10 Jan 2011 - Payment Processors: How to Succeed in the HYIP Industry

Why do you need more than 1 payment processor to succeed in the HYIP industry?

One might argue that the secret of success is being able to go through and through with the one that you believe, be it in terms of an idea or a payment processor in this case. While that has absolutely nothing wrong, I would like to offer a different, but not opposite, view of how to succeed in the industry.

First of all, there are about 5 commonly used payment processors in the industry, namely (not in order) LibertyReserve(LR), AlertPay(AP) *Now known as Payza, PerfectMoney(PM), SolidTrustPay(STP) and GlobalDigitalPay(GDP). Of course, there are numerous alternatives as well, such as RoutePay and PexPay, but those are not as commonly used in the industry. PexPay is a relatively new player in the industry claimed to be registered in the US, but I have my reservations. Until they prove themselves, I will hesitate to send my verification documents to them.

LibertyReserve has been a favorite amongst investors and program admins alike for 2 reasons:

1) it is easy to acquire funds
2) all transactions are final.

For investors, the ease of acquiring, exchanging and selling funds remains one of the top reasons why they choose LibertyReserve. One can easily look for an exchanger or LibertyReserve certified reseller to purchase funds. A list of certified resellers and exchangers can be found here: (LibertyResreve site link) LibertyReserve funds can also be easily exchanged to other e-currencies, such as AlertPay and SolidTrustPay. (read … to find out how to exchange)

Admins, on the other hand, love LibertyReserve because once the funds are in their accounts, there’s no way anyone can force it back. The deal’s closed once the money’s transferred.

As such, that’s why most, if not all, HYIP programs offer LibertyReserve as a means of investment simply because it is easy for investors to get started, and it is similarly easy for admins to get away (in the event that they want to pack their bags).

Is it important, then, to have LibertyReserve? I believe that question is self-explanatory.
However, if you want to succeed in the industry, is having only LibertyReserve going to help?

The answer: no. Because the risk involved here is simply too huge. Admins can always shut down their programs and walk away with their fat wallets. What can an investor do in such a case?

Remember: all deals done with LibertyReserve are done deals. There are no chargebacks. Therefore, the saying that runs around the industry has quite a degree of truth in it: “once you invest, consider that you’ve already lost that money.”

However, that’s not the case if you have AlertPay. AlertPay is one of the few payment processors in the industry that offers chargebacks and identity verification. Therefore, if any program uses an Unverified account, it’s clear that the admin’s in the game for a quick profit. A clear sign to R.U.N!

As almost anything can be bought with money, so does identity. Admins often purchase fake identities to verify their accounts, and therefore, please do not fall easily if you see a Verified Account as that does not represent anything, if anything at all.

Nevertheless, in the event that a program scams, there’s a 50/50 chance that you could recover your profits. This is the beauty of using AlertPay: they have a team of experts specialized in scam prevention. You would have to file a dispute claim should you find that you have been scammed. Then, this bunch of “scam experts” would initiate an investigation into your claim. Should they find the investigation in your favor, they would reverse whatever funds they can recoup into your account. Note that it is unlikely that they will reverse the full amount of your investment, but it’s always better to have something than not to have anything at all.

Therefore, I think we can safely conclude that having a few payment processors not only reduces your risks in this industry, it also increases your chances of recuperating your funds in the event a program scams. In the case of having a LibertyReserve account, that helps you to invest in some programs that have not yet introduced AlertPay into their range of accepted e-currencies. Nonetheless, most programs usually do somewhere down the road when they're more successful. If you wish to wait it out, that would be a good idea as well.

That's all for today folks! Leave your comments and suggestions on either the suggestion box below or the ChatBox on the right hand side of this blog :)

Thanks for reading and see you tomorrow!