PSWBilling.com may be struggling, may have been struggling in the past several months with their acquiring banks, but the adult Internet billing company is fighting as hard as it can to stay alive and reconstitute, chief executive officer John Lombardi told AVN.com
"Without a doubt, our struggle over the last few months has been exceptionally frustrating, putting immense strain on both our staff and our clients," Lombardi said in an e-mail interview. "However, at this time our will to endure in the face of unjustified and irrational conduct by the card associations and acquiring banks holds strong. This is not about PSW making or holding money, but rather that we stay alive and fight unfair business practices levied against merchants and processors worldwide."
Lombardi acknowledged, however, that many company staffers – including himself – are working without drawing salaries, "and all but mission-critical spending has been cut. Rest assured, we're doing everything we can to run as lean as possible and keep recurring running for clients." He said funds are being disbursed as soon as PSW receives them from the acquiring banks, "and we continue to use whatever means possible to retrieve the earnings irrationally held by our acquiring banks."
PSW is negotiating with Visa and MasterCard over what PSW in September called "friendly fraud," meaning customers claiming never to have made the transaction in the first place but the credit companies still charging $100 chargeback fees on such transactions, which PSW called "unfair and unjustified." PSW is also in litigation against E-Commerce Billing and Processing, Fenlight Properties, and Leumi Bank over breach-of-contract and unfair trade practices, including charges they began unfounded rumors that PSW was going out of business in midsummer over a broken credit processing deal.
A court filing in that case suggested ECB and Fenlight reneged on that deal at mid-summer over what the two companies called "projected high future chargebacks" and not PSW's actual record of "well below agreed-upon contracted maximum" chargebacks. PSW also accused the companies and Leumi of withholding monies due clients and provoking rumors about PSW which helped create further cash flow issues for PSW and its clients.
Lombardi said PSW's attorneys have blocked them for giving "vast detail" on those proceedings, but he did say lines of communication are established and PSW is pleased so far with the progress.
"It’s been frustrating for us to sit idly by, watching the immense confusion arise on community boards and Websites," he said, referring to a small epidemic of rumors which have bedeviled the company since mid-summer.. "However, we’ve gotten used to being content with the fact that we’re doing what’s best for our people, our clients, and online merchants at large. This is no game we’re playing and we appreciate the support from all those who understand our true purpose while countless others look on in disbelief."
Lombardi also said he doesn't necessarily believe there is anyone within the industry who is anxious to see the company go under in spite of the rumors and gossip.
"The corporate world is not so cut and dry as we often don’t have the benefit of seeing our enemies eye to eye," he said. "It’s very possible, as in any industry, that another organization or corporate group wants us out, and I seriously doubt other billing agents would mind if our struggle took a turn for the worst. However, the circumstances of our situation has been thrust upon a number of other companies, and unlike the majority who have tucked tail and ran, our focus has been to staying alive for our clients and fight with evidence based on fact in a system that is bound by law. Someone has to take a stand, and that’s what we’ve done."
