WikiLeaks To Sue Visa/MasterCard
An anonymous reader writes "After six months of financial blockade by Visa and MasterCard, during which they claim to have lost over $15,000,000 in donations, WikiLeaks and Datacell are filing a complaint against the two financial giants, with plans to litigate should the block not be lifted. WikiLeaks stated, 'On June 9th the law firms Bender von Haller Dragested in Denmark and Reykjavik Law Firm in Iceland acting on behalf of DataCell and WikiLeaks told the companies that if the blockade is not removed they will be litigated in Denmark and a request for prosecution will be filed with the EU Commission.'"
Visa and Mastercard are payment processors, it's not their place to decide where one can and can't buy things and it's not their place to make moral decisions on behalf of their clients. Given how there are only 4 major options and that American Express and Discover have much smaller networks and are frequently not accepted, I can't see how Visa and Mastercard can possibly be allowed to continue these shenanigans.
Sounds like they're using the playbook of a MAFIAA lawyer (for every dollar of possible revenue demand at least twenty thousand in damages),
Then again, if people donate 16 million bucks to Wikipedia just to get rid of that teaser image of Jimmy Wales' face this might not be that far off after all.
ummm not related
Spam account.
... and what about Postfinance? The Swiss Bank had closed the accounts of Julian Assange and as Switzerland is one of the financial nerve centers of this planet Wikileaks should consider sueing them too.
"...for everything else..."
http://www.youtube.com/watch?v=jzMN2c24Y1s
"Flyin' in just a sweet place,
Never been known to fail..."
The fact here is: :)
Someone in the US Government told Visa and Mastercard to get rid of this customer.
Visa and Mastercard get in touch with Datacells acquirer (http://en.wikipedia.org/wiki/Acquirer) and ask if this customer really is what it says it is, and if due dilligence is done. Actually, Visa and Mastercard demands that the acquirer visit every new customer, to verify that they really are a restaurant etc (which they obviously almost never do).
Datacell has told their acquirer that they accept payments for "datahosting" or something like that, but in fact their only business is collecting donations for Wikileaks. This is violation according to visa and mastercard rules. So datacell/wikileaks fucked up, easy as that. Now no other acquirer dear to accept them as a customer
If you don't like VISA or MC, don't use it. There are plenty of ways with which to wire money. Grow up people.
CAPTCHA: Puberty
Should have used Bitcoin. No worry there. Right? Right?
The CC companies' lawyers will crush Wikileaks into the ground, with 99% certainty. They're just not big enough to get justice here.
It's better to vote for what you want and not get it than to vote for what you don't want and get it.
- E. Debs
its OUR place to decide what a company can do or not, who it can render services to or not, if that company is a practical monopoly.
you cant monopolize the lives of people, and still do whatever you will. period.
Read radical news here
Mastercard and Visa are not even independent of one another. Most larger banks (at least here in Europe) issue - and earn money from - both cards. This means that the banks do not actually want to cards to compete with each other. So Mastercard and Visa put on a show of competing, but in reality are quite happy to just divide the market between themselves, and keep any other payment method from getting to big.
The result is that Mastercard and Visa often act in lockstep - just as they have done in the case of Wikileaks. If they were genuinely independent, and competing with each other, one of them would have been more than happy to take the other's transaction fees on 15 million quid.
Enjoy life! This is not a dress rehearsal.
Datacell has told their acquirer that they accept payments for "datahosting" or something like that,
You assume this, or you know this to be a fact? Its possible that Datacell gave an accurate description of their services.
Actually, Visa and Mastercard demands that the acquirer visit every new customer, to verify that they really are a restaurant etc (which they obviously almost never do).
So the acquirer 'fucked up'. That may make them liable for part of the damages.
Someone in the US Government told Visa and Mastercard to get rid of this customer.
This is probably true. But the subsequent actions of VISA/MC without proper subpoenas or injunctions may place them afoul of laws governing their fiduciary relationship.
Have gnu, will travel.
I'm pretty sure they allow that in any jurisdiction where it's legal. I don't think they have to be subject to US laws just because they're a US company (no idea where Visa is established). They don't need to comply with *every* law in the world at the same time - Visa processes payments for porn every day, but they also operate in countries where porn is illegal.
OK, porn is not a good example. How about Foie Gras? In many countries it's illegal, because of the unnecessary suffering the geese are put through. I'm pretty sure you can buy all the foie gras you can eat in France with your Visa card. And myself, I think they're greedy shits for allowing that to happen. Same with AMEX. You can't buy porn with AMEX but you certainly can buy foie gras, live sushi, or baby seal coats. I'm not a PETA fanboy - I like meat. I just don't like some methods of production: it IS NOT all black, or all white. Slashdotters need to get in their heads that law is complicated because you can't treat every company the same. Same reason you can't just go and buy a gun - there is a waiting period. An asperger-syndrome slashdotter can't see "why" because under his logic a gun shop is the same as any other shop: i give you money, you give me goods. But there are reasons why the waiting period is in place. And there are reasons why financial entities are not subject to the same laws and requirements as the rest of business. Hell, even Walmart isn't subject to the same laws your corner store is: size is also a factor, even if they sell the same stuff.
