Internet Credit Card Tobacco Purchases

[hayward_tenney]

http://www.cigarpass.com/forums/inde...howtopic=52544

Bank of America letter received earlier this week "We are tracking card activity which may be considered "high risk" or may involve additional responsibilities for us which are not cost-justified, and have found such activity in your business. Our transaction analysis shows that your business is currently in Merchant category code (MCC) 5993, processing tobacco sales in a "card not present" environment, where face to face with your customers and not properly registered with the card organizations (Or Bank Of America) to do so.
Bank of America Merchant services does not support card not present transactions in (MCC) 5993. Therefore you must discontinue card not present transactions and attest to that you will not resume this practice in the future.

It goes on to tell me if I don't, I violate my agreement and will be dropped, etc., etc.

I urge you to call Mastercard and Bank of America and let them know about this. I am dropping Bank of America and I would ask you to do the same if you feel this is unfair. I have put a call into my landlord that is a whiz attorney when it comes to suing corporations to see what he thinks and if we can all get together and do something about this.

This letter was sent to me by

Susan Willet (Bank of America) here is her direct line to let them know how you feel. 502-315-5644 please make this call guys.

This is a direct attack on small business, not just tobacco. If they get away with this, they will be able to dictate whatever is sold in interstate commerce. Discriminating wherever and whenever they see fit. As you see by this letter it doesn't matter which card you use because the Merchant service account is who runs. them all Visa, MC, Amex, Discover, Diner's club etc.

Please keep this topped and get involved or you may no longer be able to order your cigars from out of state.

Al

[hayward_tenney]

Later in the thread, someone explains that MC is pressuring their processors (including BoA) to:

disallow these transactions and cut off folks that don't comply. But, understand that while MasterCard is driving this one, transaction processors won't process ANY credit card transactions they feel are "risky". So, it won't matter if you have a Visa, AmEx, or other credit card if the transaction processor won't process the sale.

[tekeeladude-cl]

Unfortunately this happens to many of the small on-line tobacco retailers. If you happen to have a B&M and sell online the processors will usually leave you alone.

[Coop D]

get the 3 digit code on the back of the card. that's what we do with phone orders and internet orders.

[Doogie]

what BS. I would cancel also

[costaricanimports]

There is a company in miami that specializes in tobacco sales for merchants, if you would like more info PM. cause your right it is not fair.

[mc2712]

Originally Posted by Coop D

get the 3 digit code on the back of the card. that's what we do with phone orders and internet orders.

So that 3 digit code is that important when making transactions on the net or phone. I was wondering why you are never asked for that 3 digit code when you buy something in person.

[sboyajian]

Originally Posted by mc2712

So that 3 digit code is that important when making transactions on the net or phone. I was wondering why you are never asked for that 3 digit code when you buy something in person.

a card scanner doesn't record the security code.. so if someone steals your card info with one of those reader devices, and uses it online, it has to be somewhere that a security code is not asked for.

In person, you physically have the card. No need for the code.

[costaricanimports]

Originally Posted by mc2712

So that 3 digit code is that important when making transactions on the net or phone. I was wondering why you are never asked for that 3 digit code when you buy something in person.

Also, the way I understand it, it determines the fees the merchant is charged. The more info you have the less charged, the persons address, 3 digit code, baby's daddy mammas name. ect. the less is charged to the store for that transaction.

[dinoa2]

just one more example of the all powerful credit industry putting the screws to indiviiduals and businesses. any excuse for them to make more money or cut their expenses at our expense. will now take one step down from the soap box

[Corona Chris]

Does anyone know if there are any news articles about this?

[undergroundspy713]

Just use the AMEX Centurion card my friend...LOL!!!

[nativetexan_1]

I'd say you need to scan the letter in so we can all see it. Otherwise, I'll wait for the New York Times report.

[idbigboy]

And to think we bailed them out too!!

[Architeuthis]

Originally Posted by mc2712

So that 3 digit code is that important when making transactions on the net or phone. I was wondering why you are never asked for that 3 digit code when you buy something in person.

Some systems also need the zip code to complete the transaction. My most recent experience ringing these up the system asked "Card present?" and you could click either yes or no. Heh... I always chose "yes"...