I believe ip pay charges a fixed discount rate. It could be that they are taking a loss on some transactions and making it up on others. If this is the case I can see why they might have a problem if the interchange rate on this transaction was higher than normal.
Somehow I suspect a processor which charges interchange plus rates would have less of a problem with this. On Apr 15, 2016 6:51 PM, "Scott Vander Dussen" <sc...@velociter.net> wrote: > Just not getting the logic why they wouldn't want to process a $20k > charge, why does the merchant care? Have they created a model where > they're losing money? > > Thanks, > `S > > --- > Sent mobile, typed by thumbs. > > On Apr 15, 2016, at 16:10, Sterling Jacobson <sterl...@avative.net> wrote: > > Yeah, nice trick, but not surprised IPPay handled it that way. > > > > The way I use IPPay its really expected a bunch of low monthly charges. > > > > $20k charge on my own card for rewards? Probably not something the > merchants or card company cares for. > > > > *From:* Af [mailto:af-boun...@afmug.com <af-boun...@afmug.com>] *On > Behalf Of *Travis Johnson > *Sent:* Friday, April 15, 2016 4:54 PM > *To:* af@afmug.com > *Subject:* Re: [AFMUG] Merchant services > > > > This seems like it was a lot of work and issues and headaches (phone calls > getting pre-auths, then calling again to double check, etc) all to get > cashback rewards that probably equated to less than $400. Your time should > be worth more than that as the CEO of a company. > > > > Travis > > > > > > On 4/15/2016 2:43 PM, Scott Vander Dussen wrote: > > I’ve received a few off-list request for my story and a couple here > on-list. I don’t mind sharing, I just didn’t want to come out with a rant > about IPPay because that wasn’t my goal. I share this experience because I > really value this list and the contributions made by all you wonderful > people. Few things have shaped my business and been as valuable of a > resource as this list (beginning as Part-15.org <http://part-15.org> to > current), so thank you everyone! (: Part of that awesomeness is sometimes > sharing the less than stellar experiences we face, here’s mine with IP Pay. > > > > 1. I wanted to make a purchase that was not eligible for a CC payment and > get the cash back rewards > > > > 2. I contacted Cap1 and asked if I could use one of those blank “courtesy > checks” they send out to write to myself and basically get a cash advance > plus then get the cash back rewards. They said no problem, but the checks > are exempt from cash back rewards. > > > > 3. I asked if I as a business could run my own card into my own bank > account for the cash rewards. She said no problem, I asked her to research > the Cap 1 Visa ToS to verify, she did and again no problem. I then asked > her to triple verify by confirming with her supervisor, and again no > problem. They said if you have that resource to process your own card and > you’re paying your minimum balances etc. it’s a non-issue. > > > > 4. I researched “Credit Card Kiting” which is the process of paying a > credit card balance with another credit card- the practice is only a > problem when there is deception involved. Even the Wikipedia article > demonstrates its OK when there is not deception. And this isn’t even > kiting, it’s just processing a credit card for cash in the bank. > > > > 5. We process a card for $20k > > > > 6. Tanya Krapil from IPPay halts the transaction, holds the funds and > emails me asking if it’s legit. (lost a whole day of expected funds > because of this) > > > > 7. I reply it’s legit. > > > > 8. Tayan demands invoices and “documentation” before she will release the > funds. > > > > 9. I reply: “We don't share our invoices with parties not involved with > the transaction, that is not only a breach of confidentiality but > inappropriate for you to ask. While I can appreciate your concern for fraud > I have, as the CEO of Velociter, already confirmed the legitimacy of this > transaction. If at this time you are cause further delays in processing > this transaction then I will consider your actions as unreasonable > non-performance and a termination of our long standing business > relationship.” > > > > 10. Tayna the replies that she will process this transaction. > > > > 11. Subsequently Tayna spoke telephonically with other staff and > determined the card was employee owned. Tayna said she’d process the > payment but it isn’t a kosher practice. > > > > 12. Tayna then emails me to tell me just kidding, she’s not going to > process the payment after all. (losing yet another day of expected funds) > > > > My grief is that on a $20k tag Tayna doesn’t bother to pick up the phone > and call, just arbitrarily held the funds and sent an email. Then she said > two times that she would indeed process the payment only to then change her > mind later. It’s horrible customer service to say one thing and then not > honor it, even if you made a mistake. I’m particularly bothered by her > asking for “invoices and documentation” to support the charge; the US in > particular is getting so used to sacrificing our privacy and freedoms. > Tayna is demanding I send over information that completely out of her > sphere of concern. > > > > Tayna is citing that it’s a Visa policy not process your own card, but has > provided no documentation to support that. There is no deception involved, > we called and pre-authorized the transaction with Cap1 on a recorded call > and Cap1 gave their blessing. I contract with IPPay to process the CC > cards I enter, nothing more. Even if there is some obscure Visa ToS that > prohibits this transaction for this specific reason (this is **not** > credit card kiting) Tayna’s lack of professionalism and the subsequent > headache it’s caused me finished my company’s business relationship with > IPPay. And I would greatly question who is the enforcement of Visa’s ToS, > the merchant or the issuing bank. I’d lean heavily towards the issuing > bank. > > > > Anyhow, thanks for the feedback and suggestions of other merchants. > > > > Scott > > > > *From:* Af [mailto:af-boun...@afmug.com <af-boun...@afmug.com>] *On > Behalf Of *Mike Hammett > *Sent:* Friday, April 15, 2016 11:35 > *To:* af@afmug.com > *Subject:* Re: [AFMUG] Merchant services > > > > Same. > > > > ----- > Mike Hammett > Intelligent Computing Solutions <http://www.ics-il.com/> > <https://www.facebook.com/ICSIL> > <https://plus.google.com/+IntelligentComputingSolutionsDeKalb> > <https://www.linkedin.com/company/intelligent-computing-solutions> > <https://twitter.com/ICSIL> > Midwest Internet Exchange <http://www.midwest-ix.com/> > <https://www.facebook.com/mdwestix> > <https://www.linkedin.com/company/midwest-internet-exchange> > <https://twitter.com/mdwestix> > The Brothers WISP <http://www.thebrotherswisp.com/> > <https://www.facebook.com/thebrotherswisp> > > > <https://www.youtube.com/channel/UCXSdfxQv7SpoRQYNyLwntZg> > ------------------------------ > > *From: *"Jason Wilson" <ja...@remotelylocated.com> > *To: *af@afmug.com > *Sent: *Friday, April 15, 2016 1:22:03 PM > *Subject: *Re: [AFMUG] Merchant services > > Scott, I am an IPPay client, email privately your decision to move. > > > > Jason > > > Jason Wilson > > Remotely Located > > Providing High Speed Internet to out of the way places. > > 530-651-1736 > > 530-748-9608 Cell > > www.remotelylocated.com > > > > On Fri, Apr 15, 2016 at 11:08 AM, Josh Reynolds <j...@kyneticwifi.com> > wrote: > > Authorize.net <http://authorize.net>? > > > On Fri, Apr 15, 2016 at 1:02 PM, Scott Vander Dussen > <sc...@velociter.net> wrote: > > Without all the nasty details, I'm completely done doing business with > IPPay. Any recommendations for alternatives? > > > > Thanks, > > 'S > > > > Sent mobile! > > > > > > > >
