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Question Regarding Payment Aggregation

Discussion in 'Business & Tax Advice' started by Rough Driver, Oct 8, 2015.

  1. Rough Driver

    Rough Driver Newbie

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    A Question Regarding Payment Aggregation.

    OK so I have this client and he wants to do something that I think could be a grey area legally speaking and I don't how practical it would be?

    Think if this as a DIY payment aggregator;

    Has a clean and dirty site. Clean site is acceptable to most payment service providers the Dirty site is not acceptable - although the product it sells is 110% legal and will have a low chargeback rate of around 1%. The issue is that it offers a subscription based payment plan

    1. Get a merchant account and gateway for the clean site - Not offing a subscription based payment model

    2. Send traffic to the dirty site through paid advertising in particular Adwords.

    3. Customer pays for the service on the dirty site and all card is retained by the dirty site - yes not PCI compliant - legally a grey area??

    4.My client then processes the card transactions through the clean site manually which has the merchant account and gateway. He processes the initial trail offer and then the monthly subscription amount manually as he has the card details.

    5.The transaction descriptor for the clean has a similar URL to the dirty site. And also a phone number to deal with customer complaints and stop/reduce any charge backs

    6.So the client can process the card payments but using the dirty site for marketing and PPC that would not be acceptable to most Payment service providers. Especially with the subscription based payment model.

    He has the card details and can process the subscription payments manually on a monthly basis until the trail is over.

    Can someone who is an expert on payments tell me how practical is this?
     
    Last edited: Oct 8, 2015
  2. faithjhung

    faithjhung Jr. VIP Jr. VIP

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    I call this carding, so its basically fraud and illegal.
     
  3. Rough Driver

    Rough Driver Newbie

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    --------------I call this carding, so its basically fraud and illegal.-----------

    That may be the case, but the customers are aware that they are signing up for a subscription based payment model - This is explicitly detailed on the "dirty" site. The only people being mislead are the merchant account providers.

    As I suggested on the post - it is a grey area but carding is a bit strong. Perhaps I am missing something and you could care to suggest further ?

    Anyway the issue is not illegality but practicality - how practical is this process - can it even be practically accomplished ?
     
  4. Rough Driver

    Rough Driver Newbie

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    Hi guys

    Sorry to be a pain, but has any one got anymore thoughts on this? Specifically how practical could this be, or is this idea so left-field that it is too unpractical?

    PM me if you don't want to comment in open forum

    RD