Mastercard cracking down on cross sales

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Sep 4, 2007
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there's been talk of rule changes/enforcement for a while... looks like something is finally being done...

RonC said:
Effective Immediately MasterCard is going to enforce rule 5.10.1
http://www.mastercard.com/us/merchant/pdf/MasterCard_Rules_5_08.pdf

Pre-Checked Cross sells are now officially DEAD!!!!!!!!!!!
Fines will be 50k per week per account
30 days for banks to cancel all accounts or termination of their right to process
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word is some banks have already been hit with fines in the millions...

if visa does something similar, this is going to be brutal... and I have a feeling visa will...
 


Who does pre check cross sales? I don't know of anyone that does it.

Seems dirty though :ugone2far:
 
BigWill said:
EU ftw
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sorry to burst your bubble, but this is worldwide...

r3p1v said:
Who does pre check cross sales? I don't know of anyone that does it.

Seems dirty though :ugone2far:
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a ton of adult affiliate programs, including some of the biggest in the biz... but this will also impact some mainstream stuff... the scope of this is pretty huge...

and yes, it is kinda dirty... this move is good for consumers... not so good for affiliates looking for higher payouts...
 
rumor has it that this is the result of FTC/DOJ involvement... been a lot of shady billing going on lately, crosses buried in the TOS, cancel page crosses, etc... it wouldn't surprise me if the government did step in... anyway, if it is true expect visa to do the same soon...
 
_poto_ said:
sorry to burst your bubble, but this is worldwide...



a ton of adult affiliate programs, including some of the biggest in the biz... but this will also impact some mainstream stuff... the scope of this is pretty huge...

and yes, it is kinda dirty... this move is good for consumers... not so good for affiliates looking for higher payouts...
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Shit like this is EXACTLY the thing that is driving consumers away from the adult membership model and to sites like PornHub which give it all away for free.

Once a consumer gets ripped off it makes them think twice about pulling out their CC online again, which is damaging to the affiliate industry. Although, the acai offers are far worse for this :)
 
Honestly I'm all for this. In the diet space this has been going on for a while and typically hurts conversions for us affiliates rather then helps. Also if you're pre-selling them multiple offers then the advertiser ads the auto up-sell it can kill that pre-sold conversion. Good for MC in my opinion. I hope all cards follow suit.
 
Restaurant.com does this at checkout for some service they offer. My family loves using restaurant.com and 3 of my relatives fell for the prechecked boxes and got set to an autobill service.
 
Cross-billing is shady as hell, and have always been a source of a lot of issues, both for customers, as well as legal issues for merchants and processors. Vertrue / Shopping Essentials have been sued a few times over similar practices, and I believe a new lawsuit was filed against VistaPrint and Vertrue a few months back. There should be no way for one company to feed another company your payment details, even if consent to purchase something else is made, since that opens up all sorts of legal and security issues.
 
The safer the consumers feel about whipping out their credit cards for offers, the better it will be for those of us counting on their signups.

I have a feeling the Acai payouts were as high as they were, just because they were gona bill it to the customers anyways, regardless if they wanted to or not.
 
I just spoke to our processor, and the facts are actually a bit wrong here.

You can still cross-sell through your processor and their other accounts along with your own. You just can't cross-sell between different processors. That's the loophole.

Its also going to effect adult way more than non-adult clients.
 
kblessinggr said:
The safer the consumers feel about whipping out their credit cards for offers, the better it will be for those of us counting on their signups.

I have a feeling the Acai payouts were as high as they were, just because they were gona bill it to the customers anyways, regardless if they wanted to or not.
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The Acai billing was nothing new, and they just made extra cash with cross-sells. They are charging the user like $80-$200 per month for their own product and then making around $20-$40 from the cross sells on a one time payout. So the cross-sells actually helped them cover the float to pay the affiliates with while they made their real profits on the rebill after the trial was over. Customers who cancelled early before the trial was over made them break even if anything, not lose money, so its a win-win situation for them no matter what.
 
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