Third party processing dead?

[Miklo]

Metacharge announced today:

Third party processing is now categorised as non-compliant by the card schemes.

Is this true? Will companies like 2CheckOut and CCBill no longer be able to accept merchants unless they set them up directly with an acquiring bank?

[derekwong28]

2CO claims that it is not a third party processor, but an online store with different vendors using its shopfront, as in the case of department stores.

[Miklo]

Well, 2CO has nothing to claim. If MasterCard decides that you are a third party processing company, than you are just that, period. They will no longer be allowed to process for businesses outside their own region. So within the next couple of months 2CO will no longer be allowed to process for businesses outside the U.S.