Forum Moderators: buckworks
[webmasterworld.com...]
History: Worldpay pulled the plug on after 5 years of processing cards on our B2B subscription news site by insisting on nearly £200k in "security deposit". Uk Based btw with £1m+ in CC processing/year
Since then, it appears the general risk rules have been tightened and anything subs based has been flagged as dodgy - especially if you do not have substantial fixed-assets on your books. Many of the high-street banks did not even bother to reply to the application; not even returned a phone call. Dreadful service.
Only one to come through was Lloyds TSB. Even then it was pulling teeth.
Summary:
Worldpay have gone from a lovely, if small, company to deal with to one that has not the whit or wisdom to examine customers on a case by case basis but, instead, applied generic rules to customers.
Most UK CC processing banks have modified their risk rule-set to the detriment of subscription sites.
Be prepared for very extensive run-around and work to get a replacement supplier.
Move your business to the USA and get a real choice of CC processing companies.
<sigh>
hopefully things will be better when 3D secure becomes compulsory (as chip and pin will be next month for CP transactions)
Yes, we did think of this but did not implement.
Oddly, no one was worried about the chargeback problem (7 years history and 3 withj Worldpay to show incredible low chargeback rates); as a B2B site, we know 90% of the customers and speak to them over the phone often. The issue was if we closed the business they would need to refund the outstanding subs amount even if we have a no-refund clause in the T&Cs.
No matter - it is just a shame organisations like that grow too big to listen to individual customers and, instead, apply generic rules.
e-commerce has become a generic tool for us all now, yet it still can be a nightmare to organise for some. I thought only dodgy porn/dating/gambling had these problems and was shocked to find we also got tarred. Time to get into a more lucrative trade perhaps :)
The issue was if we closed the business they would need to refund the outstanding subs amount even if we have a no-refund clause in the T&Cs.
Whilst I sympathise with your plight, their concern, re the above, does not seem wholly unreasonable.
One of the problems I see is that the online world and businesses are moving faster than financial institutions and legislation.
The issue was if we closed the business they would need to refund the outstanding subs amount
i see the problem now
if you were to close the business, customers could charge back - if the money has already gone into your bank account, there are no funds available to pay the chargebacks and worldpay would be liable - hence the reserve
this is a risk to all merchant providers - and the usual way around it is the reserve
worldpay do have alternatives to the fixed reserve - although they may not always be available for certain sites - did you discuss them with worldpay?
how about these as a few ideas to avoid the problem?
- switch to monthly or quarterly membersip - reduces the overall chargeback liability
- spread membership signup / renewal dates over a whole year - don't try and get them all to renew at the same time - this ensures funds are always available for cancellation / refund / chargeback etc
- perform a one-time service or make a one-time sale, and give the website access away free of charge to anyone purchasing the service or goods - for example free web hosting but charge a setup fee or sell a membership pack and all buyers get free website access
- or charge a membership data verification fee - it's a service that's performed once each year and as the service has been performed, chargeback liability (for non-performance / non-receipt) will expire after 6 months regardless of whether or not the site is still live
they're not ideal, but might help ...........
As pointed out, not wholly unreasonable but WP were completely unwilling to discuss anything except us changing to monthly subs. Sadly, with business customers, monthly debits to CCs are out of the question as it raises too many expense issues for them.
It was ironic that they had £1m or more CC business with us yet would not spare 2 hours to talk face to face about the issue.
Fortunately, it looks like banks now would like the business - without the very high funds held back (without interest!).
A strange organisation WP - guess that is what happens when you lose your independence and come under bank governance.
We investigated the legality of offering a dummy product then giving site access for free. It appears you will still be liable for a refund as there is a sevice linked with a transaction even if your documentation clearly states otherwise.
Ah well ... :)
