Originally Posted by billywatson

You have to understand how merchant accounts work...ever try to go to your local bank and ask them for a merchant account?

Do well all know what a merchant account is, and how they work?

When you're granted a merchant account, you're essentially granted the right to use VISA/MC/AMEX, and you're also granted a line of credit...against your sales.

THe banks determine the risks of granting a merchant account on 3 basic tiers:

1) the lowerst amount of risk is when you have a storefront. you see the person, you see their ID, and you take their card, and you see them sign for what they just bought.

2) let's say you own a store, and your primary source of revenue is phone sales. you don't see them, you don't see an ID upon purchase, you don't get a signature for the item sold. Riskier. But you spoke to them on the phone.

3) Internet sales carry the most risk for credits, chargebacks, and fraud. no one sees anything. no contact is made on any sort of level. remember, this is for non-adult merchandise.

toss "porn" into the equation, and the banks run for cover.

now, i'm not sure, exactly, how the banks work with CCBill and Paycomm, but I do have a merchant account, and I tried to get one for adult stuff, and I was laughed at (basically).

Toss in 24/7 customer support and chargeback/credit shit they deal with, and 15% is a bargain.

Or, just the cost of doing business.