Verotel drop their bomb..

[cd34]

Actually, there is a silver lining to them taking escrow.

Basically, the problem Visa/MC has with TicketClub type transactions is that it is very close to factoring, i.e. taking charges on your merchant account for someone else.

So, by Verotel appearing to take ownership of the domain, Its no longer factoring. To Visa/MC, it verifies their 'ownership' and makes it look like they are not factoring. This is what Websitebilling and Globill tried to do before they decided it was more profitable to move to a bearer share island and cash out with reserve money + the last month of income from hundreds of sponsors.

The other issue is that the domain in escrow is now subject to laws in Netherlands -- that will allow more flexibility in the types of clients they are able to accept. Underage in the Netherlands is a lot different than underage in the USA -- potentially a bad thing there. The ownership chain might become difficult to follow -- I can see lots of people taking advantage of that with regards to taxable income.

Overall, Verotel has done exactly what they needed to do, and is posturing itself to be able to stay in business with Visa/MC's current regs. Its the right move, but sounds quite draconian if you take it at face value.

They really could have written that letter a little more clearly.