Authorize.net enforces TOS based on Dollar Volumes?

[john777]

Authorize.net does not allow internet tobacco sales, right?    http://www.authorize.net/company/terms/

2. LAWFUL USE.

You agree that You will not at any time conduct Your business in any manner that directly or indirectly offers, sells, leases, licenses or displays, delivers, advertises, recommends, or promotes any product(s), service(s), data, information, image(s), text and/or any content which:

1. is unlawful or violates any applicable local, state, federal, national or international law, statute, ordinance, or regulation including, without limitation, Credit Card Association rules, consumer protection law, Internet tobacco sales, firearm sales, unfair competition, antidiscrimination or false advertising.

I'm really curious how there are a ton of companies online selling tobacco using Authorize.net when its against their TOS.  I'm wondering what Auth.net CEO is getting a kickback from these companies.   I asked Auth.net in March about it and yet all the companies in question are still using Auth.net for internet tobacco. 

Here are a few examples:

http://www.miamicigarshop.com

http://verify.authorize.net/anetseal/?pid=d945bf96-481e-49e8-a93b-fd4718232f17&rurl=http%3A//www.mia...

http://www.tophatcigar.com/
http://verify.authorize.net/anetseal/?pid=d62a6ca0-b6be-4f59-8cd7-bf476c7a4dd8&rurl=http%3A//www.top...

http://www.cigar5packs.com/cigar-brand-under-40-dollars/garcia-y-vega-packs-350.html
http://verify.authorize.net/anetseal/?pid=be25673a-3834-4891-aff1-3e2541c28f0f&rurl=http%3A//www.cig...

[Michelle]

Hi john777,

Thanks for brining this to my attention. You are correct, Authorize.Net does not allow Internet tobacco sales and we in no way base those rules on dollar volumes. I will follow up with our abuse department to make sure they take the appropriate action.

Thanks again,

Michelle 

Developer Community Manager

[john777]

Well its 7/9/2010 and your policy has not been equaly enforced.   It seems even with your "follow up" that your abuse department still makes their own rules based on how much income the account brings.   Or perhaps someone is getting a kickback from a tobacco shop for allowing the accounts to continue to operate.   It might be time for me to contact an attorney and file a suit against Authorize.net.

http://verify.authorize.net/anetseal/?pid=d62a6ca0-b6be-4f59-8cd7-bf476c7a4dd8&rurl=http%3A//www.top...

http://verify.authorize.net/anetseal/?pid=be25673a-3834-4891-aff1-3e2541c28f0f&rurl=http%3A//www.cig...

The websites mentioned STILL use Authorize.net for processing tobacco transactions online. 

Perhaps legal action is going to be necessary to get some attention on this matter.

[john777]

Its been another week and no response.  How about that!   What did they do, fire you for pushing the subject?  If so, I feel bad.   However it just further shows the higher up's in the company are being paid off or something to ignore the fact that companies are still selling tobacco online through their service even after private and PUBLIC notification on their very own community forum.

Consumers looking to use authorize.net beware.   This is a perfect example of the customer service you get from this company.   Even after several complaints by email and even on their public community forum you can clearly see that authorize.net ignores customers and does not enforce their TOS equally.   Knowing that they can lock your account without any prior notice for what they feel is "wrongdoing", who in their right mind would use Authorize.net for money transactions.  

CONSUMERS BEWARE OF AUTHORIZE.net

[martinb0614]

Dear John777

You really need to mind your own business. Is not cool when you have another guy or company trying to shoot you down just because they cant get the services or products. And for the record nobody is getting no kickbacks ok. All companies that use Authorize.net are just trying to survive and make a leaving in this economy, is not like they selling drugs or something.

So please stop it with you comments and post ok. They are other payment gateways that you can use if you trying to open a company just in case you couldnt get Authorize.net just look around in google.com ok

Just like Authorize.net there is PayPal that does not allow for you to accept money for Tobacco but you dont see us putting comments or giving out names. If we cant get it we cant get.

Just stop putting your comments and focus on researching in other payment gateways.

Get a life.

Joana Sanchez

[john777]

A company has a TOS for a reason, to have fair terms of service which applies to ALL their customers.  

