The Federal Reserve announced new rules on Thursday that will prohibit banks from automatically enrolling customers in so-called overdraft protection programs, which charge high fees for exceeding the balance in an account.
MACH's Direct Billing Gateway provides an operator billing service for mobile applications, content and mobile internet services, allowing providers to charge subscribers for services direct to their mobile phone bill or pre-paid balance.
Very often, balances on these introductory offers not only begin accruing interest after the grace period expires, they also charge back interest on the balance at the regular rate for all the no-interest months.
To make a long story short, card issuers have raised balance transfer rates and fees big time, so many cards that used to charge 2-3% are now charging 4-5%.
But he said the challenge for media organizations was finding a balance between advertising and subscription revenues and figuring out how to charge for content without alienating existing users -- which could lead to Web sites offering tiered levels of free and paid-for material.