GoFuckYourself.com - Adult Webmaster Forum - MasterCard Sued for Antitrust Violations & Fraud

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- - MasterCard Sued for Antitrust Violations & Fraud (https://gfy.com/showthread.php?t=133294)

Does anybody care about a 5 month old thread?

Quote:

Originally posted by justice
I have worked in the law department for two of the top adult billing companies and I can say this is a fine line Paycom is walking. As a lawyer I can say Paycom may doom the internet adult arena for all of us.

I agree, Mastercard may not cancel Paycoms merchant agreement during the suit but after the law suit, win or lose, Mastercard may decide, just like American Express, to pull out of the adult industry altogether. This would affect all of us as an industry. Where would we be if we could not accept Mastercard as payment.

If you think they cannot make that decision you all are mistaken. Just like any business, including Paycom, they can conduct business with who they choose. It was Paycoms decision to accept Mastercard and when they signed the merchant agreement they agreed to adhere to the credit card association standards regardless what they be.

While working in this industry both companies that I was employed by exceeded the threholds set forth by the associations and I found working with the credit card associations to come into a more compliant scenerio worked out for both companies, my company and the associations now have a good working relationship and they even assist in compliance solutions. These solutions now have us in compliance with the associations thresholds.

We all have to be realistic. This industry has a dark side, may it be friendly fraud, hackers or deceptive practices by some web sites, this is very difficult to prove by the adult industry and the associations and will causes a problem during this lawsuit.

I would suggest Paycom make an effort to work with Mastercard to resolve any concerns or Mastercard may shock and effect us all in the end.

I would not want the weight of the entire adult internet industry relying on the outcome of lawsuit that most likely won't pan out in our favor.

GOOD LUCK!!

Justice

Justice, good first post.

I think there are some factors that MasterCard should consider when it decides what to do.

1. MasterCard cardholders want this material. Depending on the experts you listen to, 40% - 75% of all internet traffic is adult material. The most conservative number is 40%. Your cardholders want this material and pull out their MasterCards millions of times a year to get it in the comfort and privacy of their homes.

2. Site owners are running honest operations. They need to stay below 1% CBs for Visa, and many big non-adult operations cannot acheive this. If we're above this for a sustained period of time, boot the site operator for good. The scammers are gone from this industry. And don't punish refunds, they stop chargebacks.

3. MasterCard is not Amex, MasterCard is a dominant payment form and getting more so every day. The FTC wouldn't be happy about an association like MasterCard redlining an industry for capricious and arbitrary reasons.

4. You, MasterCard, can cut chargebacks by 75% just by some simple security measures to assure that the actual cardholder is the one making the transaction. As most people know and Justice alluded to, "friendly fraud" is the bulk of all chargebacks. Why don't banks cancel and reissue cards when someone denies making a charge? We both know because it's a wink and a smile.

5. MasterCard cardholders want this material. Period.

Quote:

Originally posted by Lensman

Justice, good first post.

I think there are some factors that MasterCard should consider when it decides what to do.

1. MasterCard cardholders want this material. Depending on the experts you listen to, 40% - 75% of all internet traffic is adult material. The most conservative number is 40%. Your cardholders want this material and pull out their MasterCards millions of times a year to get it in the comfort and privacy of their homes.

2. Site owners are running honest operations. They need to stay below 1% CBs for Visa, and many big non-adult operations cannot acheive this. If we're above this for a sustained period of time, boot the site operator for good. The scammers are gone from this industry. And don't punish refunds, they stop chargebacks.

3. MasterCard is not Amex, MasterCard is a dominant payment form and getting more so every day. The FTC wouldn't be happy about an association like MasterCard redlining an industry for capricious and arbitrary reasons.

4. You, MasterCard, can cut chargebacks by 75% just by some simple security measures to assure that the actual cardholder is the one making the transaction. As most people know and Justice alluded to, "friendly fraud" is the bulk of all chargebacks. Why don't banks cancel and reissue cards when someone denies making a charge? We both know because it's a wink and a smile.

5. MasterCard cardholders want this material. Period.

Dead on Lens; An excellent assessment of the situation, as usual.

MasterCard had an opportunity to work with Paycom and the entire Adult Industry before a lawsuit was filed. Paycom offered MasterCard, as ?Justice? well knows, the opportunity to talk to avoid this entire situation, for over a year. MasterCard chose arrogance instead: An easy thing to do if you are a monopoly and exercise tacit control of an industry. What other industry is penalized for issuing credits to cardholders for a purchase? None. So ?just us? or ?Justice??

I think ?Justice?s? post and Lens? reply, carefully read, tells the story. MasterCard wants to start the slow burn of placing blame on EPOCH. Nice try. Our industry knows the score. There is still time ?Justice?. Give this industry its due: We have made you millions every year and we will continue doing so, forever, without risk. (Remember we pay for the chargebacks and the credits and the Interchange and the fees and the fines. Where is there any money that comes out of your, sorry, MasterCard?s pocket?) Stop biting the hand that feeds you, even if we are only giving you a small amount compared to other industries. Every little bit helps. Listen to your customers. They are speaking loudly. They WANT what our clients sell and they WANT to use their MasterCard. They WILL use their Visa if MasterCard goes away, just like they used MasterCard, Visa or Discover when AMEX left. So pulling out of the industry only helps Visa and Discover and the ACH system. When one of your cardholders uses a MasterCard to buy porn, they are also using that same card to buy books, airline tickets, clothes, toys and anything else when they shop online. Shutting off Adult will cost MasterCard in all ecommerce sectors. And BTW, Paycom?s damages won?t go away in the current lawsuit or in any subsequent lawsuit just because MasterCard turns off Adult; they will just increase in another lawsuit, maybe by an entire Class of Merchants. And Paycom won?t go out of business either. We will continue to operate and our client?s websites will continue to be sold and we will continue to stand up to any entity that tries to kick us around. Only the MasterCard stockholders suffer when the MasterCard staffers allow their bruised egos to affect business judgments that should be made for the benefit of the stockholders. The fact of the matter is that MasterCard made and enforced some pretty stupid rules, in my opinion. The people that wrote those rules are protecting their jobs. Understandable. But ill-advised if the stockholder?s interested are to be protected.

It is very interesting that your first post is on a 5-month-old thread ?Justice?. Things that make you go ?hum??.

C:Graucho