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MasterCard and 3rd party payment

 4:09 pm on Apr 19, 2002 (gmt 0)

An article in USA Today's Tech section indicates that a new MasterCard rule would bar Web sites from accepting MasterCard payments through 3rd party payment systems. Does anyone have any further information?

Here's the link to the USA Today article:




 4:15 pm on Apr 19, 2002 (gmt 0)

sodak Welcome

You may have picked a better forum to post this than I DID [webmasterworld.com]


 4:45 pm on Apr 19, 2002 (gmt 0)

Thanks very much for the words of welcome, Mike_Mackin.

If you would like to combine the 2 threads pertaining to this issue (and if that is possible), feel free.

It will be interesting to see how this plays out between Mastercard and the various 3rd party systems.


 11:21 am on Apr 22, 2002 (gmt 0)

update to this topic

to me, this shows that there is too much fraud with paypal and it's yet another good reason not to use paypal. shame that usa today doesn't mention what other card processing companies are and are not affected - it's going to be highly unfair on paypal users that don't know any different if they switch to another service also affected .....


 12:58 pm on Apr 22, 2002 (gmt 0)

Thanks for the link to the update article.

You're right - the USATODAY articles do focus on PayPal and don't list what other 3rd party systems are affected. At this point if Website owners are thinking of switching from PayPal to another service solely on the basis of this pending change in Mastercard rules, perhaps they should wait until May 1 to see if PayPal and Mastercard are able to negotiate an agreement.

Other 3rd party payment systems may also be attempting to negotiate their own agreements with Mastercard before May 1. If Mastercard wants more screening and more fraud controls, as this USATODAY update suggests, maybe some or all of them will be able to come up with procedures that satisfy Mastercard. Or, maybe they won't. It'll be interesting to see how this all plays out.


 2:52 pm on Apr 22, 2002 (gmt 0)

well it only affects some companies - it appears that those with bank connections won't be affected. i mailed usatoday to ask if they would post lists of those that are and are not affected. i doubt if they will do anything - journalists don't help anyone except themselves ...


 3:31 pm on Apr 22, 2002 (gmt 0)

If 3rd party processors cannot come to an aggrement by may 1st...it will surely affect lots of online merchants..particularly those outside of US and small to medium scale ones...!

journalists don't help anyone except themselves

That sounds true Crazy_Fool ( just that I hadn't concluded it ), almost an year back, i happen to write to a journalist in my country for some info, but i am yet to recieve a reply from him/her :(


 6:29 pm on Apr 22, 2002 (gmt 0)

At least USATODAY has published these articles. It's interesting that thus far a few other publications have published articles reporting on the first USATODAY article, but I haven't yet come across any publications that have joined in with their own independent research and reporting.

As you noted, Ideavirus, this is a development with pretty big implications, but not much information has yet come forth.

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