Thread: Unbelievable; StormPay resorts to blackmail

Did you guys read the update from 12DailyPro?
StormPay resorts to blackmail in an attempt to steal business from a competitive payment processor (EMO).

My jaw dropped when I read it, just unbelievable.

12DP discussion:
http://forums.12dailypro.com/smf/ind...?topic=23194.0

How is that related to pips?

Ecuse me but this is the GENERAL CHAT area is it not???

And ye I read it and agree moonbear it is nothing but blackmail and I feel that it should be reported to the appriate authorities (FBI) as the office is in a city/town in Texas along with netiba.

It appears that they may have a special hidden agenda, or who is really controlling them.
Food for thought maybe or just ones mind going round in circles. s'ok as long as it's not ever decreasing circles....

Laurie

Originally Posted by OICU812

How is that related to pips?

It isn't.
This is in General area forum.

Policy Update
31-Jan-2006 14:40
Due to high volumes of fraudulent transactions made to merchants with commission based business models, StormPay can no longer process payments for those type of merchants who choose to accept more than one payment processing solution.

Using more than one payment processor is exactly the situation that “fraud” seeks out. This enables the fraudulent user to set up a fake profile with either of the processors, make a purchase or join the program, and then withdraw their earnings to the other processor where the real identity is used. This sort of activity makes it nearly impossible for either processor, or law enforcement to properly handle the fraud because the “trail” comes to an end. This is the cause for a great many chargebacks to those merchants which can be avoided.

As of 1/30/2006 StormPay must require Merchants with a commissioned based business model who choose to accept StormPay, to only accept StormPay. StormPay certainly does not wish to dictate how our merchants run their business, all merchants are free to choose any processing solution that best suits their needs. We understand you have choices and certainly hope that choice is the online leader – StormPay. However, if another payment solution is used, please immediately remove StormPay from the associated website as a funding option and continue to use the StormPay account funds to finish payments to those members who paid using their StormPay account.

At StormPay we truly care about our merchants’ and the overall success of their business and sales and for that reason we have implemented these very necessary changes. Thank you in advance for your understanding in this very crucial matter.

StormPay Inc.


Btw, it is not only EMO as in the case of 12daily. I found the following on a different forum targetting e-gold. SP just wants the monopoly.

We were recently informed that if we continued to accept e-gold and SP together SP would freeze accounts. In the interest of this program we have made the decision to remove the option to deposit from now on with e-gold and now currently are accepting ONLY STORMPAY as our method of funding.

Nothing but blackmail. Disgusting.

The date and time of StormPay's policy update basically tells the tale. They knew there would be bad press coming from this fiasco with 12DP so they're trying to make extortion look and sound plausible. I would hope that 12DP manages to extract their money or at least pool enough other money to drop SP on its arse and switch to something else entirely.

Lastly, the chance of fraudulent funds is practically impossible with the way 12DP handles things. If you upgrade with SP, you get paid to SP. If you upgrade with EMO, you get paid to EMO. Where's this swapping and mixing of funds able to happen? It is just plain, unadulterated, bull****.

Hello All

I understand peoples frustration. Especially is they were orginally with Egold and then EMO. BUT really do you think that STormpay decided to do this and NOT know that many people would despise this decision? Do you think they did this to make them look good in the eyes of hundreds of thousands of potential customers? If they just made this decision on a whim then this is the most *****ic, damaging marketing decision a company had ever made on the internet. Maybe maybe Stormpay is being pressured to change their policies by outside sources? I am not trying to stand up for Stormpay. I always thought their fees were ridiculous. But there may be more to the story than even Stormpay is saying.....

Maybe, but I think it comes down to the greed factor. When 12DP decided to drop Egold I'm sure SP was smiling inside. However, once they found out that the majority of those Egold customers had selected EMO AND that 12DP was going to pull a very large amount of money out of SP to pay it's EMO-using customers, they decided to move. Most people are pretty saavy when it comes to saving some of their money. SP wouldn't have been able to compete in a head-to-head matchup with EMO simply from the "cost of service" aspect.

What bothers me the most is that SP could block legitimate money withdraws with no real cause. If they can threaten to steal 12DP's money outright, the individual members' SP funds wouldn't even cause them a pause. Very shady if you ask me...