Where does an exchange find a merchant processor to accept Visa?

[radix-]

I'm looking at starting a private exchange for a specific type of transaction for a limited audience base. I'm having trouble finding any credit card processor who will provide their credit card-to-cash transactions when the end product is BTC. I spoke with several and all say they won't touch that business model. I called Visa but that got nowhere with the overseas customer service..

I understand there is the risk of chargebacks & fraud, but how are exchanges like Coinbase accepting credit cards if no merchant processor will underwrite the BTC exchange business model? Any merchant processors that you know of?

[Rmcdermott927]

Very few services allow credit card purchase of Bitcoin. I think you need to be a big name reputable company to get such permission.

Taking bank transfers is probably an easier task.