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Credit card firms stop accepting charges from AllofMP3

20 Oct 2006
00:00
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[Associated Press via NewsEdge] Visa International and MasterCard have stopped accepting credit card transactions for purchases of online music made on a Russian Web site accused of selling music illegally, officials for both payment systems said.

San Francisco-based Visa asked member banks not to process purchases from AllofMP3.com as of September 1, said Simon Barker, a spokesman for the company.

'The action Visa has taken is in line with legislation passed in Russia and with basic international copyright and intellectual property norms,' Barker said.

MasterCard, the No. 2 payment system in the world behind Visa, ceased accepting credit card purchases on the Web site in early August, said Chris Harrall, a spokesman for the Purchase, New York-based company.

'MasterCard does not tolerate the use of its network for illegal activity,' Harrall said.

Charles Martin, a Washington-based spokesman for Moscow-based Mediaservices, which owns AllofMP3, confirmed that Visa had suspended payment processing services on the site, but he was not aware of any other payment vendors who had decided to do so.

AllofMP3.com typically charges under $1 for an entire album and just cents per track.

By contrast, an album at Apple Computer's iTunes Music Store and other licensed services typically costs about $10 and a song $0.99.

Earlier, a message on the payment section of the Web site notified visitors that credit card payment was not available 'at the moment.' The site directed prospective customers to make a credit card payment on another site, alltunes.com.

That site listed that it accepted payments in Visa and EuroCard/MasterCard.

However, Visa shut down payment processing for that site as of Oct. 1, Barker said.

It was unclear to what extent the actions taken by the credit card companies had affected business on the Web site.

© 2006 The Associated Press

© 2006 Dialog, a Thomson business. All rights reserved

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