Potential Wizard bankruptcy???

[revat]

Hold on, let me ring up some of my IRS posters on the boards for input on this one.

 

 

This hypothetical laundering is not for the purpose of avoiding taxes, but rather the 'legitimizing' of cash from criminal proceeds.

 

Please note that I'm not suggesting that anyone is or should engage in this type of behavior. Please do commit crimes.

[the blob]

I really doubt people are going through the hassle of selling it cons to launder money and tell the IRS they had $300K in sales at NYCC. Certainly not Katz comics, have you ever met the guy!? (I know, you're just throwing it out there)

 

With that said, I suspect one pro of doing cons vs. online sales is what bob is referring to.

[Sqeggs]

I feel bad for the small local people who have a couple of tables at NYCC (which is nowadays the only show i go to because i get passes from a buddy) who bring a bunch of ho-hum stuff and then try to charge full imaginary retail for it. i can see them finishing up a saturday with $127 in sales.

 

On the other hand, katz comics takes up a big space at NYCC selling 90% dollar books, virtually no bonafide wall books, has 4 or 5 people working the tables, and when i spoke to him he said that business model was working for him. i have a tough time comprehending how many dollar books he needs to sell to pay for that space. he gets me for $50-$100 at every show, but you need like 100 of me for that to work.

 

I'm not accusing this specific seller of doing this (or any other seller), BUT this seems like a pretty good way to launder money. Nobody can possibly track how much cash is coming in at a con when you have tons of customers, all cash sales, many workers, etc. Especially if you're the owner and the one doing the books, would the IRS or any government agency really be able to question it? Would they really question an extra $100-$300K of cash deposits after a comic book show in NYC? Especially if they had similarly big (though maybe not quite so big) deposits after other comic shows?

 

My understanding is that businesses that routinely deal in large amounts of cash can be exempt from the usual requirement of reporting cash transactions of more than $10,000 to the IRS. But banks are under an obligation to make a reasonable effort to report suspicious activity. I doubt this scheme would pass muster with any U.S. bank these days because the seller would need to provide documentation to the bank that the cash being deposited resulted from legitimate sales.

[revat]

I feel bad for the small local people who have a couple of tables at NYCC (which is nowadays the only show i go to because i get passes from a buddy) who bring a bunch of ho-hum stuff and then try to charge full imaginary retail for it. i can see them finishing up a saturday with $127 in sales.

 

On the other hand, katz comics takes up a big space at NYCC selling 90% dollar books, virtually no bonafide wall books, has 4 or 5 people working the tables, and when i spoke to him he said that business model was working for him. i have a tough time comprehending how many dollar books he needs to sell to pay for that space. he gets me for $50-$100 at every show, but you need like 100 of me for that to work.

 

I'm not accusing this specific seller of doing this (or any other seller), BUT this seems like a pretty good way to launder money. Nobody can possibly track how much cash is coming in at a con when you have tons of customers, all cash sales, many workers, etc. Especially if you're the owner and the one doing the books, would the IRS or any government agency really be able to question it? Would they really question an extra $100-$300K of cash deposits after a comic book show in NYC? Especially if they had similarly big (though maybe not quite so big) deposits after other comic shows?

 

My understanding is that businesses that routinely deal in large amounts of cash can be exempt from the usual requirement of reporting cash transactions of more than $10,000 to the IRS. But banks are under an obligation to make a reasonable effort to report suspicious activity. I doubt this scheme would pass muster with any U.S. bank these days because the seller would need to provide documentation to the bank that the cash being deposited resulted from legitimate sales.

 

Again, no one should do this.... but:

 

Lets say you're a drug dealer, and your good buddy is a comic dealer, who deals in volume. Twice a year you'd love legitimize about $200K in cash. The comic dealer sets up at NYCC and Heroes, and sells zillions of dollar books and other books with staff of 5+ people, most sales happen in cash. Both comic and drug dealer have a small warehouse full of comics. After each show, the cash is deposited into the comic dealer, who then cuts a check less 10-20% to 'buy' comics from the drug dealer. The comic dealer has a full legit business set up with storefront, website, business license, staff, etc and just goes to shows a few times a year. They both have small warehouses full of comics at any given time that they can take pictures of and submit to any agency. The drug dealer says he had these comics from the time he's a kid or from his grandpa or whatever, and he 'sells' them a few boxes at a time each year to his comic selling friend. Everyone still reports all this income, pays their taxes, etc.

