Why do billing companies take such a large %? - GoFuckYourself.com

xNetworx · 04-25-2006, 02:01 PM

I was wondering how billing companies justify taking 10-15% of the gross revenue a site brings in through them. Why is this % so high? 5% would put them in poverty or what?

RayBonga · 04-25-2006, 02:09 PM

This one should get some nice answers

seeric · 04-25-2006, 02:12 PM

volume is the leverage factor.

BannerDept · 04-25-2006, 02:14 PM

my guess is they want to make a lot of money.

marketsmart · 04-25-2006, 02:16 PM

well how they justify it is that they handle the customer support. which in turn keeps you cb rate low. plus they bundle you with tons of other people to also help keep cb ratios cool if a few people cross the threshold. of course they do all this groovy scrubbing (over scrubbing) to help with cb issues too.

all in all, they provide a nice service but i think 10-15% is too high. i would be happy to see all the services provided by a ccbill or a paycom at 6-8% with no volume commitment...

DAVESNOTHERE · 04-25-2006, 02:16 PM

ibill takes 100%

JuiceMonkey · 04-25-2006, 02:18 PM

Quote:

Originally Posted by DAVESNOTHERE

ibill takes 100%

JOKER · 04-25-2006, 02:23 PM

Quote:

Originally Posted by DAVESNOTHERE

ibill takes 100%

I vote for this post as reply of the year

Hunter_ST · 04-25-2006, 02:27 PM

You really do need to take into account the customer support and affiliate program tools.

Unless you are a very large player, it is simply not cost effective to have 24-hour telephone support for credit card users with issues, or to create your own member management software and affiliate program, plus handle the payments to affiliates.

That said, I'd like the percentage to be lower, too... but the fact is that everything is expensive these days. You just need to pass it along to the customer.

cams2chat · 04-25-2006, 02:27 PM

Yes Ibill is a good example. I do good volume and yes the CCbill % is a big chunk monthly. The upside is they have a high volume business with a good income for themselves and I even like the hard scrub...... protects them and that in turn protects me.

directfiesta · 04-25-2006, 02:28 PM

Quote:

Originally Posted by JOKER | JOKEREMPIRE Inc.

I vote for this post as reply of the year

I second that ...

http://www.ibillsucks.info

WWC-Pajio · 04-25-2006, 02:30 PM

....well that's a good Q!! I think eveyone is looking for more money..

Snake Doctor · 04-25-2006, 02:31 PM

The same reason a dog licks his own nuts

Pornwolf · 04-25-2006, 02:32 PM

It's fair. After thier costs and all it makes sense. Its not like we are processing non adult stuff. In that case you can expect 6% rates. Adult is only a few % more.

uno · 04-25-2006, 02:34 PM

You think a party bus is cheap?

Validus · 04-25-2006, 02:35 PM

This came to my mind first...

Customer Support (consumer)
Customer Support (merchant)
Hardware
Merchant accounts
Staffing
Programming
Buildings/Offices
Redundancy
Security
Collection

The Duck · 04-25-2006, 02:39 PM

wouldnt you?

Manowar · 04-25-2006, 03:05 PM

Due to the risk as well

StuartD · 04-25-2006, 03:07 PM

short is "because they can"

NETbilling · 04-25-2006, 03:14 PM

Hi,

Alot of the 10-20% has to do with risk, especially in this industry. Merchants willing to take the risk on their own accounts through a merchant account will simply pay less for processing and have a greater amount of control.
Our average high risk merchant pays a total of about 6% (depending on average ticket price) and our average mainstrema client pays about 3.5-4%.

Questions?

Mitch

billywatson · 04-25-2006, 03:17 PM

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.

Validus · 04-25-2006, 03:23 PM

Quote:

Originally Posted by NetBilling

Hi,

Alot of the 10-20% has to do with risk, especially in this industry. Merchants willing to take the risk on their own accounts through a merchant account will simply pay less for processing and have a greater amount of control.
Our average high risk merchant pays a total of about 6% (depending on average ticket price) and our average mainstrema client pays about 3.5-4%.

