Interesting tidbit about recurring

[Sumrpal]

I have mentioned our mainstream processor a couple of times here. Well, we just received an email from them stating that they are stopping all automatic rebilling effective immediately. No more recurring (until further notice, they say).

Portent of things to come? Or an isolated incident? Only time will tell.

|peace|

[Cleo]

What were you selling that it was mainstream?

[gel]

Who is the processor?

[Ramster]

Recurring rocks baby! But I have a few sponsors that offer 2/3 month "deals" and it's nice getting the sale when it happens but I believe processors won't recur past 30 days. That means the 2 month deals are a one time thing which actually sucks honestly.

I don't see recurring going away. It's the foundation of most online businesses!

[Sumrpal]

At the moment we're selling software. We're looking for other products.

The processor is kagi.com

Recurring will go away if the credit card companies say it's going away. The question is, will they? It sure would be a big hit to our biz and their biz, so it's really hard to say.

|peace|

[Cleo]

I often buy software through them, but I can't see why you would need recurring. Maybe subscription software???

[Carrie]

Sumr try Paysystems.com. I've been using them for years and they're great. Weekly direct deposits, too.

[Sumrpal]

LOL

Thanks guys, but we don't use recurring on anything. We just do straight one-time sale.

The point I was making was, here's a fairly large processing company sending out an announcement stating that all recurring will stop immediately, apparently so ordered by the credit card companies.

I just thought it was an important tidbit of information. If it isn't, then I'll apologize for wasting board time and space.

:)

[RawAlex]

I think this might have to do with classifications for Visa. If they are classed as "selling goods" and have ended up selling memberships (such as to chat rooms, news sites, whatever) that recur, I think that puts them into a different class for Visa. That might change things like chargeback ratios and such.

Could also be that Visa spotted chargebacks as a result of the type of sites they were doing recurring for, and as a result, asked them to stop in order to keep their merchant accounts in order.

I have no proof, but I would suspect something along those lines.

Alex

[Sumrpal]

Yes, I think you've got some pretty sound reasoning there, RawAlex. I was thinking the same thing .. they ran into trouble with some recurring they were doing and nipped it in the bud before Oct 1st, which would make it an isolated incident. Let's hope, anyway.
|peace|