 

Yes this doesn't hold up if the drug dealer gets caught red handed selling drugs, but I don't think the IRS or FBI will go out of their way to look into this just from a cash perspective.

 

If at some point the IRS comes to ask the comic dealer, he shows them a warehouse full of comics, his store front, some pics from a PACKED NYCC, pics of their booth, etc., it'd be nearly impossible for them to make a case beyond a reasonable doubt, or to even get it charged. You're not giving out receipts for dollar books bought with cash at a convention.

[MetalPSI]

I feel bad for the small local people who have a couple of tables at NYCC (which is nowadays the only show i go to because i get passes from a buddy) who bring a bunch of ho-hum stuff and then try to charge full imaginary retail for it. i can see them finishing up a saturday with $127 in sales.

 

On the other hand, katz comics takes up a big space at NYCC selling 90% dollar books, virtually no bonafide wall books, has 4 or 5 people working the tables, and when i spoke to him he said that business model was working for him. i have a tough time comprehending how many dollar books he needs to sell to pay for that space. he gets me for $50-$100 at every show, but you need like 100 of me for that to work.

 

I'm not accusing this specific seller of doing this (or any other seller), BUT this seems like a pretty good way to launder money. Nobody can possibly track how much cash is coming in at a con when you have tons of customers, all cash sales, many workers, etc. Especially if you're the owner and the one doing the books, would the IRS or any government agency really be able to question it? Would they really question an extra $100-$300K of cash deposits after a comic book show in NYC? Especially if they had similarly big (though maybe not quite so big) deposits after other comic shows?

 

My understanding is that businesses that routinely deal in large amounts of cash can be exempt from the usual requirement of reporting cash transactions of more than $10,000 to the IRS. But banks are under an obligation to make a reasonable effort to report suspicious activity. I doubt this scheme would pass muster with any U.S. bank these days because the seller would need to provide documentation to the bank that the cash being deposited resulted from legitimate sales.

 

Again, no one should do this.... but:

 

Lets say you're a drug dealer, and your good buddy is a comic dealer, who deals in volume. Twice a year you'd love legitimize about $200K in cash. The comic dealer sets up at NYCC and Heroes, and sells zillions of dollar books and other books with staff of 5+ people, most sales happen in cash. Both comic and drug dealer have a small warehouse full of comics. After each show, the cash is deposited into the comic dealer, who then cuts a check less 10-20% to 'buy' comics from the drug dealer. The comic dealer has a full legit business set up with storefront, website, business license, staff, etc and just goes to shows a few times a year. They both have small warehouses full of comics at any given time that they can take pictures of and submit to any agency. The drug dealer says he had these comics from the time he's a kid or from his grandpa or whatever, and he 'sells' them a few boxes at a time each year to his comic selling friend. Everyone still reports all this income, pays their taxes, etc.

 

Yes this doesn't hold up if the drug dealer gets caught red handed selling drugs, but I don't think the IRS or FBI will go out of their way to look into this just from a cash perspective.

 

If at some point the IRS comes to ask the comic dealer, he shows them a warehouse full of comics, his store front, some pics from a PACKED NYCC, pics of their booth, etc., it'd be nearly impossible for them to make a case beyond a reasonable doubt, or to even get it charged. You're not giving out receipts for dollar books bought with cash at a convention.

 

I've got a business proposition for you .....

[revat]

I feel bad for the small local people who have a couple of tables at NYCC (which is nowadays the only show i go to because i get passes from a buddy) who bring a bunch of ho-hum stuff and then try to charge full imaginary retail for it. i can see them finishing up a saturday with $127 in sales.

 

On the other hand, katz comics takes up a big space at NYCC selling 90% dollar books, virtually no bonafide wall books, has 4 or 5 people working the tables, and when i spoke to him he said that business model was working for him. i have a tough time comprehending how many dollar books he needs to sell to pay for that space. he gets me for $50-$100 at every show, but you need like 100 of me for that to work.

 

I'm not accusing this specific seller of doing this (or any other seller), BUT this seems like a pretty good way to launder money. Nobody can possibly track how much cash is coming in at a con when you have tons of customers, all cash sales, many workers, etc. Especially if you're the owner and the one doing the books, would the IRS or any government agency really be able to question it? Would they really question an extra $100-$300K of cash deposits after a comic book show in NYC? Especially if they had similarly big (though maybe not quite so big) deposits after other comic shows?

