FAQs

IPSP FAQs

  1. What is an IPSP?
  2. What type of Sponsored Merchant Web sites fall into Visa's "high-risk" IPSP Category for processing?
  3. How do I register with CCBill to become a Visa USA Sponsored Merchant?
  4. What are the current Visa regions according to Acquiring Banks?
  5. What does Visa USA mean when they state that an IPSP can only register Sponsored Merchants in the Country where the Sponsored Merchant has a presence?
  6. Will Sponsored Merchants be required to register and pay the initial $750.00 fee to EACH IPSP that processes for their Company?
  7. What information does CCBill share with Visa?
  8. What are Visa's chargeback ratios and have they changed?
  9. Why wouldn't it be more cost effective for a Webmaster to go out and get their own Merchant Account instead of continuing to use a Third Party Processor IPSP like CCBill.com for their Visa transactions?
  10. If I choose not become a Visa USA Sponsored Merchant, can I still process through CCBill.com for other Credit Cards and Online Checks?
What is an IPSP?

An IPSP is an online entity that enters into a contract with an Acquirer (Merchant Bank) to shoulder financial responsibility and liability for "high risk" Merchant accounts, by which registered sponsored Merchants (Web site owners) are allowed to process and settle Internet transactions.

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What type of Sponsored Merchant Web sites fall into Visa's "high-risk" IPSP Category for processing?

Visa considers any Web site selling downloadable, digital merchandise and/or services or those falling within "Merchant Category Code 5967"—the "high risk" category.

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How do I register with CCBill to become a Visa USA Sponsored Merchant?

In order for CCBill.com to register you as a Visa Sponsored Merchant you must:

  • Complete the Visa Sponsored Merchant Application, which requires you to provide pertinent information regarding your business
  • Pay an Initial Registration Fee of $750

Upon receipt and review of both of the above, CCBill will submit your application to Visa on your behalf. Visa generally takes between 7-21 business days upon receipt of the application and fee to process your registration information and provide CCBill with their decision.

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What are the current Visa regions according to Acquiring Banks?

The current Visa regions are as follows: Asia Pacific, Canada, Caribbean & Latin America, Central & Eastern Europe, Middle East & Africa (CEMEA), European Union and US. Click here to see a list of countries that fall within each Visa region.

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What does Visa USA mean when they state that an IPSP can only register Sponsored Merchants in the Country where the Sponsored Merchant has a presence?

Under the new Visa USA regulations, an IPSP will only be permitted to register Sponsored Merchants for processing if the Sponsored Merchant has their corporation based in the same Country as the IPSP's Acquiring Bank for Visa transactions. For example, CCBill currently has a banking relationship with an acquirer for Visa USA, and thus can handle high risk processing for any Sponsored Merchant based in the US.

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Will Sponsored Merchants be required to register and pay the initial $750.00 fee to EACH IPSP that processes for their Company?

Yes, Sponsored Merchants will be required to both register and pay the up-front registration and annual fees to each IPSP they choose to have to handle their processing.

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What information does CCBill share with Visa?

Under Visa regulations, IPSPs are required to provide Visa with each Sponsored Merchant's monthly sales, chargeback, and credit data for each of the Sponsored Merchant's billing URL's.

After review of this information by Visa, the Sponsored Merchants who are out of compliance on chargeback ratios may be terminated at the discretion of Visa.

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What are Visa's chargeback ratios and have they changed?

Visa's ratios for High-Risk (MCC5967) are as follows:

  • 1% for Total Consumer Generated Transactions (domestic & international combined)
  • 2.5% for International Consumer Generated Transactions

These ratios have been in effect for some time now, and each IPSP is responsible for its Portfolio's compliance to these governing ratios. It is the responsibility of each Visa IPSP and Sponsored Merchant to remain compliant with these rules and help protect the Visa brand.

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Why wouldn't it be more cost effective for a Webmaster to go out and get their own Merchant Account instead of continuing to use a Third Party Processor IPSP like CCBill.com for their Visa transactions?

"High Risk" Merchant accounts are extremely expensive, and require a large amount of maintenance and support. The initial fees associated with opening a "High Risk" Merchant account will quickly surpass Visa's IPSP registration fee for Sponsored Merchants. In addition, owning and maintaining one's own "high risk" Merchant account can put added financial and operational strain on an online Company by requiring them to make major investments in Customer Support, Fraud Prevention, and Automated Reporting.

In addition, once a "High Risk" Merchant account is created, its owner and its operating URL's are on Visa's monitoring. If that same "High Risk" account is closed thereafter, the account's owner and/or its operating URL's will no longer be afforded the future opportunity to register within the umbrella of an IPSP portfolio.

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If I choose not become a Visa USA Sponsored Merchant, can I still process through CCBill.com for other Credit Cards and Online Checks?

Yes, CCBill.com will continue to offer you the option of transaction processing with the following Credit Cards: MasterCard, Discover, or JCB; and/or Online Checks and Single Telephone Billing, at no additional cost to your business. However, you should expect to see a transaction volume and revenue drop if you choose not to offer Visa processing for your Web sites.

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