Visa Puts Clamp on Cross Sales

iPwnNoobs

iPwnNoobs

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Visa Puts Clamp on Cross Sales - XBIZ.com

Online companies will no longer be able to allow third parties to charge a customer's card without the card owner re-entering credit card information, Visa said Tuesday.

Visa says that such marketing can result in "high levels of consumer disputes and degrades the efficiency, reliability and security of the payment system." It said that 35 million consumers have paid $1.4 billion for such marketing offers.
Visa's new requirement is designed to send a "clear signal to cardholders that a second purchase is being initiated and protects them from questionable marketing practices," the company said in a statement.
A source close to Visa told XBIZ that the new policy goes into effect May 1. The source said Visa could impose fines against merchant banks that continue to work with sites that flout the new policy. The merchant banks also could face a loss in the ability to accept Visa payments.
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all i have to say right now in reaction is QQ..
 


who didn't see this coming? when people sign up for a bizopp, and end up with 50 "Healthy Lifestyle Monitor" rebills..
 
I'm guessing this is going to put all those rebills out of business? At least for visa cards anyway :)
 
You can create $100 million a year rebill companies without having to be (very) deceitful. Like high risk said, create your own upsells that customers would kill for. Make the rebilling a god-send for them.
 
This is nothing new really. We were told back in January about this. Merchants have two choices now. 1) Continue going through a 3rd party for the upsell, have the consumer re-enter all of the billing info on the upsell page. This will net about a 2-3% conversion if that.

Option 2) Have a private labeled membership club created specifically for the merchant. These clubs can be exactly the same as what was being sold by the 3rd party companies before. If the merchant is billing the customer for the club, then there is no data pass to a 3rd party. This follows all of the new processing regulations, and will generate about a 20-30% conversion.

While it did screw stuff up for a while, its created a lot of opportunity for us in the long run.

Also, this doesn't have anything to do really with the rebill of the main product (although there are new rules pertaining to that). This is only about the clubs that are displayed on the thank-you confirmation page.
 
haha can't believe this hasn't happened already. I think it's a good thing, there a plenty of scandelous ways to get leggitimate upsells :)
 
directresponse said:
If the merchant is billing the customer for the club, then there is no data pass to a 3rd party.
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right, and you could even bill them yourself and pass most of the funds to a 3rd party running the upsell/club/whatever and that would be compliant. though given how worthless most of the upsells are i can't imagine actually paying someone to provide one instead of just creating your own.
 
Yeah but now doesn't the chargeback rate become inflated due to the merchant 'owning' all these upsells?
 
This is slightly off topic - but I went to the DMV the other day to renew my license plates, and they took all credit cards BUT visa. I have about a dozen cards, and all but 2 of them are visa.

Just made me wonder if maybe visa was calling them on a late bill or something.
 
GreeLee said:
This is slightly off topic - but I went to the DMV the other day to renew my license plates, and they took all credit cards BUT visa. I have about a dozen cards, and all but 2 of them are visa.

Just made me wonder if maybe visa was calling them on a late bill or something.
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probably just a matter of not being able to get discount rates they would agree to
 
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