Glo-Bill.com response to CCBill
 

Ron,

Thank you very much for your opinion on our corporate strategy. You have spun an interesting projection based on your understanding of the new rules and based on your experience running one of the best third-party billing companies on the internet (no sarcasm, I mean that, btw). But there are some incorrect assumptions in your post that I would like to point out. Most importantly, I can assure that Glo-Bill is NOT misinformed about anything.

Without giving away the full game-plan on our strategy, I will say that it revolves around more than a simple jurisdictional issue. It were simply jurisdictional then, as you pointed out earlier, all third-party billers would have simply moved to some other country. We did our homework for months and implemented what we feel is the best all-round solution. Under the CURRENT rules, Glo-Bill forsees no problem with its current business model and it is business as usual for us. We are not employing a "run, hide and stall" strategy as your description seems to imply. We have openly discussed changes to our business model and jurisdictional issues with both the banks and credit card companies over the course of months. We have across-the-board approval for our way of doing business under the current regime. If the credit card companies decide to ammend their rules at some future time or implement a whole new set of regulations, then the only thing we can promise is that we will be on top of it, as we were this time, and try to once again come up with the best solution for our clients.

I will reiterate what I stated in previous posts:

We will not divulge the full details on our strategies for obvious reasons. We will say that we saw the writiing on the wall many months ago and started taking proactive measures since then to protect our clients' businesses to the best of our ability. The bottom line: it is business as usual at Glo-Bill, meaning:

- No set-up fees
- No monthly or annual fees
- No reporting of your private information to any outside entity
- Websites from foreign countries welcome as always without special requirements
- No Big Brother style registration forms and no scrutiny of your website by other entities
- We help you maintain your chargebacks at very low levels WITHOUT blindly declining good signups
- Still no free trials and proud of it!

Again, Ron, I would like to thank you for your post and your opinion of Glo-Bill. I think that in this time of change for the industry that certain companies are standing out for the way they are attempting to keep webmasters informed. Your presence on this board is certainly appreciated by many, including myself, and I think that speaks for itself. I know that CCBill is here to stay and is an anchor for the industry. And, if I may be so presumptuous to state, so is Glo-Bill.

Amen

Thank you.

So I can start a paysite up here in Canada and not have to pay anything to Visa? It will be just the same it was a week ago. Nothing different? If Ron is a close to Visa as he says he is, and he says there is no way around it and that Visa is very clear that you must have a registered biz in the country you process for, how can globill get around it?

You have to keep your secrets, granted. But it doesn't make sense.

?????

Daymare,

I've been as clear as I can about the issue. As stated, there are no set-up fees. Please give my sales staff a call if you are interested in exploring our services.

I will state for a fact and if I were doing paysites right now, I would be willing to gamble that Glo-Bill may have a solution. I mean previously when I founded a THIRD PARTY COMPANY WAY BEFORE CCBill even came into the market, I was already looking at this. But I never got around further because I sold my company, but going offshore is an option. And I have NO DEALINGS WHATSOEVER with Glo-Bill and will state that if I had to choose right now from my past experience, CCBill has overlooked something and I am sure of it.

-Nato

Fuck ccbill and their strong arm tactics.. they are doing nothing short of raketering.


GLOBILL GLOBILL GLOBILL!! all the way baby!

"for obvious reasons"

this can be taken several ways. i think the way it's being taken, generally, is that it is "obvious" because it is "illegit" (this is exacerbated by the statement "No reporting of your private information to any outside entity" when there will be cases this is required, guaranteed.) maybe it's obvious because you're worried your competitors will find out how you're doing it? i dunno, that seems short-sighted.

i'd be pretty nervous right now were i a glo-bill client, without more details.

however, sincerely, two thumbs up :thumbsup :thumbsup on having no free trials.

In the end, it is up to each business person to make the choice they feel is the right one for their business. The ones that make the correct choices will obviously be in business for the duration, the rest will fall by the wayside.

Perhaps DMR will return too lol...

What is DMR?

