gaybucks_chip
04-04-2008, 04:47 PM
After having watched the Epoch video newsletter (see related thread), it raised some questions for me regarding the use of Verotel as a secondary processor for those of us who are using cascading billing.
As I understand it, the card association's cross-border acquiring regulations require that Visa/MC transactions must be settled in the same region (US/EU) where the company they are processing for is located, and where at least one of the principals of the company lives.
So far, so good, one could simply set up an EU corporation to acquire funds from EU-based processors, and have some nominal principal of that company who resides in the EU.
BUT... as I understand it, apparently the ownership of the domain name, and where the domain owner is based, also comes into play, such that you cannot, for example have an EU-based company accepting payments processed in the EU for a site where the domain is registered to a company in the US. Nor can you have a company in the US accept payments processed in the US for a site that is registered to a company outside the US.
So how does this work, for example, if a company has a cascade set up with, for example, Epoch or CCBill as primary, and Verotel or Segpay (both of which are EU-based) as secondary?
The only possible way I could see it working legally would be if the company owning the domain and accepting payment is based in the EU, and is signed up with CCBill-EU and Epoch-EU... but I suspect the majority of US-based affiliate programs using Segpay or Verotel in cascade with CCBill or Epoch haven't done this.
Any thoughts?
As I understand it, the card association's cross-border acquiring regulations require that Visa/MC transactions must be settled in the same region (US/EU) where the company they are processing for is located, and where at least one of the principals of the company lives.
So far, so good, one could simply set up an EU corporation to acquire funds from EU-based processors, and have some nominal principal of that company who resides in the EU.
BUT... as I understand it, apparently the ownership of the domain name, and where the domain owner is based, also comes into play, such that you cannot, for example have an EU-based company accepting payments processed in the EU for a site where the domain is registered to a company in the US. Nor can you have a company in the US accept payments processed in the US for a site that is registered to a company outside the US.
So how does this work, for example, if a company has a cascade set up with, for example, Epoch or CCBill as primary, and Verotel or Segpay (both of which are EU-based) as secondary?
The only possible way I could see it working legally would be if the company owning the domain and accepting payment is based in the EU, and is signed up with CCBill-EU and Epoch-EU... but I suspect the majority of US-based affiliate programs using Segpay or Verotel in cascade with CCBill or Epoch haven't done this.
Any thoughts?