ICC-Cal Sees Big Dip in Revenue Without Porn, Gambling
Earlier this month, ICC-Cal said that the storm of events last year caused it to see net profit fall 20 percent. Porn and gambling clearing activities made up a majority of its income in 2009.
The company, formally known Israel Credit Cards-Cal, received fines totaling about $20 million from both MasterCard and Visa last year over alleged excessive chargebacks and instances of fraud, forcing its president to resign and making it scale back porn and gambling. The processor also received demands from the Bank of Israel for changes in its procedures.
Visa complained of excessive chargebacks, particularly in relation to porn sites, as well as nutriceuticals. MasterCard's complaints were related to ICC-Cal's alleged clearing services for gambling sites, which it is accused of hiding by using false transaction code numbers.
"We mainly devoted 2010 to dealing with the crisis," said ICC CEO Israel David.
ICC-Cal earlier this month reported that revenue from online clearing activity fell 72 percent in 2010. It also reported that it posted a $3.6 million loss on its international business in 2010, compared with a profit of $12 million in 2009. Total revenue fell five percent to $307 million in 2010 from $323 million in 2009.