 

My understanding is that businesses that routinely deal in large amounts of cash can be exempt from the usual requirement of reporting cash transactions of more than $10,000 to the IRS. But banks are under an obligation to make a reasonable effort to report suspicious activity. I doubt this scheme would pass muster with any U.S. bank these days because the seller would need to provide documentation to the bank that the cash being deposited resulted from legitimate sales.

 

Again, no one should do this.... but:

 

Lets say you're a drug dealer, and your good buddy is a comic dealer, who deals in volume. Twice a year you'd love legitimize about $200K in cash. The comic dealer sets up at NYCC and Heroes, and sells zillions of dollar books and other books with staff of 5+ people, most sales happen in cash. Both comic and drug dealer have a small warehouse full of comics. After each show, the cash is deposited into the comic dealer, who then cuts a check less 10-20% to 'buy' comics from the drug dealer. The comic dealer has a full legit business set up with storefront, website, business license, staff, etc and just goes to shows a few times a year. They both have small warehouses full of comics at any given time that they can take pictures of and submit to any agency. The drug dealer says he had these comics from the time he's a kid or from his grandpa or whatever, and he 'sells' them a few boxes at a time each year to his comic selling friend. Everyone still reports all this income, pays their taxes, etc.

 

Yes this doesn't hold up if the drug dealer gets caught red handed selling drugs, but I don't think the IRS or FBI will go out of their way to look into this just from a cash perspective.

 

If at some point the IRS comes to ask the comic dealer, he shows them a warehouse full of comics, his store front, some pics from a PACKED NYCC, pics of their booth, etc., it'd be nearly impossible for them to make a case beyond a reasonable doubt, or to even get it charged. You're not giving out receipts for dollar books bought with cash at a convention.

 

I've got a business proposition for you .....

 

note, my ideas on the topic are derived by watching 'the wire', where they ostensibly laundered the money through the 'gentleman's club' they owned. Of course cash in the strip club is also very hard to count, but having a storefront seems to be A) a ton of trouble to manage, and B) a target for other people in the criminal element and C) involves more potential government authorities who could investigate you.

 

On the other hand, I get why you don't want to be doing business at your house too, and its nice to have a business where you can have strapped guards (unlike say a barber shop). But ACTUALLY, maybe you could still own the club, but just not launder any money through there, so you can still do your business there, be protected, but it would throw off authorities. "If he was a dealer, he'd def be doing laundering through the club, but he's not, so I guess he's not dealing"

[MetalPSI]

I feel bad for the small local people who have a couple of tables at NYCC (which is nowadays the only show i go to because i get passes from a buddy) who bring a bunch of ho-hum stuff and then try to charge full imaginary retail for it. i can see them finishing up a saturday with $127 in sales.

 

On the other hand, katz comics takes up a big space at NYCC selling 90% dollar books, virtually no bonafide wall books, has 4 or 5 people working the tables, and when i spoke to him he said that business model was working for him. i have a tough time comprehending how many dollar books he needs to sell to pay for that space. he gets me for $50-$100 at every show, but you need like 100 of me for that to work.

 

I'm not accusing this specific seller of doing this (or any other seller), BUT this seems like a pretty good way to launder money. Nobody can possibly track how much cash is coming in at a con when you have tons of customers, all cash sales, many workers, etc. Especially if you're the owner and the one doing the books, would the IRS or any government agency really be able to question it? Would they really question an extra $100-$300K of cash deposits after a comic book show in NYC? Especially if they had similarly big (though maybe not quite so big) deposits after other comic shows?

 

My understanding is that businesses that routinely deal in large amounts of cash can be exempt from the usual requirement of reporting cash transactions of more than $10,000 to the IRS. But banks are under an obligation to make a reasonable effort to report suspicious activity. I doubt this scheme would pass muster with any U.S. bank these days because the seller would need to provide documentation to the bank that the cash being deposited resulted from legitimate sales.

