ICC-Cal CEO: I have instructed that all activities in the field of nutritional additives be closed.
Visa International has fined Israel Discount Bank (TASE:DSCT) subsidiary Israel Credit Cards-Cal Ltd. (ICC-Cal) (Visa) $3.5 million. The fine is for irregularities in supervising risks for the clearing of online transactions for nutritional supplements. ICC-Cal CEO Boaz Chechik was notified of the fine at a meeting in Visa International's offices in London several weeks ago. Chechik confirmed the report.
Cal International, a subsidiary of ICC-Cal, which is involved in clearing services for online legal gambling and pornography, recently began activities in the nutritional supplements sector. The clearing market sees nutritional supplements as a risky sector because of the relatively high percentage of cancelled deals, and because it is considered popular camouflage for businesses marketing illegal pharmaceuticals over the Internet.
Chechik said that his company has good securities from the businesses involved, and that Visa's complaint was over the relatively high number of transactions - 2% - that have been cancelled. He said, "Entering the market was a mistake. The business has generated major discomfort and as a result we have taken some immediate actions. I have instructed that all activities in the field of nutritional additives be closed down and cancelled agreements with dozens of businesses. Visa International's fines will be passed onto the businesses. We have left this field."
Published by Globes [online], Israel business news - www.globes-online.com - on September 22, 2009
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