"Dacotah Marketing & Research". They were the premier processor in late '97 & '98. Unfortunately though, they let some big boys get away with 10-20% chargeback rates and it eventually caught up to them. They were shut down John Gotti style and everybody began scrambling. CCBILL and the other processors picked up most of their business. That's when people first started realizing that high chargebacks could result in severe punishment. IMO though, the major 3rd party processors didn't do enough to cramp down on the sites they processed for. They should have said "fuck you" to anybody over 2-3% chargebacks. Sure it's difficult to turn away any business, but in hingsight, it would be saving us all a ton of headaches right now.

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.

Too many secrets -- guess it just comes down to which processor makes the most money...

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.

3rd party is the way to go thats for sure and I dont understand why people are raising hell about the 750 I know 750 is money but never thought it can spark such a deal

Escort biz

In next week or so I have to incorporate in the US

Get a bank account in the US

Maybe get a dummy office, still waiting for clarification on this.

Work out a way to have the money sent from a US bank to a Canadian bank, hopefully fax signature will be ok.

Understand all the different US taxes, and additional legal burdens.

oh and pay $750



all that to be in exactly the same position I was in yesterday. Everything can be and will be done, its just a pain in the ass.

I would have to say, without coming across as my name implies, that the answers to this Glo Bill situation is very slick.

You keep stating that Glo Bill has NO SET UP FEES! Neither does CCBill nor Ibill (if you know the right people). That is a correct statement but I am surprised that no one else has picked up on this sooner :(

A set up fee is COMPLETELY different from a Visa Regulation Fee for merhcants (3rd party and alike)! Visa and MatserCard both charge annual fees for those with merchant accounts (not referring to 3rd party here). Those fees are NOT imposed by the merchants card processing companies (i.e, cardservices, ip technology) but by Visa and MasterCard themselves.

Hence, a set up fee from a 3rd party processor is NOT a fee imposed by Visa or MasterCard. What V/MC imposes is what they impose and is SEPARATE from ANY merchant service(i.e., cardservices, ccbill, etc...). CCBill, IBill, etc cannot legally or ethically charge you $750.00 and say it is a fee from Visa for if Visa got wind of that, then they can shut these companies down with a single phone call and two simple words....SHUT DOWN!

So my question is here, is Glo Bill going to dodge Visa's new policy whereas those who transfer their accts over will find somewhere soon down the road that they have to pay and are possibly in violation REGARDLESS of the information that has been passed on to them, or is further reseach going to be conducted whereas you will find out that Visa is like the facist regiem that they are and once a decision is made, the webmaster truly has no choice but to pay? $750.00 is NOT a set up fee; it is a VISA POLICY period!

This is a big issue here and to take a "word" on it is riduculous or can Glo-Bill put this in writing for webmasters who are looking to transfer their accounts have the backing, in WRITING, that we need god forbid the building topples down around us?:ak47:

You've really got a bug up your ass against CCBill don't you?

Great. You founded a 3rd Party Company way before CCBill & got out of the business, but were looking at this a long time ago...and that means what? Nothing. CCBill & all the rest have to actually deal with the situation (as in lay their business on the line), not sit here and speculate on what they should be doing to help you avoid paying a fee.

Glo-Bill has decided to take their chances by trying to work around the issue...More power to 'em. They're going to play the game a little differently, but even they can't say with absolute certainty that their gameplan is going to work. I'm sure they believe it will, & they may be right, but at this point nobody really knows.

But I just don't get it....How can anyone fault a company for not taking their operation offshore so they can save you a few bucks? Further, how can anyone claim the processors are using strong-arm tactics in this? Visa's making the rules.

Sorry eblastics, but you are wrong. 90% of the rip off companies that caused this mess are still out there, processing probably just as many charges as they were a year or two ago. They change names and companies just like normal people change underwear.

They know what the dodgy scam they run is, and they are very good at it.

In the end, they will probably be the last ones standing.

you keep hammering this theme and it's really pissing alot of people off. Just because someone wants to maintain full control of their business, that makes them an *Internet cowboy*?

You've got some real attitude problems.

Firstly, I don't have a thing against CCBill, they grew their company to what they are because of smart marketing and good business sense. I am ONLY using them as an example.

