Does anyone know which banks are acting as the acquiring banks for Splitit?
Splititi is a platform and payment gateway, and it relies in acquirers, per the prospectus page 19
Whats interesting is this statement From 1.1 ( C)
"How it works"
(vii) the customer may track his or her instalment payments and view the amount of available credit that he or shemust maintain on the credit card by logging on to the Splitit customer account online at customer.splitit.com.
This is worrying for two reasons; a) what happens if the customer's card is overlimit at time of next instalment, or, the card is closed"? b) why hasnt Split it set up a Split Payment ( I kid you not) per the standard Visa Operating Rules https://usa.visa.com/dam/VCOM/download/about-visa/visa-rules-public.pdf ,
Section 5.8.4.2 Prohibition against Split Transaction
A Merchant must not split a transaction by using 2 or more Transaction Receipts, except for thefollowing:l Prepaymentl Individual Airline ticketl Ancillary Purchase Transactionl Individual Cruise Line ticketl Installment Transaction
Now given that an installment transaction is a standard element of the Visa (and presumably) mastercard network, and even, as the name suggest, splitting it is common as muck, whats novel about Splitit?
Whats concerning is that the rules go on to say that if teh ACquirign bank sets this up properly, then this : (vii) the customer may track his or her instalment payments and view the amount of available credit that he or shemust maintain on the credit card by logging on to the Splitit customer account online at customer.splitit.com. " can never happen, as the issuing bank will guaranteed the installments.
Does ASX SPT have this right? Who is their principal member bank acquirer? Why have they not set up "split" installments correctly to avoid liability?
Anyone know?
SPT Price at posting:
$1.62 Sentiment: Sell Disclosure: Held
