GoFuckYourself.com - Adult Webmaster Forum - View Single Post - Getting your own merchant credit card account

Sodamninsane · 01-19-2004, 11:44 PM

OK, here?s the idea:

1) Start a website that sells recurring subscriptions to a newsletter about anything non-adult. (Anything = financial news, weather, whale watching, cat juggling, whatever?)
2) Get a merchant account and gateway for this website. The bank people will give this website a cursory check and likely grant you a merchant account for $150. Your fees will likely be 2.5% of sales plus $0.25/per transaction and a statement fee of $10/month
3) Get a shopping cart script (NOT a monthly service provider) that interacts with the gateway via AIM or SIM and customize that shopping cart to handle password management. Cost: anywhere from $300-$800 if you go overseas.
4) Enjoy not paying 14-15% to any of the other third party providers.

And here?s the questions:

1) Legalities. I don?t think this is illegal to do, per se, but of course my merchant account bank would shut me down if they ever found out. Is this illegal?
2) Likelihood of getting caught. Here?s what it would take to get caught IMO (keep in mind that this next part is also a question, in that, here?s where I don?t know exactly what I?m talking about, but it sure does sound logical): Some maniac who for some reason decides to initiate a chargeback calls his credit card company to complain that he ?Paid for an ADULT site and got ripped off?. He fills out his complaint form and sends it off. His bank then gets the money back from my bank. My bank asks for the reason for the chargeback. They tell my bank it was an adult site rip off. My bank says, ?That?s funny, this guy sells cat juggling newsletters?. My bank calls me, says ?What the fuck?, and there we have it.
3) Is anyone out there doing this or thought of this?
4) Let me know how dumb or smart this is
5) BTW, I?m already in the middle of step #3 above, but am hesitant to pull the trigger on the whole deal base on the feedback I get here. I imagine it will be interesting and scathing.

Thanks in advance!

01-19-2004, 11:44 PM
Sodamninsane Registered User Join Date: Jan 2003 Posts: 5	Getting your own merchant credit card account OK, here?s the idea: 1) Start a website that sells recurring subscriptions to a newsletter about anything non-adult. (Anything = financial news, weather, whale watching, cat juggling, whatever?) 2) Get a merchant account and gateway for this website. The bank people will give this website a cursory check and likely grant you a merchant account for $150. Your fees will likely be 2.5% of sales plus $0.25/per transaction and a statement fee of $10/month 3) Get a shopping cart script (NOT a monthly service provider) that interacts with the gateway via AIM or SIM and customize that shopping cart to handle password management. Cost: anywhere from $300-$800 if you go overseas. 4) Enjoy not paying 14-15% to any of the other third party providers. And here?s the questions: 1) Legalities. I don?t think this is illegal to do, per se, but of course my merchant account bank would shut me down if they ever found out. Is this illegal? 2) Likelihood of getting caught. Here?s what it would take to get caught IMO (keep in mind that this next part is also a question, in that, here?s where I don?t know exactly what I?m talking about, but it sure does sound logical): Some maniac who for some reason decides to initiate a chargeback calls his credit card company to complain that he ?Paid for an ADULT site and got ripped off?. He fills out his complaint form and sends it off. His bank then gets the money back from my bank. My bank asks for the reason for the chargeback. They tell my bank it was an adult site rip off. My bank says, ?That?s funny, this guy sells cat juggling newsletters?. My bank calls me, says ?What the fuck?, and there we have it. 3) Is anyone out there doing this or thought of this? 4) Let me know how dumb or smart this is 5) BTW, I?m already in the middle of step #3 above, but am hesitant to pull the trigger on the whole deal base on the feedback I get here. I imagine it will be interesting and scathing. Thanks in advance! __________________ A good friend will help you move--a better friend will help you move a body...