Pressure from administrative requirements by Visa and MasterCard will mean WebsiteBilling.com Ltd. ceases and desists May 23, the company announced the day before.
"We were recently informed by our European Acquiring Bank (one of the largest banks in Europe and one of the last that was willing to work with Aggregators and IPSP's) that the Aggregators and IPSP's they work with are being closed due to the pressure and administrative requirements passed down by Visa/MC," managing director Evin Daly said in a statement. "By losing this merchant relationship, we have no practical way to maintain our current client database"
Daly said "arbitrary fines" by card associations, foreign banks and agents delaying deposits, and "general harassment" against so-called "high-risk" businesses, provoked the pressures that made it impossible for WebsiteBilling.com to continue.
"We have operated with the best of intentions in trying to fighting through these issues and regaining strength, but there is unfortunately nowhere else to turn when our current and primary bank chose to exit the business," he continued. "We are very proud of the service that we have offered and are grateful to have had the opportunity to work with many terrific individuals. We are very hopeful that the lawsuit mentioned above will bring meaningful change in the way that card associations deal with merchants in our space, but it appears that in the meantime, they have claimed another casualty."
Earlier this month, Paycom sued MasterCard, accusing the credit giant of setting up "monopolistic" rules giving it "unreasonable discretion" to dominate Internet merchants, and impose "illegal" fines and penalties in the millions, against supposedly "high-risk" businesses like adult entertainment.
Paycom filed a multimillion-dollar antitrust and fraud suit against MasterCard in federal court. "We are in compliance with MasterCard's rules as a merchant, yet they fine us millions of dollars," said Paycom chief executive officer Christopher at the time. "Paycom has been directed to change its entire business structure, indeed to change the way in which E-commerce works, to comply with additional rules from MasterCard; rules that MasterCard cannot or will not articulate or explain."
But he also said, however, that Paycom would continue accepting MasterCard "during and after" the litigation.
"A monopoly like MasterCard has a duty and an obligation to treat us fairly as a class of merchants," Mallick said. "We are going to try and make sure it lives up to that duty. Wal-Mart did. Home Depot will. We know we are not Wal-Mart or Home Depot, but we are entitled to insist on fair treatment just like they are."
