Some of the note payables were due today, March 29.
“We don’t know yet [the resolution],” IBD President Gary Spaniak told XBiz. “But so far we’ve paid companies $22 million. We’re still working on the notes.”
IBill last year negotiated deals with some companies after the third-party processor had problems paying clients when credit card processor First Data withheld funds and dropped its account.
In related news Wednesday, iBill has decided to outsource its online payment processing to Etelegate.com, an unrelated third-party processor that converts credit cards, checks, Web 900 and dialer transactions.
Etelegate, billed as “the offshore billing company,” claims it is the “worldwide leader” in high-risk online payment processing, according to its website. XBiz could not reach company officials Wednesday for comment.
IBill said the decision to outsource came as a response to the company’s “desire to provide its clients with the newest advances in online payment processing.”
Steve Markley, IBD’s CEO, said iBill's current payment processing software is eight years old. “This decision should allow our clients to utilize the newest, cutting edge technology with a new interface," he said.
Spaniak also said that outsourcing processing is designed to help the company continue building a presence as a sales, marketing and media company.
Some online adult companies as recently as this week said they had difficulty processing charges through iBill. Those companies received timeouts or declines, receiving messages that included, “Please be advised that some clients may experience intermittent issues with signups.”
Earlier this month, iBill said the company would no longer be processing tangible goods and was discontinuing its Catalog Shopping Cart option for clients.
Based on the terms and conditions of the latest agreement, Etelegate will earn a percentage of net revenue generated by all existing iBill accounts and any future referrals, Spaniak said. Client services will remain with iBill while Etelegate will handle the actual transaction processing.
Spaniak said that the processing changeover is effective sometime this week.