Questions?

Mitch

Yes! Netbilling rocks

Tapaz · 04-25-2006, 03:43 PM

coz they like to take your money?

Kevin - The PNN · 04-25-2006, 03:45 PM

Quote:

Originally Posted by DAVESNOTHERE

ibill takes 100%

A men....

SwirlsGirl · 04-25-2006, 03:49 PM

LOL.... IBILL takes 200% all of your sales thru them plus the interest on your late fees on your mortgage,car payment,hosting etc!
SwirlsGirl

PornAddict · 04-25-2006, 04:05 PM

Quote:

Originally Posted by DAVESNOTHERE

ibill takes 100%

Absolutely awesome!

- PornAddict

webair · 04-25-2006, 04:14 PM

cause you pay what they charge

Fetish · 04-25-2006, 11:46 PM

Quote:

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.

You think 15% is a bargin? LOL

David - PG · 04-26-2006, 03:20 AM

Quote:

Originally Posted by pimpporn

5% would put them in poverty or what?

Yes (in adult).

Nicky · 04-26-2006, 03:28 AM

IMO 10% is justified, but up towards 20% is just too much

nofx · 04-26-2006, 03:51 AM

the workers slave, the rich get more

John69 · 04-26-2006, 08:30 AM

Quote:

Originally Posted by DAVESNOTHERE

ibill takes 100%

plus some

ajrocks · 04-26-2006, 08:54 AM

Maybe because they are in business to make money? Or maybe because they are dirty pigs that should die.

seeric · 04-26-2006, 08:55 AM

Quote:

Originally Posted by DAVESNOTHERE

ibill takes 100%

why didnt i think of that.

ServerGenius · 04-26-2006, 09:01 AM

that's why I love vxsbill they charge 50 euro cents per transaction plus the
VISA/Mastercard fee of roughly 5%

emaginiKris · 04-26-2006, 09:06 AM

credit card processing is a headache and a half, i used to manage the fraud prevention for one of them and trust me its not a walk in the park.

coolegg2 · 04-26-2006, 09:55 AM

CCBill is a bargain at 12.5% It allows me to focus on the core of my business - serving up damn good porn.

DAVESNOTHERE · 04-26-2006, 02:28 PM

Quote:

Originally Posted by A1R3K

why didnt i think of that.

i know this because i use to work for the fucked up company

dmhubby · 04-26-2006, 02:30 PM

Because they can

04-25-2006, 02:01 PM	#1
xNetworx So Fucking What Industry Role: Join Date: Jan 2004 Location: Whore Island Posts: 14,445	Why do billing companies take such a large %? I was wondering how billing companies justify taking 10-15% of the gross revenue a site brings in through them. Why is this % so high? 5% would put them in poverty or what? Last edited by xNetworx; 04-25-2006 at 02:03 PM..

04-25-2006, 02:14 PM	#4
BannerDept Confirmed User Join Date: Apr 2006 Posts: 511	my guess is they want to make a lot of money. __________________ ICQ: 106-293 Summer Design Specials!

04-25-2006, 02:27 PM	#9
Hunter_ST Confirmed User Join Date: Feb 2003 Location: Getting messy... Posts: 763	You really do need to take into account the customer support and affiliate program tools. Unless you are a very large player, it is simply not cost effective to have 24-hour telephone support for credit card users with issues, or to create your own member management software and affiliate program, plus handle the payments to affiliates. That said, I'd like the percentage to be lower, too... but the fact is that everything is expensive these days. You just need to pass it along to the customer. __________________ Splosh Cash Wet and Messy Fetish Program I hate to advocate drugs, alcohol, violence, or insanity to anyone, but they've always worked for me.

