URGENT MESSAGE
To WOSAT ECONOMIC SECTION
To WOSAT MEMBERS
Policy Update (stormpay, 2006)
31-Jan-2006 14:40
Due to high volumes of fraudulent transactions made to merchants with
commission based business models, StormPay can no longer process
payments for those type of merchants who choose to accept more than one
payment processing solution.
Using more than one payment processor is exactly the situation that
"fraud" seeks out. This enables the fraudulent user to set up a fake
profile with either of the processors, make a purchase or join the
program, and then withdraw their earnings to the other processor where
the real identity is used. This sort of activity makes it nearly
impossible for either processor, or law enforcement to properly handle
the fraud because the "trail" comes to an end. This is the cause for a
great many chargebacks to those merchants which can be avoided.
As of 1/30/2006 StormPay must require Merchants with a commissioned
based business model who choose to accept StormPay, to only accept
StormPay. StormPay certainly does not wish to dictate how our merchants
run their business, all merchants are free to choose any processing
solution that best suits their needs. We understand you have choices and
certainly hope that choice is the online leader - StormPay. However, if
another payment solution is used, please immediately remove StormPay
from the associated website as a funding option and continue to use the
StormPay account funds to finish payments to those members who paid
using their StormPay account.
At StormPay we truly care about our merchants' and the overall success
of their business and sales and for that reason we have implemented
these very necessary changes. Thank you in advance for your
understanding in this very crucial matter.
StormPay Inc.
--end policy update--
I will need to do further research before making a decision on the
action I will take. I am 100% certain a pay processor will step up to
the plate to fill the void that stormpay will be creating. With the new
rule many merchants will opt to just drop them.
Sincerely,
WOSAT30
Resouces:
StormPay. (2006, January 31). StormPay Policy Update. Retrieved January
31, 2006, from StormPay.com Inc. Web site:
http://www.stormpay.com/stormpay/user/user_home.php
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