 

Again, no one should do this.... but:

 

Lets say you're a drug dealer, and your good buddy is a comic dealer, who deals in volume. Twice a year you'd love legitimize about $200K in cash. The comic dealer sets up at NYCC and Heroes, and sells zillions of dollar books and other books with staff of 5+ people, most sales happen in cash. Both comic and drug dealer have a small warehouse full of comics. After each show, the cash is deposited into the comic dealer, who then cuts a check less 10-20% to 'buy' comics from the drug dealer. The comic dealer has a full legit business set up with storefront, website, business license, staff, etc and just goes to shows a few times a year. They both have small warehouses full of comics at any given time that they can take pictures of and submit to any agency. The drug dealer says he had these comics from the time he's a kid or from his grandpa or whatever, and he 'sells' them a few boxes at a time each year to his comic selling friend. Everyone still reports all this income, pays their taxes, etc.

 

Yes this doesn't hold up if the drug dealer gets caught red handed selling drugs, but I don't think the IRS or FBI will go out of their way to look into this just from a cash perspective.

 

If at some point the IRS comes to ask the comic dealer, he shows them a warehouse full of comics, his store front, some pics from a PACKED NYCC, pics of their booth, etc., it'd be nearly impossible for them to make a case beyond a reasonable doubt, or to even get it charged. You're not giving out receipts for dollar books bought with cash at a convention.

 

I've got a business proposition for you .....

 

note, my ideas on the topic are derived by watching 'the wire', where they ostensibly laundered the money through the 'gentleman's club' they owned. Of course cash in the strip club is also very hard to count, but having a storefront seems to be A) a ton of trouble to manage, and B) a target for other people in the criminal element and C) involves more potential government authorities who could investigate you.

 

On the other hand, I get why you don't want to be doing business at your house too, and its nice to have a business where you can have strapped guards (unlike say a barber shop). But ACTUALLY, maybe you could still own the club, but just not launder any money through there, so you can still do your business there, be protected, but it would throw off authorities. "If he was a dealer, he'd def be doing laundering through the club, but he's not, so I guess he's not dealing"

 

Good show

[Mapleleafvann]

Any cash based business can easily engage in this kind of behavior.....but given the sheer volumes of money from the proceeds of crime that need to laundered, it's too tedious for such a small amount realized----this is where the banks come in ala HSBC. ---hence their billion dollar settlement while simultaneously not admitting any wrong-doing and no one going to jail.

 

Great work if you can get it.....

[Dale Roberts]

I feel bad for the small local people who have a couple of tables at NYCC (which is nowadays the only show i go to because i get passes from a buddy) who bring a bunch of ho-hum stuff and then try to charge full imaginary retail for it. i can see them finishing up a saturday with $127 in sales.

 

On the other hand, katz comics takes up a big space at NYCC selling 90% dollar books, virtually no bonafide wall books, has 4 or 5 people working the tables, and when i spoke to him he said that business model was working for him. i have a tough time comprehending how many dollar books he needs to sell to pay for that space. he gets me for $50-$100 at every show, but you need like 100 of me for that to work.

 

I'm not accusing this specific seller of doing this (or any other seller), BUT this seems like a pretty good way to launder money. Nobody can possibly track how much cash is coming in at a con when you have tons of customers, all cash sales, many workers, etc. Especially if you're the owner and the one doing the books, would the IRS or any government agency really be able to question it? Would they really question an extra $100-$300K of cash deposits after a comic book show in NYC? Especially if they had similarly big (though maybe not quite so big) deposits after other comic shows?

 

My understanding is that businesses that routinely deal in large amounts of cash can be exempt from the usual requirement of reporting cash transactions of more than $10,000 to the IRS. But banks are under an obligation to make a reasonable effort to report suspicious activity. I doubt this scheme would pass muster with any U.S. bank these days because the seller would need to provide documentation to the bank that the cash being deposited resulted from legitimate sales.

 

Again, no one should do this.... but:

 

Lets say you're a drug dealer, and your good buddy is a comic dealer, who deals in volume. Twice a year you'd love legitimize about $200K in cash. The comic dealer sets up at NYCC and Heroes, and sells zillions of dollar books and other books with staff of 5+ people, most sales happen in cash. Both comic and drug dealer have a small warehouse full of comics. After each show, the cash is deposited into the comic dealer, who then cuts a check less 10-20% to 'buy' comics from the drug dealer. The comic dealer has a full legit business set up with storefront, website, business license, staff, etc and just goes to shows a few times a year. They both have small warehouses full of comics at any given time that they can take pictures of and submit to any agency. The drug dealer says he had these comics from the time he's a kid or from his grandpa or whatever, and he 'sells' them a few boxes at a time each year to his comic selling friend. Everyone still reports all this income, pays their taxes, etc.