I already sympathize with what they must be going through right now ok? I know it will be a huge issue for them. But let me put it this way, there are a few things that I am stating right now which I feel is necessary to be said.

1. Third Party Processing if what the "Big 5" have stated there is NO way around, is going to lose a LOT of business. In every matter, there is a solution. I chose to believe the Big 5 haven't found a solution to their problems yet. And I strongly urge them to find one.

2. They aren't saving me jack cash ok? It doesn't matter to me if Visa starts their regulations. I don't depend on Visa right now and could give no more then 2 hoots about what they choose to do. But it is what I feel the misinformation that is going about that I am choosing to correct. And you don't have to be up on my ass ok?

3. I empathize with people who are not based in the US that is it. Ok? Is that a ~!@#$%^& crime to state that I feel this way?

You are right that no one is right until things come to past and we look on hindsight. This ruling can change the way a lot of stuff goes on THOUGH.

Here is my issue and LET ME ONCE AGAIN CLARIFY.

You are a US company and you place your trust in an IPSP.
Now, what happens if their fraud scrubbing causes you to have 5% for 6 months? You get black listed and can no longer get any one to process for you then what happens?

This can happen to ANY BIG COMPANY ok? So then what? They default and then? Think about it ok? It has a chain reaction ok?

-Nato

To anyone who wants to know.

I spoke to Paypal today and no one there knew anything about this.

They said they would have known if it was happening by the middle of next month.

It pretty much boils down to who you want to believe. Sounds to me like Glo-Bill is trying to work around the issue. Hey, that's great. All of the cheats with high chargeback percentages can move to Glo-Bill, and then Glo-Bill will get shut down by Visa.

Isn't this what Visa is trying to do? Get rid of the dryrot that makes everyone else in the industry look bad?

I think the reasons are really obvious

This situation and the way they found to solve it puts them ahead of the competition, and no matter on how friendly terms you are dealing with the other 3th party processors they ARE the competition.

If I were Globill I cetainly would not help them find out how to do the same and loose my edge.

Plain and simple(and legal) business IMHO

Have you ever used Globill for a processor ? Are you familiar with their policies and what they tell their clients ? How they run business ?

Some of you need to RESEARCH on Glo bill before you mouth off .
I don't make any comments about other processors since I don't use them nor am I familiar with their procedures..

I bet on a whole chargebacks are very LOW with all of Globill's customers. I know I have had 0 chargebacks in the last 2 years.

I can just see people going to the competitor's sites and doing shit loads of chargebacks to run others outta of the business after the new rules take place..

I would have no problem paying GLO BILL the $750. I do have a problem with webmasters from other countries having to incorporate in America considering VISA is world wide.......

Listen up EVERYBODY! Kimmykim just said it loud & clear...
If you get blacklisted, all you have to do is "change names and companies". Geez, Visa & MC probably never thought people would do that. They have to go back to the drawing boards now.
Maybe they should hire you for all the intuitive thinking & original ideas you can think of that slipped by them.

3rd party processors are the problem with this industry. They make it easy for shithole sites to remain hidden & discreet. Well, that's about the change. If everybody had their own merchant accounts from day one, it would have been much easier to weed out the bad seeds early on. Instead 3rd party processors have been sheltering them for years, many of them going out of business in the process (DMR, Sypro, WTS, Lancelot, Digiblaze, etc... etc...). And what happens after that? Those same pieces of shit that caused those 3rd party processors to get shut down move to another 3rd party processor (with their high CB rates) and cause problems for a different processor.

You are a dumbass eblastics, there is no other way to say it.

Visa is well aware of who does what, perhaps this time they will put an end to it, since blacklisting and telling banks to terminate them hasn't stopped it.

Perhaps you are one of them? If so, I hope you are the first one out of business.

Shrugs... let Glo-bill be...

They're gonna just be harboring cheaters, scammers, spammers, and ofcourse the innocent small paysite owners (I didnt want to group you with the rest, so dont get pissed).

