, and cause plenty of problems for that merchant.

10-02-2002, 08:15 PM
Kimmykim bitchslapping zebras!!!!! Industry Role: Join Date: Jun 2001 Location: In a shack by the beach Posts: 16,015	Here are a few numbers, and while it's been a couple months since I was in the processing side, I doubt that they have changed much. Visa generally accounts for about 70% of credit card sales overall, followed by Mastercard with somewhere in the 25% range, and Amex, Discover, etc making up the difference. Adult transactions for Visa are now well under 1% of their total business if the cumulative numbers for Visa's gross thruput I heard from last year are reliable, which I would believe they are. Chargebacks on high risk transactions -- internet porn and gambling, along with telemarketing and a large portion of the travel industry (which are not so far as I know classed as high risk) -- make up a huge portion of chargebacks. Chargebacks in these categories are nearly impossible to refute -- and the time it would take to have someone manually do all the documentation that the cc's require to reject a cb would outweigh the administrative cost assessed on accounts in good standing, meaning they are not being fined in addition to the admin fee. Very few banks take high risk, and with the new Tier 1 capital requirements even fewer will be able to do so. When a bank issues high risk merchant accts they are liable for any money the customer cannot cover -- i.e. a processor or web site goes out of business and has a huge chargeback situation, the bank must then cover it. Visa/MC are geographic groupings of banks, i.e. Visa USA, Visa Latin America, Visa Europe -- and each of these organizations may, to some degree, set all their own rules. In certain cases they are bound by Visa International rulings which supercede their own decisions. Should Visa International decide to remove a bank from a region, it is my understanding they can do so, therefore making that bank unable to issue cards or merchant accounts. The most important thing in this situation is that ALL the Visas get together and discuss with each other, as well as with International, what they are going to do. If I were a processor, I would be very careful what I did, since pissing off Visa USA or International is not a wise idea, especially if you are a business in the US trying to evade the rulings made by Visa USA. Don't think for one minute that Visa USA can't call up Visa Europe, Asia, International and say hey, you've got a merchant who's nothing but trouble, and cause plenty of problems for that merchant.