Looking for your input

[123Jason]

Indulge me for a moment if you will. Effective in February, just a couple short months away, Visa/MC will be enforcing a 1% chargeback limit. What I'd like to hear from you is your opinion on how this will affect our industry, the way we do business and what changes you think will need to be made.

We have been fighting for our merchant accounts as long as this industry has been around. And we keep getting them because as much as the banks don't like to be associated with "adult business" they know it makes them money. How do you think these new regulations from Visa/MC will change our access to those merchant accounts. Will all the smaller webmasters be driven out of business or forced to sign up under larger programs?

Looking forward to your feedback.

[Cyndalie]

I'm confused.

Visa dropped the acceptable CB rate to 1% back on Oct 1, 2003 for domestic transactions. Acceptable rates for foreign traffic have dropped one-half percent from 2.5% to 2.0% and I think Mastercard did it a few years ago.

Do you have a URL so I can see what types of transactions you are referring to?

[123Jason]

Unfortunately, I was out of the loop for a bit, and when I returned, I was under the impression that this was not to be enforced till Feb 04...I'm looking for more specific info on the issue right now.

[Cyndalie]

I wrote this article on it last summer http://articles.ynotmasters.com/public/ViewArticle.cgi?ID=2781 if it helps ;)

[123Jason]

Thanks. Unfortunately I misunderstood the information as it was conveyed to me. I was under the impression that the new requirements didn't go into effect until February. What was actually conveyed was that the effects of the new requirements would really start to be felt and consequences would manifest around that time.

Sorry for the confussion.