No pics in this post, but just wanted to mention that earlier this week Mastercard ruled against "cross-sells" which are when a site puts a bunch of additional things to buy on the checkout page. Typically they're toward the bottom of the page below the submit button and they're prechecked. The end result is that you could sign up for a $1 trial and managed to get billed for 4 or 5 other things at $30 each. So you thought you were spending $1, but your credit card gets billed $150 or more. Then it gets worse, you call to cancel and find that that all of the different items were billed by different companies. You'll see things like computer support agreements, etc.
The new Mastercard rules change all of that. Now businesses can only cross-sell their own services. So the worst case scenario is that you sign up for Site A and you also get signed up for Site B or maybe a hookup site run by the same company. This will drastically cut down on the problem. The requirement is that things can't be cross-sold unless they're routinely sold through the same merchant account, so at a minimum there's only one place to call to cancel everything, and if there are problems the merchant account that's causing the problem is held responsible (and can get revoked if there are enough complaints).
Now, I don't know exactly when the rules go into effect, and they'll be stronger when Visa adopts similar rules, but hopefully this is the beginning of the end for really slimey sales tactics. If you've gotten burned in the past, it should be safer to buy porn in the near future.
Comments
Dean (December 28, 2008 06:09 AM)
Thanks for the info Rawtop!
If this was passed by mastercard only, I'm gonna guess that it's NOT part of the congressional bill that puts an end to other sleazy credit card practices (raising interest rates on past balances, raising rates for unrelated credit infractions, etc). It's a bill FULL of stuff long overdue, but doesn't go into effect until july, 2010. Long-overdue Justice comes to those who wait.
My personal credit-card beef at the moment: I like to use GREENDOT pre-paid credit cards for online purchases. It completely separates online transactions from my bank accounts. WAL-MART has combined their 'WalMart moneycard' into the GreenDot system, with a bit of a discount on starting and re-loading your account. You do need to register regular and walmart greendot cards with your address, date of birth and SSN.
I've discovered that, unlike traditional Greendot cards, the ones sold at Walmart have restrictions against being used for any websites they consider 'adult'. Including donations to World Aids Day funds! A couple overseas adult (and gambling) sites have so far escaped their disqualification list, however.
They make no mention of this limitation in any of the fine print that accompanies the card or their website. Several phone calls only gave me the poorly translated explanation that "since minors are able to purchase the cards, safeguards were put in place to protect them from adult material" (on the random chance that they provide matching address, phone, SSN and DOB info to a real adult)
No idea if this will eventually spread to Greendot cards sold at CVS, Rite-Aid, grocery stores, etc. But for now, those are still good anywhere.
Many (but not all) Visa, MC, and AmEx 'gift cards' also have similar restrictions, so be sure to call and ask before you buy them. It's a $4.95 or $9.95 waste of money that helps stupid people arbitrarily 'nanny' your spending habits.
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