Quote:
Originally posted by tonkagunner
I am just trying to figure out why all these adult only billing companies have been getting shutdown.
It doesn't seem like a rational thing for a company such as Visa/Mastercard to stop probably their most profitable customers unless there are other reasons which outweigh this loss.
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The adult sector, despite it's size, is a relatively small portion of Visa/Mastercard overall business. It is however probably the area where a disproportionate amount of time is spent dealing with chargebacks.
Is there a new conservative right trying to influence society with it's idealogy ? Yes. Would many of the current administration in Australia and the USA like to shut down porn ? Sure thing. Is this the primary motivation behind the Visa/Mastercard action ? I don't think so.
I think there are a number of factors at play. Adult causes workload for the card associations due to chargebacks. Adult is not where card associations want to be associated. Card Associations want to create more products for teens , a strategy incompatible with dealing with porn.
There are a multitude of reasons behind the current problems, I think the majority of them have been the fault of the less reputable portions of this industry. If you want to lay blame look at "free" $64 trials, spammers, fine print cross sells and all the other tricks to con people out of their money.
A new era is coming for this industry, new payment systems will prevail and render Visa/MC a mere memory for adult sites. The new payment systems will learn from the past and will not tolerate the rip off merchants.
IPSP's are going to get out of adult or die. A few like ccBill and iBill will hang on for another 12 months but the fat lady is already singing, their demise is only a matter of time.