 

Yes this doesn't hold up if the drug dealer gets caught red handed selling drugs, but I don't think the IRS or FBI will go out of their way to look into this just from a cash perspective.

 

If at some point the IRS comes to ask the comic dealer, he shows them a warehouse full of comics, his store front, some pics from a PACKED NYCC, pics of their booth, etc., it'd be nearly impossible for them to make a case beyond a reasonable doubt, or to even get it charged. You're not giving out receipts for dollar books bought with cash at a convention.

 

 

The hole in your theory is that its simply not that easy to twice a year sell 200K worth of comics. No one does that anywhere, unless you are selling huge books. You don't do that with warehouse books, or anything else other than some huge megakeys.

[MetalPSI]

Yeah but you can just take the $1 books and shred them after making a receipt. As long as you can prove those books have moved out of stock, doesn't matter how many you put down to selling. Imaginary customers are easy, especially if you aren't required to keep track.

 

Breaking Bad is a good example with Skylar working the till

[revat]

I feel bad for the small local people who have a couple of tables at NYCC (which is nowadays the only show i go to because i get passes from a buddy) who bring a bunch of ho-hum stuff and then try to charge full imaginary retail for it. i can see them finishing up a saturday with $127 in sales.

 

On the other hand, katz comics takes up a big space at NYCC selling 90% dollar books, virtually no bonafide wall books, has 4 or 5 people working the tables, and when i spoke to him he said that business model was working for him. i have a tough time comprehending how many dollar books he needs to sell to pay for that space. he gets me for $50-$100 at every show, but you need like 100 of me for that to work.

 

I'm not accusing this specific seller of doing this (or any other seller), BUT this seems like a pretty good way to launder money. Nobody can possibly track how much cash is coming in at a con when you have tons of customers, all cash sales, many workers, etc. Especially if you're the owner and the one doing the books, would the IRS or any government agency really be able to question it? Would they really question an extra $100-$300K of cash deposits after a comic book show in NYC? Especially if they had similarly big (though maybe not quite so big) deposits after other comic shows?

 

My understanding is that businesses that routinely deal in large amounts of cash can be exempt from the usual requirement of reporting cash transactions of more than $10,000 to the IRS. But banks are under an obligation to make a reasonable effort to report suspicious activity. I doubt this scheme would pass muster with any U.S. bank these days because the seller would need to provide documentation to the bank that the cash being deposited resulted from legitimate sales.

 

Again, no one should do this.... but:

 

Lets say you're a drug dealer, and your good buddy is a comic dealer, who deals in volume. Twice a year you'd love legitimize about $200K in cash. The comic dealer sets up at NYCC and Heroes, and sells zillions of dollar books and other books with staff of 5+ people, most sales happen in cash. Both comic and drug dealer have a small warehouse full of comics. After each show, the cash is deposited into the comic dealer, who then cuts a check less 10-20% to 'buy' comics from the drug dealer. The comic dealer has a full legit business set up with storefront, website, business license, staff, etc and just goes to shows a few times a year. They both have small warehouses full of comics at any given time that they can take pictures of and submit to any agency. The drug dealer says he had these comics from the time he's a kid or from his grandpa or whatever, and he 'sells' them a few boxes at a time each year to his comic selling friend. Everyone still reports all this income, pays their taxes, etc.

 

Yes this doesn't hold up if the drug dealer gets caught red handed selling drugs, but I don't think the IRS or FBI will go out of their way to look into this just from a cash perspective.

 

If at some point the IRS comes to ask the comic dealer, he shows them a warehouse full of comics, his store front, some pics from a PACKED NYCC, pics of their booth, etc., it'd be nearly impossible for them to make a case beyond a reasonable doubt, or to even get it charged. You're not giving out receipts for dollar books bought with cash at a convention.

 

 

The hole in your theory is that its simply not that easy to twice a year sell 200K worth of comics. No one does that anywhere, unless you are selling huge books. You don't do that with warehouse books, or anything else other than some huge megakeys.

 

I have no doubt that you're correct. What I would doubt is that any agency would care enough about it to look into it, especially since all parties are reporting plenty of income and paying taxes on them. Also one could 'claim' they've sold big books from their childhood, etc, and just take some pictures of expensive books and submit them as evidence. The IRS would be happy if they didn't claim those books as expenses because they get more tax money.

