[Asterisk-Users] LiveVoip is Bankrupt

snacktime snacktime at gmail.com
Sun Jun 26 17:01:22 MST 2005


> 
> While some may be able to get credit card refunds (depending on a
> variety of factors, like how long ago they were charged, any court
> orders in place right now, etc - most banks wont give you a refund if
> they know they wont get any money from the merchant, unless you can
> prove fraud to some degree) there are more than likely more customers
> that will not. 

Doesn't work that way.  Issuing banks are guaranteed payment by
acquiring banks.  It's the acquiring bank that has to eat the loss,
not the issuing bank.  Issuing banks eat losses when a cardholder
defaults, but never when a merchant defaults.

And in cases where the service is delivered over an extended period of
time, the clock for when you can chargeback doesnt' start ticking
until that time period is up.  That's why acquirers don't like prepaid
plans or extended length subscriptions.  Someone like livevoip can
charge a bunch of people and the acquiring bank can be eating losses
over a year out.

Chris



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