Forbes: Visa’s Porn Crackdown

Seth Lubove reports on the effects of some recent association rule changes on some merchant processors including InterCept who acquired iBill (Internet Billing Co.) last year.

InterCept’s stock collapsed to a recent $4 from as high as $34 last year, after the revelation that iBill lost as much as 20% of its processing business due to the new Visa rules driving away porn sites. Insult to injury, MasterCard recently declared that iBill was in “noncompliance” with the credit-card association’s chargeback rules, resulting in an assessment of almost $6 million.

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