What payment processor all "hidden memebership" sites are using ?

Hi, recently I noticed that in my affiliate network, there is really a lot of websites offers, that offer some shit service for MONTHLY fee.
The scheme is always the same :
1. They offer some FREE TRIAL digital service (like ebook, or membership in some group).
2. They HIDE as much as possible the information, that after trial, they will charge weekly/monthy fee, as long as user doesn't cancel membership. (its hidden on the bottom of the website, with really small font, or on different subpage of the website).
The purpose of it is very clear, they want get as much money as possible from the people who don't read anything that written using small font & from people that are too lazy to cancel their membership.

Anyone knows what kind of payment processor allow for such things ?

bartek70 said:

Hi, recently I noticed that in my affiliate network, there is really a lot of websites offers, that offer some shit service for MONTHLY fee.
The scheme is always the same :
1. They offer some FREE TRIAL digital service (like ebook, or membership in some group).
2. They HIDE as much as possible the information, that after trial, they will charge weekly/monthy fee, as long as user doesn't cancel membership. (its hidden on the bottom of the website, with really small font, or on different subpage of the website).
The purpose of it is very clear, they want get as much money as possible from the people who don't read anything that written using small font & from people that are too lazy to cancel their membership.

Anyone knows what kind of payment processor allow for such things ?

Click to expand...

Same question too, who are that merchants?

These modified "VISA rebilling scams" have been around for ages.

Knowing that "normal" chargebacks cost $30 (with a bank or authorize.net) I can only assume that these companies have a "sweetheart" deal with the processor - huge discount rate in return for waiver of chargeback?

It is obviously a scam against the customers. The visa processor KNOWS it is a scam because of the massive chargebacks. They don't care

Sincerely,

TheEye

theeyeinside said:

These modified "VISA rebilling scams" have been around for ages.

Knowing that "normal" chargebacks cost $30 (with a bank or authorize.net) I can only assume that these companies have a "sweetheart" deal with the processor - huge discount rate in return for waiver of chargeback?

It is obviously a scam against the customers. The visa processor KNOWS it is a scam because of the massive chargebacks. They don't care

Sincerely,

TheEye

Click to expand...

Yes is Scam and the ChargeBack rate should be "crazy" I really doubt that any Stripe will keep the colaboration with this kind of business model( even if they use "white-hat front store", that obviously they do..), but I have the same question of OP, what kind of payment providers can work with this kind of High Chargeback? Im really interest it into, if someone know or have contact can share here or PM. Thanks

From my experience (I was helping merchants to get processing solutions with banks/PSPs), you need to have a good relationship with the PSP/acquirer processing the payment, they need to know what you are doing and they will also take a nice cut compared to low risk business.
There are several tricks to not be detected by visa and MC so you are not flagged by v/mc fraud programs.

Obviously, Stripe and cie do not accept those websites. It is a grey area in the payment industry.
If they do accept to onboard the white hat front store, they will shut down the account after 1 month when the chbs will come with the rebills.

It is not officially a scam because all the websites are "compliant", it is more an aggressive marketing and billing method (I am not taking any position, I am just saying what a PSP will say if VISA/MC ask questions..of course it is shady)