PURCHASE, N.Y. - MasterCard has announced it will begin enforcing its rule 5.10.1, which prohibits users from using their customers' credit card information in the practice of pre-checked cross-sales.
Adult webmasters learned of the decision Wednesday through posts on several message boards, including GFY.com, where CCBill CEO Rob Cadwell announced that pre-checked cross-sales are "now officially DEAD!"
Cadwell was not immediately available for further comment on the issue.
MasterCard's rule 5.10.1 states that a merchant cannot "sell, purchase, provide, exchange or in any manner disclose Card account number, Transaction, or personal information of or about a Cardholder to anyone other than its Acquirer, to the Corporation, or in response to a valid government demand."
The rule apparently only applies to merchant accounts; IPSPs will not be affected, Cadwell stated in his post.
Essentially, MasterCard's decision to enforce the rule means programs that use pre-checked cross-sales with other programs will now be fined as much as $50,000 per week if they continue the practice. It was unclear how soon MasterCard would begin levying fines.
Pre-checked cross-sales have been a hot-button issue in the adult online industry in recent months, and the topic was addressed in a recent cover story in AVN Online magazine. Proponents of both sides have been vocal in recent months about the practice, and cross-sales have been seminar topics at various webmaster shows throughout the year. In fact, a "Cross-Selling: Profits and Pitfalls" seminar is scheduled for Internext Las Vegas.
