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  1. #1
    Join Date
    January 17th, 2005
    Is paypal going to start charging $750 app. fee?

    I recently got a disturbing email from iBill and wanted to see if anyone else has information on this. Basically what the email stated is that iBill was going to begin to charge a $750.00 registration fee and $375.00 per year thereafter.

    I called iBill to inquire and they told me that beginning in November, Visa and MC are going to require all Internet Payment Service Providers (IPSPs, including those like paypal and clickbank) to pass through these types of fees to their small merchants.

    If this is true, I think it will put tens of thousands of small merchants out of business. It would be a shame. Does anyone else here know more about this? Here's a copy of the email I received...

    ****************Start of Email******************
    Dear iBill Client,

    I would like to update you on several new Visa and MasterCard regulations
    that will affect the way iBill and all other Internet Payment Service
    Providers (IPSP) and their clients conduct business. Both credit card
    associations now will require a unique set of operating guidelines that must
    be implemented by November 1st. Under new rules adopted by Visa, iBill will
    be considered an IPSP that provides services to Sponsored Merchants (iBill
    clients). In contrast, MasterCard will consider iBill the merchant that
    supplies the goods and services of its clients.

    It is our mutual responsibility to ensure that we fully comply with all
    regulations implemented by the card associations. iBill is committed to
    seamlessly implementing the new regulations while retaining a business model
    that is good for our company and our clients. Below is a summary of the
    requirements for Visa and MasterCard that we must implement by November 1st:

    * Each Sponsored Merchant must complete a registration form
    that iBill will submit to Visa on their behalf.
    * Visa and our processor will require an initial registration
    fee of $750; $500 will be paid to Visa and $250 to our processor.
    * Visa and our processor will require an annual registration
    fee of $375; $250 will be paid to Visa and $125 to our processor.
    * Sponsored Merchants must be approved by Visa before we can
    begin processing Visa transactions.
    * The pay page must present the client's country of domicile.
    * iBill must provide Visa with monthly sales, chargeback and
    refund data on each Sponsored Merchant for Visa's review. Sponsored
    Merchants not performing to Visa standards can be terminated directly by
    * The credit card descriptors must pass iBill's name, as well
    as the Sponsored Merchants name. Sponsored Merchants will have 10
    characters to identify their name ie:*Merchant Name
    * iBill pay pages must include the following language: "iBill
    is a designated payment processor for Merchant Name.*Merchant
    Name will appear on your cardholder statement."
    * Sponsored Merchants must display their privacy policy on
    their site. iBill will provide a web resource to assist clients in adopting
    a privacy policy.
    * Sponsored Merchants will need to update each of their master
    accounts client email address with a single email address. This will help
    iBill create a single identification number for your business.

    * The join page that resides on our client's server can no
    longer negotiate any aspect of the transaction. iBill will provide all
    clients with a standard join page format that our compliance group will
    approve for account activation.
    * Selection of specific purchase options for goods and
    services will occur on a join page on iBill's servers.
    * iBill must allow for consumers to make purchases from
    multiple iBill client sites. iBill will support a consumer portal and all
    clients will be required to register their sites on the portal.
    * At the time of checkout, iBill must offer the consumer the
    ability to make additional purchases. iBill receipts will now contain a
    link to this portal for additional consumer purchases.
    * MasterCard logos cannot be displayed on the client's

    October will be a month of change for all of us, though we expect the
    transition should be a relatively smooth process. Following is a timetable
    for preparing for the November 1st deadline:

    * By October 14th, iBill will begin the Visa registration and
    MasterCard portal sign-up process.
    * By month end, clients will need to have a privacy policy up
    on their site and have implemented the new MasterCard sign-up process.

    I will provide you with additional updates on these initiatives throughout
    the month. Rest assured that your iBill account manager or our client
    service team will be available at every step of this process if you have any
    additional questions or need support in making these changes. Thank you in
    advance for helping us to ensure a successful implementation of these new


    Garrett M. Bender

    ****************End of Email******************

    Joe Alagna

  2. #2
    Domain Addict / Formerly known as elbowcreek Thomas A. Rice's Avatar
    Join Date
    January 18th, 2005
    I use paypal on a site and haven't heard anything about that yet.

    Somewhere, I am sure, the Gods of War are laughing.

  3. #3
    Join Date
    January 17th, 2005
    Did anyone else get a notice from the Federal Courts about a settlement concerning Visa, etc? For which they are practicing unethnical practices in regard to requiring certain things from their merchants who accept credit cards? Could this also fit into that category also?

  4. #4
    Join Date
    January 17th, 2005

    Just a quick follow-up. Since I rang some alarms, I suppose I should calm them too. I've spoken to a number of IPSPs now including Globill, Paysystems, ClickBank, and just received a call from Paypal. I've been assured from all these sources that if you are not in the adult content business there is nothing to worry about and that extra fees are not imminent.

    Although I originally liked iBill when I met them at Internet World, I have to say that I don't think they have been honest (with me) on this issue in the sense that when I spoke with them on the phone, they gave no indication that this was an adult issue. The impression they gave me was that it affected all IPSPs period. I didn't know until now, but the impression I have received since is that they have built their business in the adult area (no offense to anyone, I just didn't know it). I think that's why they had to be pro-active and make the announcement. Thanks for the feedback.

  5. #5
    ABW Ambassador
    Join Date
    January 17th, 2005
    Thanks for the heads up post just the same Joezepy.

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