The New York Times Ladies and Gentlemen - GoFuckYourself.com

Chris Mallick · 05-12-2003, 10:00 PM

Have a look....

http://www.nytimes.com/2003/05/13/te...gy/13CARD.html

greentea · 05-12-2003, 10:02 PM

Nice!

Good luck with the suit

robfantasy · 05-12-2003, 10:03 PM

Chris Mallick · 05-12-2003, 10:06 PM

Quote:

Originally posted by greentea
Nice!

Good luck with the suit

thx

MikeEP · 05-12-2003, 10:09 PM

Chris, you mind posting the article..not a member..

hershie · 05-12-2003, 10:10 PM

greentea · 05-12-2003, 10:11 PM

Company Sues MasterCard Over Fees for Online Sales
By JENNIFER BAYOT

Paycom Billing Services, a company that processes credit card and check transactions for online merchants, sued MasterCard International yesterday, asserting that MasterCard violated antitrust laws and charged excessive fees.

The suit, filed in Federal District Court in Los Angeles, seeks at least $23 million in damages. It signals that Internet vendors might pursue their own antitrust accusations against the card network. Last month, MasterCard settled a class-action case brought by retailers, agreeing to pay $1 billion and to reduce its debit card fees, among other concessions. Visa USA, a co-defendant in the case, reached its own settlement two days later.

"The publicity from that lawsuit has caused Internet retailers to question how Visa and MasterCard treat them," said Joseph Cohen, a partner at Beirne, Maynard & Parsons, a Houston law firm. "It's sort of like a shark who sees blood in the water."

The lawsuit by Paycom, which is based in Marina del Ray, Calif., asserts that MasterCard uses its market power to charge Internet vendors excessive fees. Under MasterCard's rules, online merchants pay much more than traditional retailers to accept credit card transactions, as much as three or four times as much, according to The Nilson Report, which tracks payment systems.

The higher fees apply whenever a customer cannot physically present a card to make a purchase.

MasterCard has said the higher rate reflects the amount of fraud on the Web. According to Celent Communications, a research firm in Boston, fraudulent transactions account for more than 2 percent of online card spending, compared with 0.1 percent for in-store charges.

Most of Paycom's billing clients are sex-related Web sites, which industry experts say are more prone to fraud and "chargebacks," the term for purchases that customers deny making. Paycom says it processes about two million transactions a month.

David Robertson, publisher of The Nilson Report, said Internet companies were plagued by "friendly fraud," in which "your perfectly valid cardholder can deny a transaction he willingly made."

MasterCard, based in Purchase, N.Y., said it could not comment on the lawsuit because it had not yet been served with Paycom's complaint.

Paycom's lawsuit also includes a frequent grievance of online merchants: that they must pay for any losses on fraudulent transactions. In contrast, any fraud associated with in-person transactions is absorbed by the credit card issuers.

Christopher Mallick, Paycom's chairman, predicted that other Internet companies would join the lawsuit or file their own.

"I can see this ? or something like this ? turning into a class action," he said. "There are thousands and thousands of merchants being affected by this."

Paycom said it had excluded Visa from its lawsuit because Visa had worked harder to reduce fraud, instead of leaving merchants to shoulder much of the cost. Mr. Mallick added that Visa's penalties for chargebacks were more reasonable. "Although restrictive, we think they're fair," he said.

Over the last two years, both Visa and MasterCard have created products that authenticate online transactions. When online vendors use the new systems, called MasterCard SecureCode and Verified by Visa, their customers must type in passwords to make purchases, much as they use personal identification numbers at teller machines. The merchants are then no longer liable for fraud; instead, the card companies agree to pay for losses.

Rich · 05-12-2003, 10:17 PM

Good luck man!

Hooper · 05-12-2003, 10:21 PM

becoming a member is absolutely free. i wonder when news sites will sue for reposting the articles they wrote. amazing.

good for you chris. i hope the suit does well although i'm a bit shocked that NYT failed to make the important point that you/we pay higher rates for high risk transactions, despite that mastercard has absolutely no additional risk for those transactions cause they just charge you/us for them!

what jackasses.

greentea · 05-12-2003, 10:23 PM

Chris

Any plans on bringing in the other 2-3 big processors to join in your suit?

MikeEP · 05-12-2003, 10:25 PM

Thanks greentea for posting that.

Dax · 05-12-2003, 10:26 PM

Most of Paycom's billing clients are sex-related Web sites, which industry experts say are more prone to fraud and "chargebacks," the term for purchases that customers deny making. Paycom says it processes about two million transactions a month.

TheFLY · 05-12-2003, 10:31 PM

Congrats.

I bet the beach is nice right now in Marina Del Ray... I'm spoiled by the warm gulf stream

Harmon · 05-26-2012, 04:01 AM

interesting

05-12-2003, 10:00 PM	#1
Chris Mallick Confirmed User Join Date: Jan 2002 Location: Marina del Rey, CA, USA Posts: 679	The New York Times Ladies and Gentlemen Have a look.... http://www.nytimes.com/2003/05/13/te...gy/13CARD.html __________________ Chris Mallick [email protected]

05-12-2003, 10:03 PM	#3
robfantasy Confirmed User Industry Role: Join Date: Jun 2002 Location: Medellin, Colombia Posts: 6,445	__________________ Looking to speak w/ high volume nutra CPA affiliates or networks... msg me

05-12-2003, 10:21 PM	#9
Hooper Confirmed User Join Date: Jul 2001 Location: A Free America Posts: 2,210	becoming a member is absolutely free. i wonder when news sites will sue for reposting the articles they wrote. amazing. good for you chris. i hope the suit does well although i'm a bit shocked that NYT failed to make the important point that you/we pay higher rates for high risk transactions, despite that mastercard has absolutely no additional risk for those transactions cause they just charge you/us for them! what jackasses. __________________ <a href="http://www.adultplatinum.com/"><img src="http://www.adult.com/wmbanners/10dcash-468x60.gif"></a>

05-12-2003, 10:23 PM	#10
greentea Confirmed User Join Date: Mar 2002 Location: South Florida Posts: 6,580	Chris Any plans on bringing in the other 2-3 big processors to join in your suit? Last edited by greentea; 05-12-2003 at 10:47 PM..

