I thought that this was appropriate considering my latest post.

First Data recently released a program for high-risk businesses so they would not have to go to an offshore or 3rd party processor. Not all high-risk businesses can use this program, but it does allow some of the industries that were previously considered too risky, to process with First Data. Card Service International could take some of these businesses before, but now any ISO that has the ability to sign with the tier 2 program can service these businesses without referring them to CSI.

Businesses that can process with the tier 2 program:

• Adult Products/Merchandise-Not Unqualified (Non Graphic Images)
• Auction Houses
• Charities (other than well known events or causes which are Low Risk)
• Companion/Escort Services (Non-Adult)
• Coupons/Certificates
• Custom Made Items (Except Golf Clubs)
• **Dating Services (on-line, no Adult)
• Diet programs/vitamin sales/herbal remedies-Via MO/TO or Internet
• Discount Buying Clubs/Home Shopping Clubs
• Financial Aid/counseling/student loans/scholarship search services
• Financial Consultants
• Flea Markets (Defined as firms/individuals operating from a Booth, on a part time basis with no lease or telephone availability; whether indoors or outdoor)
• Fortune Tellers (Brick and Mortar)
• Fulfillment Centers (not Aggregators which are Unqualified)
• Gambling advice/Sports Forecasting or Odds making (unless audio or video text which require Visa Registration)
• Membership Clubs -Health and Sports (Extended Memberships)
• Import/Export (Non Mag Stripe or MO/TO)
• Investment Programs/ Opportunities/Seminars
• Pseudo-pharmaceuticals (anti-aging pills, Sex Nutrients, etc.)
• Real Estate Agents/Brokers engaged in vacation
• beach or ski home rentals.
• Seminars (including Real Estate)
• Shippers/Forwarding Brokers and Motor Freight Carriers
• Subscription Services (magazine, newspaper, newsletter).
• Telephone Services/Prepaid Cards
• Theatre/Concerts
• Ticket Brokers
• Timeshare
• Timeshare Advertising Services
• Travel Agents/Tour Operators
• Travel Clubs
• Water Filters/Purifiers
• Door to Door Sales

As I understand, not all First Data ISO’s are allowed to sign businesses on the tier 2 program. Also, these businesses will have to pay a slightly higher rate, but it should be very reasonable when compared to an offshore provider (~ + 10 - 20 basis points, and $.05 - $.10 above a standard rate).