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This isn't the case across the entire industry. There is a large portion of customers who keep their CB ratios below the requirements of Visa & MCs. Hell, plent

This isn't the case across the entire industry. There is a large portion of customers who keep their CB ratios below the requirements of Visa & MCs. Hell, plenty of the customers in the industry could get it even lower but that runs the risk of leaving money on the table by turning away a potential customer that doesn't do a chargeback. There are some customers in the industry who run silly numbers like +10% and do "Mid burning" with different banks. The highest CBs tended to be the "online dating space" or "find X nearby hookup" kind of sites. If you've got any other questions feel free to ask. Source: Worked at payment processor in high risk processing +$1B in volume

e9 5y ago
what is "mid burning" in this context? what do you expect % of charge backs to be for something like onlyfans? if you were to start a company in this field what would you use as a payment processor?
- ckdarby 5y ago
  Mid burning is when a company will have many shell companies and just open up at many acquirers and knowingly will breach their chargeback ratio with the expectation that eventually their acquirer will shut them down but they don't care because they'll move onto another acquirer. This goes on until Visa/Mastercard blacklists them at the card level but these merchants don't care because everything is shells corps and structured that it looks like it has no ties to the parent corp. I expect the CB ratio to be 0.7% if they're aggressive with not leaving money on the table and refund anything that looks like it'll give them bad press. If they're they're trying to keep it as low as possible I've seen the ability to operate at 0.3%. CCBill & Epoch when I want to shift high risk liability. Rocketgate for everything else. Getting the processor is the easy part, finding an acquirer and getting a mid is much harder. I have no advice on how to find an acquirer/getting a mid for high risk it is very much networking and knowing people club.

e9 5y ago

what is "mid burning" in this context? what do you expect % of charge backs to be for something like onlyfans? if you were to start a company in this field what would you use as a payment processor?

ckdarby 5y ago
Mid burning is when a company will have many shell companies and just open up at many acquirers and knowingly will breach their chargeback ratio with the expectation that eventually their acquirer will shut them down but they don't care because they'll move onto another acquirer. This goes on until Visa/Mastercard blacklists them at the card level but these merchants don't care because everything is shells corps and structured that it looks like it has no ties to the parent corp. I expect the CB ratio to be 0.7% if they're aggressive with not leaving money on the table and refund anything that looks like it'll give them bad press. If they're they're trying to keep it as low as possible I've seen the ability to operate at 0.3%. CCBill & Epoch when I want to shift high risk liability. Rocketgate for everything else. Getting the processor is the easy part, finding an acquirer and getting a mid is much harder. I have no advice on how to find an acquirer/getting a mid for high risk it is very much networking and knowing people club.