If Authorize.net states that their gateway cannot be used to sell CARS and your account was terminated because you sold cars, would you sit there nice and quiet while they continue to allow hundreds of other companies to sell cars using their service when its against their TOS?  I highly doubt you would.   So don't tell me to mind my business and shut up so you don't get caught.

It sounds to me like you are one of the companies that Authorize.net is allowing to use their service against their posted TOS.   Are you just hoping that nobody notices??  Is that why you are mad that your company was mentioned?  I have a list of almost a hundred others who are in violation of their TOS and nothing is being done (YET).

If you are in violation of their TOS and perhaps you should start looking for a new gateway fast before your account is frozen.    Authorize.net will enforce their TOS equally or they will face legal action.   If you don't want caught up in the mess, then I suggest you use one of those other services you mentioned that allow tobacco.   If you continue to use Authorize.net against their TOS, then you will be included in the lawsuit & investigation.   How is that for "cool"?

[stymiee]

1) I don't know who you are but you sound like a kid who got excluded from a game of dogeball with the way you rant and threaten lawsuits. Please save your temper tantrums for someone else. They serve no purpose here.

2) Just because Authorize.Net has not been in communication with you and/or you do not see the results you are expecting does not mean Authorize.Net is not reacting to the issue at hand. They are not obligated to keep you informed nor to do things on a timetable you deem appropriate.If they say they are working on it we should assume they are indeed doing so. If you wish to be informed of their progress send them an email or call them and see if they will do so. But littering this thread with juvenvile posts won't encourage them to do anything for you.

3) Warning others to stay away from Authorize.Net because they haven't shut down sites that you think are violating their terms of service is unwarranted. You're trying to convince others not to use Authnet simply because they aren't catering to your whining. Authorize.Net offers excellent services and hundreds of thousands of websites and retail stores successfully process millions of dollars a day without issue. I wholeheartedly endorse their products and will continue to do so.

4) Your lawsuit claims are frivilous and without merit. To anyone reading this you may ignore it as there is no chances of anyone being sued for this.

I'm guessing those sites you are trying to get shut down are competitors of yours and you're upset that they are processing online and you're not. Or maybe you got rejected for an account for some other reason and now are out to get anyone else you can simply because you don't take rejection well. I don't know which is the case but please spare this community your ranting and raving. It helps nobody and just makes you look silly.

[john777]

Well stymiee, it appears you need to study a little before you open the trap.   If anyone is a "kid", it is you trying to take this to some personal level with your dodgeball comments.   (how old are you?)  Note the facts and either reply like an adult or move along.   Your comments make you sound like you just walked off the playground and want to debate the reason why I've brought this up versus the actual fact that Authorize.net is not doing what they state in their TOS.   My intentions are to have equal TOS enforcement.   Not based on a retailers sales volume, kickbacks, or whatever the reason they are able to elude the TOS that others are terminated for. 

FACT:  Authorize.net TOS clearly states that internet tobacco sales are NOT allowed.

FACT:  Authorize.net has allowed several companies to continue to use their service for internet tobacco sales for more than 90 days since they were notified of the TOS violation.

FACT:  The TOS violators listed do have Authorize.net on their website, use Authorize.net for the transactions, and have a "certified seal" from Authorize.net stating they are an approved merchant (while at the same time violating the TOS)

FACT:  Authorize.net can be held accountable for creating unfair competition in the marketplace by not equally enforcing their TOS.   They are a money processor and I'm sure that other rules and regulations apply for equal treatment of consumers money handling for such a business.

If anyone looks silly, its you for trying to make people think its fine that Authorize.net is two faced with their TOS.   But since you think you have some merit, explain why the companies listed are selling tobacco online using Authorize.net when its listed as not allowed in their TOS.

[stymiee]

You completely missed the point. You have absolutely no idea how Authorize.Net is handling this. You do not work for them and are obviously not privy to inside information about policy enforcement. So you cannot say they are not doing anything about this. You need to be patient and wait for them to do whatever it is they are going to do. Threatening to sue and telling others to stay away really is premature and immature. You reported those to Authnet. Now let them handle it without being harassed by you.

[Michelle]

Hi john777,

Authorize.Net’s Abuse Department is aware of your report and is reviewing the matter.

Please understand that this community is designed for developers to receive assistance regarding integration issues and is not the appropriate place to report potential violations. Please feel free to continue to send those reports to abuse@authorize.net.

Thanks,

Michelle

Developer Community Manager