"Please know that paying our clients is our highest priority. iBill is continuing to negotiate the release of settlement funds being withheld by First Data in order to pay our clients. In addition to our continued negotiations with First Data, we are working on freeing up additional capital to speed up the remittance of past due payments to our clients.
As you all know, we have been working through the difficult issue of transitioning our domestic IPSP business to our new domestic merchant bank at a pace that was faster than what was initially proposed or had been planned.
In order to ensure proper compliance for our US sponsored merchants we will not be accepting Visa transactions until each U.S. sponsored merchant has completed their new iBill merchant agreement with our new domestic bank.
All U.S. clients will continue to have the ability to offer MasterCard, Discover, JCB, American Express, Online checks, Web 900 and WebPhone. iBill account managers will have agreements available on Friday, Oct. 1st. Planned implementation is scheduled for as early as Friday, Oct. 8th.
To further clarify, iBill EU clients are not affected by this and will continue to process Visa without interruption.
Going forward, iBill will continue to operate under three business models:
— iBill Direct US. iBill has an agreement with a domestic association-registered party. This involves processing and settling with a domestic bank. In this model, iBill will sponsor and accept the risk on behalf of our clients. Not only will clients have the ability to take advantage of the iBill products and services that they know today – 24X7 customer service, risk management, RevShare affiliate program, and password management – but, they will now be funded directly by the bank and will have the option to be funded daily. We are extremely excited about this program and feel that it puts us steps ahead of our competition.
— iBill EU. iBill will continue its current processing relationship in the EU. The program services remain the same and will continue to be expanded. We are also moving forward with establishing a direct merchant relationship with our EU processor and bank. This option will be similar to iBill Direct US, which allows for direct funding from the bank.
— Asia-Pacific Merchant. iBill has established a merchant relationship in the Asia-Pacific region. More details to follow next week.
We appreciate all of the support that our clients have given us over the last few days. We know how serious this matter is to you. Please be assured that everyone here at iBill is working diligently to correct these matters so that we can all return to business as usual."