do some vISP Providers require the virtual ISP
to prepay for
services used by their subscriber, while other
vISP Providers do not?
answering this question, please be aware that
most of Alliance Solutions' virtual ISPs do not
prepay for their services. Now to answer the
A unique aspect
of this industry is that all vISP Providers,
including Alliance Solutions, are
required to prepay (pay in advance) for all the
services they provide to their virtual ISPs.
Additionally, most vISP Providers require
that their virtual ISPs secure their own
merchant account and collect payments from
subscribers themselves. And lastly, vISP
Providers work with a very small margin on each
subscriber and do not have room for bad debt -
virtual ISPs not paying or not paying in a
timely manner for services. As a result of
these three factors, it is prudent for vISP
Providers to also require their virtual ISPs to
prepay for services used by their subscribers.
Securing and maintaining a merchant account
(required for accepting credit cards) can be
costly and administratively time consuming.
Because of this, a
few vISP Providers have seen the wisdom in
offering a shared merchant account as part of
the complete program offered to their virtual
vISP Merchant Account). In these
cases, the vISP Provider collects the subscriber
payments, subtracts the virtual ISP's wholesale
costs and remits a check for the difference.
As a result the vISP Provider receives payments
daily and the opportunity for bad debt has been
greatly reduced. The virtual ISP also enjoys
improved cash flow as they do not have to prepay
In the case of
the Alliance ISP
vISP Merchant Account to see how we
handle the merchant account issue.