[ic] Status of Paypal Intergration [OT]

[John Foster]

Ed LaFrance wrote:

> 
> Hmmm... my one and only business card is a Mastercard. I has worked fine
> for me for nearly three years - faced suddenly with someone who won't take
> it, will I change cards or vendors?
> 
> The real issue here is not MC/no MC, because the suspicion among those
> concerned is that this is not an isolated event. The big card issuers do
> not like aggregators like PayPal. They have the highest incidence of
> chargebacks and fraud claims among all processors. Mastercard is willing to
> bet that 80% of the aggregators' business comes from 20% of their
> customers, and those people will  switch over to conventional merchant
> accounts, rather than loose the ability to process Mastercard. If they are
> more right than wrong, watch for Visa, Amex, Discover, etc to follow suit
> shortly.
> 
> - Ed L.
----------------------------------------------------------
In a recent foray into the banking world , I interviewed both Compass
Bank (my present merchant bank) & Bank of America; regarding the
initiation of true bank based credit card handling. The result is that
they both have internet gateways implemented using third party
underwriters. I will also be checking with Chase bank shortly. I was
astounded to find that currently Compass Bank's underwriters will NOT
handle internet transactions involving products of ANY computer related
nature or any transportation item, taxi, limo, etc. So far neither Bank
of America or Chase have responded. If it is of some further interest I
will post my other efforts. Compass Bank also informed me that they will
not ever handle Paypal transactions involving charge cards.... only ACH
transfers. I believe that very soon we will see all of the major banks
consolidating their resources and assets to allow for the omission of
aggregators. I believe this is because they have suddenly realized that
they were losing a lot of profit potential to these aggregators and want
them out of the picture. It's a shame that they were unwilling to take
the initial risks and do the proper due diligence that would have
enabled them to do this sooner and make our jobs more doable.
-- 
John Foster
AdVance-Computing Systems

Specializing in multi-processor based business software environments!