By Chris Barton
Taranaki-based WebFarm, which offers online multi-currency credit card settlement - something no New Zealand bank can manage - may have run foul of Visa's cross-border acquiring rules.
Visa spokesman Rob Hennin said to do a transaction in New Zealand in, for example, United States dollars, the internet company must have a banking relationship with a bank in New Zealand which is multi-currency.
Since that capability is lacking in New Zealand, Mr Hennin assumed WebFarm was banking with a multi-currency acquirer outside New Zealand.
"In this case it is cross-border acquiring which is against our rules," Mr Hennin said in an e-mail, adding that he was looking into the matter.
WebFarm general manager Richard Shearer confirmed his company was not conducting transactions itself, but was doing them through British firm WorldPay, which in turn operates through UK bank National Westminster. To comply with Visa rules WorldPay would need a licence to acquire transactions in New Zealand.
Mr Shearer said he was unaware of any cross-border problem.
"We would suggest Visa take it up with WorldPay," he said.
WebFarm launched its service last May but had struggled to attract more than two local merchants because most had been put off by the six-month approval process. But a new arrangement with WorldPay announced a week ago, which has cut the approval time down to 48 hours, had renewed interest.
Mr Shearer said the service appealed to New Zealand companies offering goods for sale over the internet to offshore buyers because it enabled the goods to be priced in the consumer's domestic currency and avoided unexpected currency fluctuations appearing on their credit card bill.
WebFarm under scrutiny of Visa
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