Quote:
Originally posted by Surfn
Rand
I can understand what lassiter is saying and I agree with with him. You have not explain any of your position. Just stated and reiterated it without reason.
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Let me just chalk this up to maybe I'm way to close to the subject and truly do not understand the question. I've spent more of my time here on this board answering questions than I typically do on any industry forum.
I'll attempt to answer what I
think you must be asking. If I miss the point, you can ask again.
If the question is, why do transactions go to Epassporte upon denials, the answer is as follows.
Epoch offers it's clients as much flexibility as possible while remaining within all card association rules. A new client can set up sites for processing with a simple link to a join form, or through a sophisticated integration (FlexPost) which allows for maximum flexibility during a transaction. If a transaction is approved, then A, B, and C happen. But, if a transaction is declined, then what? If a client has integrated FlexPost, they have full control of their response handler. Some clients send their denied transactions to MPA2, or another IPSP, or an ACH form, or to ePassporte, or to a dialer, or do nothing. With Flexpost, the client decides what happens. IF the client is using a "standard" join form process (in other words, no integration), a denied transaction may first go to an ACH form (if it's a U.S. tran) and then to an alternative ePassporte form. Epassporte is used only as a last ditch effort as an alternative way to get a sale when all else fails. However, a percentage of those people wanting to get to your site will go through the process. At this point, the transaction becomes an ePassporte transaction processed by Epoch. The proceeds of that sale go into an Epassporte account on behalf of the client. Generally, unless you are a large volume client, it takes some time for that balance to reach anything significant. However, it is found money.
This process is in place to increase your sales. It works due to an agreement between Epoch and ePassporte. An Epoch client can, if they wanted to for whatever reason, opt out of this process by integrating FlexPost and handling their own denials in any way they wish.
To collect the funds accumulated by these otherwise denied orders, an Epoch client must open an Epassporte business account to gain access to the money processed though Epassporte. To do so, a wire transfer of funds must be sent to Epassporte to meet Visa's "know your customer" rules. Epassporte has fees to set up a business account which total somewhere under $100. Once an account is established, however, a business account holder becomes able to issue accounts of their own which is why the are so popular among sponsor programs wishing to pay affiliates. Funds in an Epassporte business account may be withdrawn at any ATM, transferred to other Epassporte account holders, or used to shop online (with the Virtual Visa) or around town with the Electron card.
If the question is why can't those funds be paid out by check by Epoch, the answer is as follows.
Epoch and Epassporte are separate companies, although, Epoch built the technology for their online processing and Epoch has an obvious interest in Epassporte. The funds collected by Epassporte and processed by Epoch remain in an Epassporte account. Epoch does not cut checks for Epassporte. Epoch get's paid the typical transaction fee for processing the sale, and the balance of funds goes into an Epassporte account until claimed by the client.
The set up fee for an Epassporte account is paid to Epassporte, not Epoch and, again, is designed to meet card association rules. Epassporte is business too. They charge for their services. Understandable since they make money from fees, mostly transaction fees and account origination fees, as they are not a credit card which makes money from interest.
I hope this helps clear things up.