04-25-2006, 02:27 PM	#10
cams2chat Confirmed User Industry Role: Join Date: Oct 2005 Location: Let me look out the window Posts: 288	Yes Ibill is a good example. I do good volume and yes the CCbill % is a big chunk monthly. The upside is they have a high volume business with a good income for themselves and I even like the hard scrub...... protects them and that in turn protects me. __________________

04-25-2006, 02:30 PM	#12
WWC-Pajio Confirmed User Join Date: Mar 2006 Location: ICQ: 315-477-529 Posts: 3,846	....well that's a good Q!! I think eveyone is looking for more money.. __________________ Pajio Pajio [at] WorldWideContent.com ICQ: 315.477.529 Skype: WWC-Pajio YOUR CHOICE FOR QUALITY CONTENT 15,000+ DVDs / 300+ Studios / 80+ Niches / High Res Photos / Any Format Encoding / 2257

04-25-2006, 02:09 PM	#2
RayBonga too cool for highschool Join Date: Nov 2005 Location: East side, West side, Worldwide! Posts: 12,164	This one should get some nice answers

04-25-2006, 02:12 PM	#3
seeric .......... Industry Role: Join Date: Aug 2004 Location: .......... Posts: 41,917	volume is the leverage factor.

04-25-2006, 02:16 PM	#5
marketsmart HOMICIDAL TROLL KILLER Industry Role: Join Date: Dec 2004 Location: Sunnybrook Institution for the Criminally Insane Posts: 20,419	well how they justify it is that they handle the customer support. which in turn keeps you cb rate low. plus they bundle you with tons of other people to also help keep cb ratios cool if a few people cross the threshold. of course they do all this groovy scrubbing (over scrubbing) to help with cb issues too. all in all, they provide a nice service but i think 10-15% is too high. i would be happy to see all the services provided by a ccbill or a paycom at 6-8% with no volume commitment...

04-25-2006, 02:16 PM	#6
DAVESNOTHERE Registered User Join Date: Mar 2006 Posts: 37	ibill takes 100%

04-25-2006, 02:31 PM	#13
Snake Doctor I'm Lenny2 Bitch Join Date: Mar 2001 Location: On top of my soapbox Posts: 13,449	The same reason a dog licks his own nuts __________________ sig too big

04-25-2006, 02:32 PM	#14
Pornwolf Drunk and Unruly Join Date: Jan 2002 Location: Hollywood Posts: 22,712	It's fair. After thier costs and all it makes sense. Its not like we are processing non adult stuff. In that case you can expect 6% rates. Adult is only a few % more. __________________ I've trusted my sites to them for over a decade... Webair, bitches.

04-25-2006, 02:34 PM	#15
uno RIP Dodger. BEST.CAT.EVER Industry Role: Join Date: Dec 2002 Location: NYC Area Posts: 18,450	You think a party bus is cheap? __________________ -uno icq: 111-914 CrazyBabe.com - porn art MojoHost - For all your hosting needs, present and future. Tell them I sent ya!

04-25-2006, 02:35 PM	#16
Validus Confirmed User Industry Role: Join Date: Jul 2001 Location: Calgary, Canada Posts: 4,012	This came to my mind first... Customer Support (consumer) Customer Support (merchant) Hardware Merchant accounts Staffing Programming Buildings/Offices Redundancy Security Collection

04-25-2006, 02:39 PM	#17
The Duck Adult Content Provider Industry Role: Join Date: May 2005 Location: Europe Posts: 18,243	wouldnt you? __________________ Skype Horusmaia ICQ 41555245 Email [email protected]

04-25-2006, 03:05 PM	#18
Manowar jellyfish Join Date: Dec 2003 Posts: 71,528	Due to the risk as well

04-25-2006, 03:07 PM	#19
StuartD Sofa King Band Join Date: Jul 2002 Location: Outside the box Posts: 29,903	short is "because they can" __________________ This is me on facebook This is me on twitter

04-25-2006, 03:14 PM	#20
NETbilling Confirmed User Industry Role: Join Date: Jan 2002 Location: Huntington Beach, CA Posts: 8,584	Hi, Alot of the 10-20% has to do with risk, especially in this industry. Merchants willing to take the risk on their own accounts through a merchant account will simply pay less for processing and have a greater amount of control. Our average high risk merchant pays a total of about 6% (depending on average ticket price) and our average mainstrema client pays about 3.5-4%. Questions? Mitch __________________ Mitch Farber CEO - NETbilling, Inc. Email / Phone: 888-357-8166 / 661-252-2456 Transaction processing & 24/7 call center services with exceptional rates and flexibility, since 1998!

