“IBill is the most recognizable name in payment processing,” Gary Spaniak told XBiz. “There has been a history of fantastic customer service. This history can’t be denied, and we want people to come back.”
IBill’s troubles date from its notification by First Data that it was dropping iBill from its merchant account. IBill tried to secure another merchant account holder and, according to some, failed to tell its clients. Webmasters were frustrated in their attempts to contact the Florida company, which until recently, was one of the top IPSPs along with CCBill and PayCom.
Spaniak maintains that iBill is on the road to recovery. Interactive Brand Development (IBD) purchased the floundering Deerfield Beach-based IPSP from a consortium of companies including Penthouse. The sale was finalized January 28.
“People know that IBD could have pulled out of the deal,” he said. “And we want people to have confidence in us because we stayed to help the company.”
Spaniak added that IBD’s 35 percent ownership in Penthouse and 25 percent ownership of broadband adult delivery system XTV make iBill a more attractive company.
IBD recently secured the services of Dallas-based Corporate Revitalization Partners (CRP), a turnaround firm well-regarded in its own industry, having won the Turnaround Managers of America “Turnaround of the Year” award in 2004. CRP representatives stayed on site in Florida for about six weeks, Spaniak said, and will be on retainer until June.
“IBD dealt with the morale, CRP dealt with the infrastructure,” Spaniak said, “without emotion.” The offices were reduced by 75 percent and almost 200 people were downsized, leaving a workforce of 60. “We are a lean, mean, billing machine.”
The remaining employees felt for the first time they were part of a team, Spaniak said, and their input is being taken seriously. Two employees were added, an attorney and a negotiations specialist, who will deal expressly with webmasters who need to collect on monies owed from the First Data account, an amount that is estimated at around $21.6 million.
Monies not owed from First Data will be repaid via a two-year promissory note, Spaniak said. Webmasters need only talk with one of the two new employees to arrange a payout plan if they do not want to take the promissory note route.
In addition, IBD is instituting a multi-level payment plan that includes an opt-in choice to receive payments daily. “We don’t want to touch the webmasters’ money,” Spaniak said. There are also plans afoot to create a program to drive traffic to client sites, as well as the release of a Gkard Visa and an advance payment option.
When asked if old customers had been lured back to the new iBill fold, Spaniak said yes, although he did not say which ones.
Spaniak said that the worst of iBill’s troubles are over. While there are still lawsuits pending against the company and a great deal of money yet to be paid to webmasters, “the feeling is one of great hope,” Spaniak told XBiz. “Webmasters have suffered enough.”