[10805] in Commercialization & Privatization of the Internet
Re: Billing on the net (was Re: Internet vs Minitel)
daemon@ATHENA.MIT.EDU (Karl Denninger)
Thu Mar 10 06:48:37 1994
From: karl@mcs.com (Karl Denninger)
To: SEAN@sdg.dra.com (Sean Donelan)
Date: Thu, 10 Mar 1994 01:00:52 -0600 (CST)
Cc: com-priv@psi.com
In-Reply-To: <940309174445.2f49@SDG.DRA.COM> from "Sean Donelan" at Mar 9, 94 05:44:45 pm
>
> >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
I can understand why it would be prohibited by merchant agreements (this is a
private contractual matter) but why would it be illegal? I don't understand what
the reason for that prohibition in law is...
--
--
Karl Denninger (karl@MCS.COM) | MCSNet - Full Internet Connectivity (shell,
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