05-26-2012, 04:01 AM	#14
Harmon ( ͡ʘ╭͜ʖ╮͡ʘ) Industry Role: Join Date: Mar 2004 Posts: 20,007	interesting __________________ [email protected]

05-12-2003, 10:02 PM	#2
greentea Confirmed User Join Date: Mar 2002 Location: South Florida Posts: 6,580	Nice! Good luck with the suit

05-12-2003, 10:09 PM	#5
MikeEP Confirmed User Join Date: Jan 2002 Location: Southern California Posts: 464	Chris, you mind posting the article..not a member..

05-12-2003, 10:10 PM	#6
hershie Confirmed User Join Date: Jun 2002 Posts: 4,642

05-12-2003, 10:11 PM	#7
greentea Confirmed User Join Date: Mar 2002 Location: South Florida Posts: 6,580	Company Sues MasterCard Over Fees for Online Sales By JENNIFER BAYOT Paycom Billing Services, a company that processes credit card and check transactions for online merchants, sued MasterCard International yesterday, asserting that MasterCard violated antitrust laws and charged excessive fees. The suit, filed in Federal District Court in Los Angeles, seeks at least $23 million in damages. It signals that Internet vendors might pursue their own antitrust accusations against the card network. Last month, MasterCard settled a class-action case brought by retailers, agreeing to pay $1 billion and to reduce its debit card fees, among other concessions. Visa USA, a co-defendant in the case, reached its own settlement two days later. "The publicity from that lawsuit has caused Internet retailers to question how Visa and MasterCard treat them," said Joseph Cohen, a partner at Beirne, Maynard & Parsons, a Houston law firm. "It's sort of like a shark who sees blood in the water." The lawsuit by Paycom, which is based in Marina del Ray, Calif., asserts that MasterCard uses its market power to charge Internet vendors excessive fees. Under MasterCard's rules, online merchants pay much more than traditional retailers to accept credit card transactions, as much as three or four times as much, according to The Nilson Report, which tracks payment systems. The higher fees apply whenever a customer cannot physically present a card to make a purchase. MasterCard has said the higher rate reflects the amount of fraud on the Web. According to Celent Communications, a research firm in Boston, fraudulent transactions account for more than 2 percent of online card spending, compared with 0.1 percent for in-store charges. Most of Paycom's billing clients are sex-related Web sites, which industry experts say are more prone to fraud and "chargebacks," the term for purchases that customers deny making. Paycom says it processes about two million transactions a month. David Robertson, publisher of The Nilson Report, said Internet companies were plagued by "friendly fraud," in which "your perfectly valid cardholder can deny a transaction he willingly made." MasterCard, based in Purchase, N.Y., said it could not comment on the lawsuit because it had not yet been served with Paycom's complaint. Paycom's lawsuit also includes a frequent grievance of online merchants: that they must pay for any losses on fraudulent transactions. In contrast, any fraud associated with in-person transactions is absorbed by the credit card issuers. Christopher Mallick, Paycom's chairman, predicted that other Internet companies would join the lawsuit or file their own. "I can see this ? or something like this ? turning into a class action," he said. "There are thousands and thousands of merchants being affected by this." Paycom said it had excluded Visa from its lawsuit because Visa had worked harder to reduce fraud, instead of leaving merchants to shoulder much of the cost. Mr. Mallick added that Visa's penalties for chargebacks were more reasonable. "Although restrictive, we think they're fair," he said. Over the last two years, both Visa and MasterCard have created products that authenticate online transactions. When online vendors use the new systems, called MasterCard SecureCode and Verified by Visa, their customers must type in passwords to make purchases, much as they use personal identification numbers at teller machines. The merchants are then no longer liable for fraud; instead, the card companies agree to pay for losses.

05-12-2003, 10:17 PM	#8
Rich So Fucking Banned Join Date: Jan 2003 Posts: 11,486	Good luck man!

05-12-2003, 10:25 PM	#11
MikeEP Confirmed User Join Date: Jan 2002 Location: Southern California Posts: 464	Thanks greentea for posting that.

05-12-2003, 10:26 PM	#12
Dax Confirmed User Industry Role: Join Date: Apr 2002 Location: USA Posts: 3,161	Most of Paycom's billing clients are sex-related Web sites, which industry experts say are more prone to fraud and "chargebacks," the term for purchases that customers deny making. Paycom says it processes about two million transactions a month.

05-12-2003, 10:31 PM	#13
TheFLY So Fucking Banned Join Date: Jan 2001 Location: http://www.thefly.net/ --- Quit your job and live off steady traffic. Posts: 11,856	Congrats. I bet the beach is nice right now in Marina Del Ray... I'm spoiled by the warm gulf stream