 

But I agree, a better part of the plan would be to have a fairly successful business buying and selling 'big' books too.

[the blob]

The hole in your theory is that its simply not that easy to twice a year sell 200K worth of comics. No one does that anywhere, unless you are selling huge books. You don't do that with warehouse books, or anything else other than some huge megakeys.

 

-----------

 

Blazing Bob does that kind of business on a Sunday before he's finished his 6th cup of coffee.

[Sqeggs]

This turn in the thread started with the observation that a small-time seller at NYCC didn't seem to be doing sufficient business to cover the booth fees. For that kind of seller to get a bank to accept hundreds of thousands of dollars in cash deposits would require a fairly elaborate deception.

 

Rather than run the risk of being in hot war for overlooking patently suspicious activity, the bank would likely make inquiries that it would be difficult for the scheme to survive. In any case, banks are not particularly anxious to attract deposits these days and are not likely to want to deal with a business client whose only relationship with them is to make periodic large cash deposits.

 

An established dealer who had an ongoing relationship with a bank and was making frequent large cash deposits might have a better shot at mingling drug money (or whatever) in with his legitimate receipts. But, of course, he would be putting his business at risk -- not to mention the risk of jail time -- if the scheme were exposed.

[the blob]

No, I didn't say he wasn't doing sufficient business. He has a big set up and sells a ton of dollar books (mostly.. he has some more expensive stuff, but not much). But he needs to sell like 30 longs at $1 a book for it to start to work, which I guess he must do because he is there every year, so I guess that's what he does. His acquisition costs must be zip. I can't wrap my mind around how many stacks of 60 or 70 books he must sell to fat dorks like me to make money because he ain't doing it making $5 sales to 17 year olds.

[Hamlet]

No, I didn't say he wasn't doing sufficient business. He has a big set up and sells a ton of dollar books (mostly.. he has some more expensive stuff, but not much). But he needs to sell like 30 longs at $1 a book for it to start to work, which I guess he must do because he is there every year, so I guess that's what he does. His acquisition costs must be zip. I can't wrap my mind around how many stacks of 60 or 70 books he must sell to fat dorks like me to make money because he ain't doing it making $5 sales to 17 year olds.

 

He probably considers his acquisition costs zero for these types of books. I have to think anyone who buys collections frequently ends up with a massive amount of dollar books that they just need to get rid of somehow.

 

They bought the collection for the 100 or so books worth individually pricing. They sold them and made what they needed to get out of the collection, but are left with 900 dollar books. The best way to sell books like those is a convention. They are too cheap to pay for shipping unless you are a big player, and they have almost no wholesale value.

 

So you take them to a convention, blow them out, and as long as you clear enough above table cost to make it worth your time you consider it a win.

[mysterio]

Posts on the Rate that Comic Con FaceBook page show emails from Wizard World that they're no longer accepting credit cards for payment for booths at shows. Seems like another indication that things may be a bit shaky. Much tougher to dispute a check/MO payment than a cc.

[mattn792]

Avoids the CC companies taking their percentage as well.

[1Cool]

Avoids the CC companies taking their percentage as well.

 

Trying to trim 3% in fees by inconveniencing booth buyers sounds pretty desperate to me.

[Dale Roberts]

Avoids the CC companies taking their percentage as well.

 

Trying to trim 3% in fees by inconveniencing booth buyers sounds pretty desperate to me.

 

I would imagine they had an issue with a charge back or two. Personally, I like it better. Honestly, how hard is it to put a check in an envelope and drop it in the mail.

[mattn792]

Avoids the CC companies taking their percentage as well.

 

Trying to trim 3% in fees by inconveniencing booth buyers sounds pretty desperate to me.

 

I would imagine they had an issue with a charge back or two. Personally, I like it better. Honestly, how hard is it to put a check in an envelope and drop it in the mail.

 

Personally I use my CC for everything that doesn't come with a cash discount because of the rewards program. 2% cash back is certainly better than nothing.

 

Unless Wizard was dealing with a huge percentage of charge backs, which would either be a major coincidence or conspiracy, taking away the cc option for everyone due to a few bad apples would be a massive overreaction imho. If it's true that they put in a blanket ban on cc payments, I'd surmise that something is definitely up with them.