I know this for a fact, I was involved.
You can compare it to making a gambling website. But instead of using MCC code Betting/Casino Gambling, you tell your acquirer to use "Eating Places, Restaurants" (see http://www.irs.gov/irb/2004-31_IRB/ar17.html). That means that countries which have made gambling illegal, you can still use your card on this site.
This is not a fuckup by the acquirer. It's simply impossible to ensure that every customer are giving you the correct MCC code, if you're not visiting every potential customer physically.
So, datacell breached the agreement they had with the acquirer.
Credit card companies are by no means a monopoly or a duopoly. There are four major companies in the US alone, and several more in Europe. It's not a big market just because it's got a high barrier to entry, but it's by no means impenetrable.
Any examples -- examples that are widespread enough to be useful, in particular?
(+1, Disagree)
those transactions? That's money down the drain. Visa/MC were afraid of the US government. They're blaming the victim, not the culprit.
How the heck is this mod'd down? It's informative about the case.
Actually, in my state(New Hampshire), there is no waiting period. You can just walk in and get a gun, if you're a resident. So, I guess it is like any other shop.
They've made a spoof video of the mastercard ads,
http://www.youtube.com/watch?v=G7kFC6KSNVc
Freedom my fat ass. Indeed, the terrorist shouldn't hate us for our freedoms anymore.
Does anyone else find it hard to believe that our Constitution matters one fucking iota anymore? Wikileaks is just what our Constitution was written for. Freedom of the press and freedom of speech. The fact that Wikileads isn't based in NY should be our first major embarrassment. Isn't it sad that a whistle blower outfit like Wikileaks has to try to HIDE FROM THE US's long arm in European countries? Isn't it just a howling joke that in order for them to be free, they need to operate where corporations haven't been able to crush them with their puppet governments?
Now we get to watch the British Government show just how puppet they are too. Britain has become so Orwellian it's creeping me out. I couldn't live there, I would have to make a hobby out of destroying every CC camera I seen. The logistics are impossible for such a task for one person, so I would either go mad....or....I would organize resistance, and make a movement out of it to take them all out. It would need a theme, Guy Fawkes would be perfect for it, run around in those masks taking out CC cameras. It could be stylish! Recruit hot women, first order of business for any movement. Image is everything. Revolution is chick this season, no?
No? Ok, I will just change my sig for now.
Take the Red Pill.
You underestimate the power of the -1 "I disagree with your position" mod.
Visa and Mastercard are payment processors, it's not their place to decide where one can and can't buy things
I'll bet somebody a two ounce of silver donation to Wikileaks that if this is adjudicated we'll see that Visa/Mastercard were directed by the government to block transfers to Wikileaks.
It's not by accident that sufficient regulatory hurdles exist to starting a payment processing company that there are only a few which can be easily controlled. Government-regulated "free" markets are first and foremost designed to work well for those governments. 2nd Amendment supporters understand why this is true for personal freedoms, but even some of them support infringement of economic liberties.
Perhaps this is the point of the lawsuit - to expose the blacklisting in court.
My God, it's Full of Source!
OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
But Wikileaks is breaking US Law by knowingly publishing Classified Documents.
No matter how you feel about WikiLeaks, it is not illegal to publish classified documents in the U.S. There is no "state secrets" law like some other nations have. While there are laws that can punish the person who is entrusted with a classification and uses that to leak information, there are none about publishing it. This was affirmed by the Supreme Court after the publication of the Pentagon Papers. Newspapers publish classified information all the time.
You may disagree with those laws, but they exist and have full legal standing.
Not sure why you felt the need to add this rather than providing some evidence, but again, it's not true.
I know this for a fact, I was involved. You can compare it to making a gambling website. But instead of using MCC code
So, what MCC code did Datacell provide to their acquirer? And which code should they have used?
My ISP provides payment services for its hosted sites. As far as I can tell, its still an ISP and reports itself as such. Unlike Datacell (maybe?) it actually hosts numerous sites and, other than TOS prohibiting "illegal" activities, they don't care what I provide or charge for. So they would be at a loss to provide anyone with an MCC (or any other description) of the specific services they hosted. Their operation falls under the general purpose "ISP" description. If someone were to claim that I was doing something illegal and in violation of their TOS, they'd demand a court injunction before pulling my plug.
And what's the MCC for "leaking secret information"?
Have gnu, will travel.