I just hope the smart and honest ones think ahead of time, because... VISA will most likely change their mind on this issue, if Globill is currently abiding by their new regulations...

Would be awesome to see a good majority of the cheaters and dickheads in this business get flushed down the toilet when Visa kills all transactions by Globill tho.

So... enjoy it while you can...

I wouldn't step anywhere near it, regardless, I'll play it safe and chill with the "gestapo-3" as someone referred to earlier.

:thumbsup

Until next month, Visa & MC aren't keeping aware of anything. That's what these new regulations are about you nitwit. Until now, merchant accounts as a whole were monitored, not every single site piggy backing on 'em.

Instead of booting the high chargeback sites like they should have from day one, what does your 3rd party processor do to fight chargebacks? They tighten scrubbing and decline 60% of all attempted transactions. Then again, should I have expected more from a company that employs such intuitive geniuses as yourself?

Don't make me come bitch slap you!

Can I be the indian?!

eblastics,

Thousands of high risk merchant manage their merchant account without any problems. You just need to have the right company behind you. Whether you are third party or having your own account, 5-6% chargebacks is not acceptable at all. With the new regs, there is no more hiding behind your IPSP. The playing field is levelelling out quickly.

Mitch

I remember Sypro... I had just started a small paysite.... Got 20 or so sign-ups within 2 days... And they went went under... Shit some of the Big boss's were in on it I think(the fraud). That was my one and only paysite.:321GFY ...One guy I talked 2 had just gotten his all up and running... he got burned for like 15K... and most were for recurring.... what a fucking mess...

I agree with eblastics.

Most people who have been in the industry for a while know some of the biggest merchant account juggling companies. As Kimmy said, those people will be the last ones standing. That's the fucked thing about this whole mess.

No, it's quite obviously being kept under wraps beacuse this gives them a DISTINCT ADVANTAGE in 3rd party billing, and the longer they can hold on to it the better for them.

Fo Guck SourYelf

I hear more power to Glo Bill for trying to work around Visa's strongarm however, will you be saying that when they tell you at the end of the year you have to pay either $750.00 or a 25k fine because that "work around"?

I hope they do find a way around it but I will wait til I see something more substantial then someone's word. I mean come on people! You have seen this industry take a nose dive off of other people's "word"! Think that would send up flags?

I am a small webmistress and I refuse to take word of mouth. Some call it not the "in crowd" thing to do cause everyone else will travel to what they hope are greener pastures but I am not about to let someone screw with my already limted money on a hope and a prayer.

Give me something in writing stating that I will not be effected and I am all for it as I am sure many of you are thinking but won't state. This is a big deal and I'm sorry, a handshake won't do on this one.:feels-hot

Here is my 2 cemnts worth

I had a Canadian merchant account. Until Moneris took the 0% tolerance on adult entertainment and shut be down.


When I got a chargeback, VISA or Mastercard took the charge off my next monthly statement plus a 5 dollar charge. If it was a fraudulent card, same thing would happen.

They were NOT losing money on frauds, chargeback, they were MAKING money!

So as far as I am concerned this is a huge Cash Grab for Visa.

but we have to pay 750 PER 3rdparty biller. Also Master card, Diners, Amex, JCB WILL follow suit. and they may all charge 250 bucks each.. Ya it is the cost of doing business.. fine.. but it is not helping anything but there pocketbooks.. the 3rd party billers do not get one cent of this.

Any thoughts?

KimmyKim is right is the sense that the cheaters will not be detered by this ... they'll just find another way to do it. It may slow them down, but not for long.

Is Glo-Bill offering a guarantee that their secret strategy will allow webmasters to continue to function as always? And an issue such as this has to affect PayPal, so I would suggest that the fact that employees reached by phone who were unaware of it, rather than suggesting some kind of conspiracy, just speaks very bacly of them.

In my eyes, if they are gonna charge anything.. it should only be ONE per entity.. not per biller... so this means that unless you want to GIVE AWAY $750 you will be stuck with one biller and hence put all your EGGS in one basket.. That is what really gets to me.. Somebody should come out with the
PORNCARD - everywhere where visa doesnt want to be.