WorldPay Has Stopped 3rd Party processing of cards

[billingviews]

Hi there,

Does anybody know what worldpay's policies are with regards to 'processing payments of 3rd party products'?

I know from a few business acquantances who run internet retail shops selling their own and also 3rd party products that Worldpay are now actively putting a check on these '3rd party processing activities'.

Apparently, if you have a worldpay checkout system, due to some unknown legislative reason, you are not allowed to use it to resell other companies' products except your own....

I am not sure what the clear picture is. For example, cd-wow.com, a very successful DVD/CD shop uses worldpay - since they started, and I recently just bought a DVD from them, and it is still using worldpay checkout. But surely they fall in the category of 'reselling 3rd party products??'

Any comments are welcome.


Kind Regards

Joe Wee
Daily Billing News And Expert Views
www.billingviews.com

[esttherbunny]

Hi there!

Cd-wow is still with WorldPay and of you take CD's as a 3rd Party product, then WorldPay has not stopped processing for such companies...

E.

[othellotech]

You're misunderstanding what Worlpay are trying to prevent, and what is meant by the 3rd part rules.

When you buy a cd from cd-wow you are paying them for something they will send you. The fact they buy it in from elsewhere is irrelevant.

What worldpay are stopping are the myriad dodgy companies breaking the law acting as "clearing houses" for credit card processing on behalf of a 3rd party - i.e. places that sign up to worldpay but "sell on" the processing facilities to others

Example:
you sell hosting, payment is made through our worldpay account, we get te money, take a commision and pass the rest to you - we would therefore be acting as a processor for a 3rd party - you.

Plenty of companies have done this - most if not all have been shown up to be scams, and teh concept is in breach of all sorts of money-laudering laws etc ...

[GordonH]

What they are clamping down on is "factoring".
This is when I let you use my merchant account and charge you a fee.
This is what 2checkout and CCBill do.

Factoring is illegal in the UK and always has been, unless the company doing it is a licensed credit broker.

Factoring on merchant accounts has ALWAYS been prohibited under the merchant agreements.

However, Worldpay only have themselves to blame because they do not make it clear to their customers that they are being issued with real merchant accounts froma real bank.
many of their customers think that Worldpay is a third part payment processor, when they are not.
They just negotiate merchant accounts for you with their own bank.

[MBagent]

Factoring is even prohibited by Visa/MC regulations and rules.

[Miklo]

What they are clamping down on is "factoring".
This is when I let you use my merchant account and charge you a fee.
This is what 2checkout and CCBill do.


If factoring is illegal, why are both 2CheckOut and CCBill, along with ****** and other companies, still allowed to accept Visa and MasterCard as a payment option? Wouldn't they get huge fines from Visa/MasterCard? :confused:

[GordonH]

If factoring is illegal, why are both 2CheckOut and CCBill, along with ****** and other companies, still allowed to accept Visa and MasterCard as a payment option? Wouldn't they get huge fines from Visa/MasterCard? :confused:

Factoring is illegal in the UK.

[Chrysalis]

Wouldnt surprise me its illegal in the UK the merchant account criterias and prices are a joke.

[Miklo]

Factoring is even prohibited by Visa/MC regulations and rules.
Meaning this is not only prohibited in the U.K., but everywhere?

So, 2CheckOut and ****** are not in compliance with their rules?
I know that a shopping mall is not accepted by MasterCard unless all merchants within the shopping mall have their own seperate accounts with MasterCard.

I'm confused here. As far as I understand, both 2CheckOut and ****** could get huge fines if they are not following MasterCard regulations. Or do I miss something?