On the one hand, I think Visa should have every right to deny service and access to their private network. It's their network. You shouldn't have any more rights to access it than you have rights to access my own home network. On the hand, I think it's absurd that we are going after someone who is clearly engaged in a journalist effort simply because we don't like how much information he was able to obtain. All attempts to label him anything but a journalist are disingenuous. The only reasonable solution I can come with would not be on his side. He should come to the US and sue here. Of course, he'd be forced to stand trial. As well he should. And we would all benefit from his victory in court. The principle that a journalist has a right to publish anything he knows apparently needs to be reaffirmed in the current day and age.
Any guest worker system is indistinguishable from indentured servitude.
It's not informative, it's speculative. It might be insightful, but there's no guarantee that insight is right.
It seems convenient, maybe even likely, that someone in the government told Visa and Mastercard to cut off Wikileaks. But there's no evidence of that.
You know, evidence. The sort of thing that people want against Assange. One of those legal things we like to have in the States, from time to time.
If you have a wad of data that should be generally released for the public good, Wikileaks will host it, thus datahosting. Recognizing that many who have such data are short on cash, the public is invited to pay for the hosting service on a donation basis. As the datahosting really is in the public interest, many choose to do just that.
The USA has managed to stop payment processors from handling payments to gaming and poker sites. If they can do this then they can stop donations to Wikileaks and make it stick.
"It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
Unfortunately, this is also business as usual for them. They have been down that path and they know how to handle this. Wikileaks is going to be in court for decades. Look at what Microsoft did with the DOJ: Guity! Condemned! and... nothing. Try installing google as a search engine in IE8 or IE9 for Windows 7 now. Good luck. You need a registry hack to do it.
The only thing that could work is a class action against the credit cards by their customers. I don't see that happening.
Hmm, big claims require big proof, anonymous coward. In the complaint DataCell has filed they say their merchant agreement explicitly mentioned Sunshine Press, and that they also provided hosting and software development services.
They also say Teller (the acquirer) claims there was no violation of VISA/MC rules, and that they audited DataCell and found them to be in 100% compliance.
But anyway, not that any of this matters. As you point out, the actual cause of this is certainly that "somebody" in the US Government had a quick word with these companies. That's completely unacceptable behavior and I hope VISA/MC get slapped for it.
You provide no evidence whatsoever for your number. And indeed from the EU bank law and the charter on bank institution to NOT be allowed to discreminate agaisnt customer, I rather see it as : 40% chance they try to draw it out to dry wikileak of money but finally giving up when they get their charter smeared on their face in european court, and 60% chance they just give up quickly knowing they will be bitchslapped in court for breaking their charter. See the problem is that breaking law make it a law case, as opposed to a civil case. If wikileak isn't dumb they jsut bring them ebfore the EU court of law and VISA/mastercard are fucked.
Your facts are wrong. Datacell is a company which runs a datacenter in Iceland -- you falsely claim that their only business is collecting donations for Wikileaks. Just because they are a small datacenter operator, and the WikiLeaks donations were the majority of their transactions, does not mean that their core business is not what they say it is. Datacell was incorporated in Iceland in July 2009, and their ÍSAT code is 63.11.0 - "Gagnavinnsla, hýsing og tengd starfsemi", which translates as "Data processing, hosting and related operations".
In fact the story of Datacell is a curious one, as the owners of the company founded a company in Iceland in 2007 named IceCell, and intended to enter the Wireless Carrier market in Iceland. However before they launched the Icelandic economic crash came, in the fall of 2008, and apparently they switched focus over to datacenters it seems.
I am Icelandic and was involved with getting Julian and Daniel (who has now left WikiLeaks) here in 2009, and I'm in the IT business and know of the Datacell guys, they are no shell-company for WikiLeaks donations, and this explanation about breach of terms is just an empty justification for the purely political action taken by these commercial companies against a veritable freedom fighting organization.
Next time, get your facts straight before starting a post with "The fact here is:".
There is something more going on here though. At one point some one tried to donate to wiki rake using my credit card details. I canceled the card. Donations are my choice, not some random credit card thirds choice. So I hazard a guess that the blockade may not be entirely ideological.
Instead of trying to strong arm CC companies into not accepting the payments, why not just have those same companies report US citizens making donations to the US government to be placed on the no-fly list for "providing material support to terrorists"? Wouldn't that be far easier?
The fact here is: Someone in the US Government told Visa and Mastercard to get rid of this customer.
Hows does anything you said prove (ie. "fact" infers you have proof) that the government told them to block Wikileaks? You actually said it was Wikileaks' fault.
Good for them, we should not allow a financial org like visa to tell us what type of business we should have, if they make money from our money, then they should still provide the services they advertise...and the fact they renegged on it, tells me they should lose.