posted on September 22, 2000 03:34:28 PM
I got this info from one of my online news letters. The last part I find very interesting.
"VISA/MasterCard has announced new regulations for "electronic commerce transactions," including Internet sales prohibiting processing with a swipe terminal or popular software prohibited, and subject to fines up to
$25,000 in some cases.
According the information we have received, Visa plans to notify all merchants before October 2000 that a Virtual Terminal will be required to process sales deemed as "electronic commerce transactions."
Visa will allow merchants three months to come into
compliance, or be subject to fines. MasterCard has
announced similar plans citing the high level of disputes
associated with the Internet transactions.
Non-compliance will result in fines of $5,000 for the third
month and, $25,000 per subsequent month from Visa.
MasterCard plans to fine merchants $1,000 for each month
of non-compliance.
Visa has published their definition of an electronic
commerce transaction to include "...a transaction conducted
over the Internet or other network using a cardholder access device, such as a personal computer or terminal," according to recent information.
Being in compliance will include processing all transactions
considered "electronic" by using an approved "real-time"
gateway, rather than software such as PC Authorize, IC Verify,
PC Charge or other modem based credit card processing
solutions.
Approved gateways for Internet and other electronic
transactions include CardService's LinkPoint HTML,
Authorize.Net, CyberCash, Payment Net, iBill, PayPal and
Yahoo! Store."
Source is "Choices:The Yellow Pages of Art and Craft Shows."
posted on September 22, 2000 06:01:59 PM
Personally as a merchant I will no longer process internet orders with my cc machine. To much fraud out there. I got burned last year in 1000's of dollars of chargebacks. I make all customers pay with cashiers checks or money orders. Not only did I lose the money I also lost the merchandise. So be careful processing sales over the internet.
posted on September 22, 2000 06:13:59 PM
I'm a credit card merchant.
I've received no such notification, nor anything which even sounds like that.
This whole thing sounds fishy. There are no "fines" in the credit card merchant world, unless maybe if you commit some crime and get charged in criminal court.
posted on September 22, 2000 08:27:49 PM
I have heard a lot about this and I wish someone would post a definitive link to an article. I too called my processor and they knew nothing of it.
I heard of some people who have been notified of this change and I suspect it was because they have cybercash, or another real time online processing service.
This interests me greatly since I have been conducting a lot of research on ecommerce fraud in preparation of launching our website. There is a lot of fraud out there, but there are so many precautions, and resources to help greatly reduce the risk.
The problem I have with the credibility of the post is that it says PayPal is one of the "authorized gateways." I find that extremely hard to believe since PayPal does not give the seller the cardholder billing address and allow the seller to choose whether or not to ship to a different address.
posted on September 22, 2000 08:55:10 PM
Very interesting how paypal would popup in that list as a gateway after such a short time in this new credit card type business.
I could beleave maybe yahoo might make such a list being a company that has been around for many years and could be trusted to be here for many more but paypal as a web company is a jonny come lately that dont even have a good solid grip on its own business and rules as of yet.
heck they arent even sure how they make there money or is that how they will make there money off this thing yet just pokeing each of us for one reaction after the other see which will stings them less.
if this were really a statement made buy these big nearly monopolistic card issuers you would think companys like wellsfargo, western union. keycorp and other big banks with online persents or looking to have a big online persents would be more to there likeing and work with them for this type of gateway service.
there is many many grey areas in this and most of them grey areas will be on our heads liturally in the next few month