04-25-2006, 03:17 PM	#21
billywatson Confirmed User Industry Role: Join Date: Aug 2002 Location: The Valley o' Smut. Posts: 3,281	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. __________________ We're Fabulous! PROTECT YOUR CONTENT on Twitter I Shoot Porn.

04-25-2006, 03:43 PM	#23
Tapaz Confirmed User Join Date: Jun 2005 Location: CamCity Posts: 1,745	coz they like to take your money?

04-25-2006, 03:49 PM	#25
SwirlsGirl So Fucking Banned Join Date: Feb 2006 Location: between east coast and vegas Posts: 2,067	LOL.... IBILL takes 200% all of your sales thru them plus the interest on your late fees on your mortgage,car payment,hosting etc! SwirlsGirl

04-25-2006, 04:14 PM	#27
webair Confirmed User Industry Role: Join Date: Feb 2002 Location: NYC, NY Posts: 8,531	cause you pay what they charge __________________ ~ Webair Dedicated Cloud Servers™ ~ WEBAIR VSYS™ Virtual Hosting Platform ~ Superior CDN Network ~ ~ Managed Dedicated hosting Specialists ~ DISCOUNT DOMAIN NAMES! ~ WEBAIR FUSION IO MANAGED CLOUD SERVERS! ~ *ICQ:* 243116321 - *TWITTER* - @WEBAIRINC - E-Mail: [email protected]

04-26-2006, 03:28 AM	#30
Nicky Confirmed User Industry Role: Join Date: Mar 2003 Location: Sweden Posts: 30,069	IMO 10% is justified, but up towards 20% is just too much __________________ gfynicky @ gmail.com

04-26-2006, 03:51 AM	#31
nofx Too lazy to set a custom title Join Date: Nov 2002 Location: Virgin Mary's womb Posts: 16,826	the workers slave, the rich get more __________________ Often times I wonder why There's love and hate, theres live or die. When sickness comes I must decide: When feelings go, theres suicide.

04-26-2006, 08:54 AM	#33
ajrocks Confirmed User Join Date: Nov 2004 Location: On Uranus Posts: 4,526	Maybe because they are in business to make money? Or maybe because they are dirty pigs that should die. __________________ SEO Strategy - Digital Strategy - Cannabis Lead Generation Skype aj.durden1

04-26-2006, 09:01 AM	#35
ServerGenius Confirmed User Join Date: Feb 2002 Location: Amsterdam Posts: 9,377	that's why I love vxsbill they charge 50 euro cents per transaction plus the VISA/Mastercard fee of roughly 5% __________________ \| http://www.sinnerscash.com/ \| ICQ: 370820 \| Skype: SinnersCash \| AdultWhosWho \|

04-26-2006, 09:06 AM	#36
emaginiKris Registered User Join Date: Apr 2006 Location: los angeles,ca Posts: 32	credit card processing is a headache and a half, i used to manage the fraud prevention for one of them and trust me its not a walk in the park. __________________ Kris Don The Dongelyan Corporation ICQ: 269505872 AOL: emaginicorpkrist MSN: [email protected]

04-26-2006, 09:55 AM	#37
coolegg2 Confirmed User Join Date: May 2005 Posts: 210	CCBill is a bargain at 12.5% It allows me to focus on the core of my business - serving up damn good porn.

04-26-2006, 02:30 PM	#39
dmhubby Owner BlowBangGirls.com Industry Role: Join Date: Jan 2003 Location: Arizona Posts: 185	Because they can __________________ Rob Add Me On Twitter! BlowBang Girls Bathroom Creepers Our Network Our Cash Program