Quote:
Originally posted by Kimmykim
Almost correct.
Third party processors have had to stay in line since then or out they go, like Sypro, Digiblaze, etc.
Website owners with large volume and their own merchant accounts playing internet cowboy caused this.
Banks are sick of getting burned by pornographers, gambling site owners and other high risk transaction companies.
There is a reason it's called high risk.
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Website owners with their own merchant accounts are easy to deal with. If your merchant bank isn't happy with your results, out you go. But when you're a 3rd party processor who's processing millions per month via several different domestic & offshore merchant accounts, it's easier to stay afloat longer than 1 "high risk" account who has been at 5+% chargebacks for 6 straight months.
3rd party processors have resources, connections, legal teams, shuffling ability, etc... that can help sustain them in this industry, whereas a Joe Schmoe with his own merchant account only has his chargeback rate. If that's too high and making the bank displeased, your days are numbered.