The credit card squeeze

One of our venture companies has just had the most torrid time with a leading merchant services firm (credit card processor). Their application, which it was claimed would take 3 days, has languished for over 2 months inside the inept bureaucracy, despite regular chasing. Correspondence was regularly lost by the card company, they would fail to advise that they wanted additional information and so a week would pass until chased etc.

Anyway, I was passed their proposed tariff for comment and was startled by the quote - it was very high. This was particularly so given the entry of firms like Google into the online card processing space with Google Checkout offering no fees in 2007 and 1.5% +15c thereafter.

But it certainly wasn't as bad as the Gower Report on copyright protection suggested was the case for downloaded music.


posted by John Wilson @ 12:14 AM Permanent Link newsvine reddit


At 8:39 AM, Blogger Hawkeye said...

The startling thing about your post on credit card companies is that on downloads they actually get more of the revenue than the creator which just seems plain wrong to me. I can understand the record coimpany getting a bigger slice of the revenue because it has put the money into recording and promoting the artist, but the card company? No, no and a thousand times no!


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