EukerVoorn |
10-08-2011 09:12 AM |
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Originally Posted by porn500
(Post 18476773)
1) One of the main benefits using a card processor is to have them look over the chargeback ratio. If I go over 1% on a merchant account, I'm fucked! With a third party processor I can always make up a plan to go below 1%, or even continue over 1% if they are nice and make money from my business. Chargeback paranoia is something I DEMAND that my processor have, then I feel safe.
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I hear you. But I have my own merchant account and the bank first warns me if chargebacks go too high and next step is paying more commission instead of being kicked off completely. And the third party procesorrors I work with don't really look at the chargeback ratio, they just show it to you in the dail stats and reports. But that's really something you can make yourself, even in excel.
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2) And the whole credit card system will be replaced by direct banking? Wow..you really think that will happened? So if that is true..what do you think will happened when fraudsters need to find a new business model and phishing sites are starting to grow up everywhere and compromise your direct banking? Let me tell you: chargebacks! And you will be in the same position as you are now and hope for a new system that will save the world...
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Uh... the benefit of direct bank debits is that chargebacks aren't possible. And I'm not saying that it will happen (soon). My comment was merely wishful thinking. Another alternative would be that online credit card transactions without Visa secure code aren't possible anymore and that once the credit card holder submits the secure code, a chargeback is not possible. I was talking to a payment processor the other day who charges 12% and doesn't even provide with secure code! Insane!
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Personally in a near future I don't think it will be possible for an online business to get an direct merchant account with a bank due to all risk,compliance and international KYC.
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I agree, and you forgot PCI. A full PCI server system costs $1500 a month.
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I bet you will only see third party processors out there... paypal, worldpay, bibit, google etc... and they will fight to have control over their chargebacks, even if it's credit card or direct banking chargebacks.....
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Would be great if PayPal would get their act together and accept online adult. They already accepted adult mailorder which is a good omen. But with PayPal you have the same problem... people can buy an account and when they downloaded everything, complain to PayPal and demand a refund. So when it comes to chargebacks I don't see an advantage in PayPal over credit cards.
I really hope we will get this global direct bank debit soon and I'm going to look into pay-by-phone again.
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