Visa has created a new category of service provider, under which CCBill now falls, that is considered to be a “High Risk” Internet Payment Service Provider or 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 (website owners) are allowed to process and settle Internet transactions.

VISA considers any website selling downloadable, digital merchandise and/or services or those falling within Merchant Category Code 5967, to fall within the “high risk” category.

In order for CCBill.com to register you as one of our VISA Sponsored Merchants, you must:

1. Complete the VISA Sponsored Merchant Application, which requires you to provide pertinent information regarding your business.
2. 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.

For entities that provide only digital goods, presence is defined as the specific business location where the principals of the business work.

The current VISA regions are categorized as follows: Asia Pacific, Canada, Carribean & 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.

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. i.e. 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.

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 handle their processing.

VISA’s ratios for 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’s and Sponsored Merchant to remain compliant with these rules and help protect the VISA brand.

“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 could surely meet, if not 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 there after, 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.

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, at no additional cost to your Website Business. However, after careful review, a strong percentage of transactions are currently processed for consumer clients utilizing the VISA system, and you should expect to see a transaction volume and revenue drop if you choose not to offer VISA processing for your Websites.