Quote:
Originally Posted by NewOldPlayer
There is no such thing as high risk processing. That's a term MADE UP by credit card processors to steal money right out of your pockets because adult webmasters are fucking morons and believe everything they are told.
There is no risk buying digital goods online. IF the card is stolen or customer wants his money back, there is a charge back and a charge back fee. The bank makes more money on a charge backs then the initial purchase. The bank would benefit MORE if 50% of your sales were charge backs. So while most of your business is not charge backs, they will make their money the old fashioned way, by placing you in the coined 'high risk' category and charge you 14.5% AND annual fees.
The banks know your overhead is much lower on digital products, (no shipping, no physical products) so they created the category of "high risk" to justify taking a piece of your action.
Any normal vendor that sells merchandise online wouldn't pay more than 3% at the max for processing. But when CCbill took the lead years ago and created the bullshit "high risk" category, webmasters all jumped on board because with the large amounts of money they were making, they didn't mind paying 14.5% of their sales. After that, every single processor followed their lead and started charging high rates... AND when sales started to slump years ago, CCBill created the $ 750 annual Visa fee and because all webmasters are just sheep and paid it, it gave them license to create the NEW $ 500 Master card annual fee. OUT OF THIN FUCKING AIR...AND WE ALL PAID IT.
Adult webmasters are morons for paying these fees. They are not real and 100% exclusive to the 'high risk' market place. LOL Gotta love the name they created...'high risk' sounds really scarey doesn't it? It's just a mind fuck used as a platform to get more of your money.
What really cracks me up is how some webmasters DEFEND the fees and think they are all justified with their 'high risk' logic dumped in their brains by CCBill.
There is no 'high risk', there are no annual fees, it's all created and exclusive to the online adult market because most of us are morons and believe everything the banks tells us.
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Yes, there IS such a thing as "high risk," and no one is making it up. Gouging for it, well... yeah, maybe. I've seen the High Risk classification since I was in call centers in the 1980's. "High Risk" applied mainly to MOTO accounts in those days, when there were far fewer protections on consumers' credit cards and far more trust by merchant banks. (Not to mention, no such thing as digital goods.)
It was possible, in those days, to simply make up valid credit card numbers all day long on a simple mod-10 algorithm, make a massive, completely fraudulent deposit, suck out the money the next day and take off to Rio. As the internet came along and evolved, and banks built better mousetraps, crooks bred better mice.
Banks can not "make more money" on chargebacks if a business owner has emptied his/her deposit account and disappeared. Ohhhh, that never happens, RIGHT? Because everyone in this biz had "Saint" as their close second career choice.
Look, I'm not defending the rates themselves, and I'm certainly not defending processors that screw the little guy because of their own greed or flimsy business plans. But reality check: This is the way it is, it's infantile to take it personally, and unless you've created a better solution, all the misinformed screaming serves no purpose. In any business, one makes his/her best informed decision and hopes for the best. And sometimes gets fucked without lube. Learn and move on.