[10798] in Commercialization & Privatization of the Internet
Re: Billing on the net (was Re: Internet vs Minitel)
daemon@ATHENA.MIT.EDU (Sean Donelan)
Thu Mar 10 01:46:02 1994
Date: Wed, 9 Mar 1994 17:44:45 -0600 (CST)
From: Sean Donelan <SEAN@sdg.dra.com>
To: com-priv@psi.com
>Why run it through the provider? All we need is a large merchant L to
>set up a billing server. When a customer wants to charge something
>with small merchant S, S gets his credit card info & passes it to L's
>server, which submits the charge to its bank; if it's approved, L
>gives S the OK; at the end of the month, S gets a check from L for its
>charges, less L's fee.
This is called factoring, and is prohibited by most (all?) card associations
merchant agreements and is illegal in many states.
--
Sean Donelan, Data Research Associates, Inc, St. Louis, MO
Domain: sean@dra.com, Voice: (Work) +1 314-432-1100
