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FIB - Scams 101 - Ye Olde Archives
Posted By: Mel. White In Response To: Another Hidden Issue Here (Tom Brownsword)
Tuesday, 14 February 2006, at 5:31 p.m.
> "In a statement issued yesterday through her attorney, Ms. Johnson
> (note: Charis Johnson, the owner of 12DailyPro.com - Tom) blamed a
> commercial dispute with StormPay for the unavailability of funds owed to
> 12dailyPro members. Ms. Johnson said StormPay demanded it be the exclusive
> provider of payment services for 12dailyPro, then soon after froze the
> accounts and funds after 'falsely accusing us of misrepresenting our
> business model.'"
Since, as I (and others) have pointed out, it is NOT a viable business model... I kind of suspect that what they turned into StormPay and what they ended up with was different.
> This is another huge issue: StormPay demands that they be the exclusive
> payment processor for just about anybody that uses them
That would certainly be a reason to NOT use them. I have wondered about the viability of StormPay for quite some time. I think the "exclusivity" issue stems from them not getting any customers on sites where other processors (notably Paypal) are allowed.
> From reports that I've seen on other websites (including a direct quote
> from StormPay that was distributed to all PayDotCom.com affiliates and
> merchants, of which I am one), StormPay did not give any advance notice
> for this and pretty much demanded immediate compliance.
If someone has defrauded them, they do have that right. They don't have to "wait while someone gets into compliance." Given the Ponzi-like structure, allowing "time to get into compliance" could have serious financial consequences. Freezing an account immediately on notification of a fraud (remember that a tv station investigated them after some complaints... this was a week or so ago... and at that time something was said about fraud/criminal investigations that were ongoing.
> If it turns out that an autosurf company is legitimate and was forced out
> of business due to StormPay freezing their account, it could get real
> interesting, Terms of Service notwithstanding.
I don't think that was it. The business model doesn't work, as proved years ago. I think the business model submitted to Stormpay ... lacked some essential details.
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