To greensheet@greensheet.com:
I've been in the bankcard industry for 10 years and am the hardest
person to please, but you've managed to do it! Got your newsletter a
couple months ago and hate the nasty jabs some of these bozos send you
guys. Jealousy is an ugly thing. But am sending you an e-mail finally
due to me viewing your Web site that has really put a couple light
bulbs in my head. Great place to find people to connect with. . . just
super. Keep up the good work and to hell with the naysayers.
H. Beaton
Thanks Mr. Beaton:
I appreciate your kind words.
Good Selling!
Paul H. Green
Editor-in-Chief
Dear Paul:
Here is your chance to prove yourself as a real defender of the ISO.
Check out this link http://www.ccnow.com.
How do companies like this or Internet Billing Company, DMR and
others get away with this? I have been in this business for about seven
years now and always believed this to be Factoring or Laundering.
Perhaps you can find out why this is legal for them and not every
merchant.
If this is O.K., then why is it illegal for a merchant to walk next door
and use his neighbors terminal or, for that matter, check guarantee
service?
I know they probably have some kind of partnership agreement in writing,
but can't retailers do the same? This is trouble and Visa and MasterCard
should put a stop to it.
Where are the ISOs? When Costco was going to sell terminals everyone was
up in arms. Now on the Internet nobody says a word. Wake up ISOs. This is
OUR business not THEIRS. Who can we write to?
Thanks for your help.
Rick D. Merchant Account Solutions, Inc.
Rick:
It appears to me that you are right. I will print your letter, and my
response, since both Visa and MasterCardÕs legal departments receive The
Green Sheet, we will see what happens.
The business of CCNow sure looks like factoring to me. Given the fact that
the site makes it clear that the merchant sells their own product, and links to
CCNow for payment, and further, that CCNow buys from the retailer at wholesale, but charges eight percent for credit card, sure sounds like the process which is prohibited at retail.
If this approach is OK, why can't a business handle all credit cards at
retail, and make the same argument, that it isn't the retailer really
selling the goods, it is the factor?
Good Selling!
Paul H. Green
Editor-in-Chief
From the CCNow Web site:
How does CCNow work?
CCNow will provide you with customized snippets of HTML code to insert
into your Web pages. This links your Web site into the shopping-cart screens
on our secure server. Customers navigate their way through your Web site,
selecting products for purchase and adding them to a virtual ÒShopping CartÓ
provided by CCNow. When finished shopping, the customer presses the Checkout
button and enters his/her credit card and shipping information to complete the
sale. At this stage, CCNow is acting as your retailer, selling products to the
customer and simultaneously buying the products from you at wholesale. In return
for the wholesale discount you give us, CCNow provides you with shopping-cart
software, credit card transaction processing, and our toll-free customer service
line. After each batch of orders is submitted and processed, we will send you
notification of the orders. You then ship the products directly to the customers,
and use our Client Administration Screens to notify us of the shipment.
To
greensheet@greensheet.com:
I have been informed that LYNK will no longer provide debit services to Discover,
only those merchants currently on-line will remain. I know that our office will
give Discover a lead only after the merchant is installed and only if there has
been a specific request. The reasons have already been stated. The prices they
sell equipment for should guarantee a short-lived existence using their current
sales plan. It seems that this plan is going to be extremely expensive and not
very productive as the competition is now almost antagonistic towards Discover,
rather than being an incredible source for leads. I am somewhat curious as to
who sold Discover this plan, either he is really good or they are not real sharp.
P.O. Godwin
