Business Thread For Paysite Owners Doing More Than $10k Per Month - Important Read

[NETbilling]

Hi All,

For years bank limitations from merchant account banks has prevented us from setting up smaller merchants to have their own merchant account and process with NETbilling for pay sites. This has never been an issue for product sales (both adult and mainstream) because those types of accounts are not considered high risk by the banks so we are able to set them up typically in 1 day.

Well we have some excellent news for smaller merchants!

Because of our multiple banking relationships, we are now able to setup adult pay site merchant accounts in the USA if processing over $10k per month and 3 months of previous history through any other processor, or $20k per month if outside of the US.

Please contact our sales department for more information and feel free to post comment and questions here or setup a meeting with us next week for Webmaster Access in New York.

Thank you

[GrouchyAdmin]

Great news for people who couldn't quite get enough traffic to hop on a gateway. NetBilling's still #1.

[NETbilling]

I should not have listed it as a business thread - PICS!

[wargames]

Very nice

[Sly]

That's great news for smaller and newer companies. Congratulations. More options are always nice.

[J$tyle$]

Originally Posted by NetBilling

I should not have listed it as a business thread - PICS!

Thanks for lunch yesterday, Mitch.

Pleasure seeing you as always!

[NETbilling]

Originally Posted by wargames

Very nice

Steve - hit me up. We have some biz to discuss

[Socks]

Neat, that puts a lot of people into a new bracket of billing charges..

I have a question.

How does Netbilling honestly compare to CCBill from a site owners point of view?

- Do you handle an affiliate program as they do, paying the affiliate and site owner seperately and seamlessly?
- Do customers call and cancel with you the same way? Are there any differences in the cancellations for customers, or other customer service queries?
- Any other major things to think about for someone changing to your service, anything they might not think of before switching?

PS: You should sticky this.

[Socks]

lol.. The banks are relaxing their rules because...

THEY FUCKING NEED US NOW, EH BITCHES???

[Andre]

Looks interesting, I have many questions. Mitch, can you contact me?

[Buzz]

wow that's pretty good news!

[NETbilling]

Originally Posted by Socks

Neat, that puts a lot of people into a new bracket of billing charges..

I have a question.

How does Netbilling honestly compare to CCBill from a site owners point of view?

- Do you handle an affiliate program as they do, paying the affiliate and site owner seperately and seamlessly?
- Do customers call and cancel with you the same way? Are there any differences in the cancellations for customers, or other customer service queries?
- Any other major things to think about for someone changing to your service, anything they might not think of before switching?

PS: You should sticky this.

Since we are a payment gateway and there are exceptional third party affiliate systems out there such as NATS, MPA, ES, Partnersoft, Affiliatetracking and others, do do not have an internal affiliate system. They all work well with NETbilling. You can use that and do your own payouts or use Webmasterchecks to do so.

Cancellations are handled the same way as with a 3rd party processor, via online form, email, or by calling our customer service center 24/7 if we handle customer service for you. I encourage you to call our sales department and find out more and request a walkthrough.

We will certainly save you $$$.

[NETbilling]

Originally Posted by J$tyle$

Thanks for lunch yesterday, Mitch.

Pleasure seeing you as always!

Anytime Jonathan! Always great seeing you. Thanks for the biz too!

[Bomber8888]

Thats great news for the industry and bad news for any third party biller.

Bomber

[wargames]

Originally Posted by NetBilling

Steve - hit me up. We have some biz to discuss

icq sent

[Brad Mitchell]

Congratulations Mitch that is excellent news!

Brad

[NETbilling]

Originally Posted by Brad Mitchell

Congratulations Mitch that is excellent news!

Brad

Thanks Brad!

[Evil-Dan]

Hey Mitch - long time no chat :-)

Can you give us an update on the charge back limitations and currencies then please?

IE - is it still 1% of all transactions for charge-backs?

And if these are for smaller accounts, then does the 1% rule apply anyways if the merchant only does a small number of actual charge-backs

(example - lets say you do $10,000 per month and have a charge-back rate of 2.8%, but you only have 29 charge-backs in total)

I ask this as I am led to believe in Europe that smaller merchants only get noticed once they go over 50 charge-backs per month for either Visa or MasterCard

And on the currencies front, is this for USD only?

[NETbilling]

Originally Posted by Evil-Dan

Hey Mitch - long time no chat :-)

Can you give us an update on the charge back limitations and currencies then please?

IE - is it still 1% of all transactions for charge-backs?

And if these are for smaller accounts, then does the 1% rule apply anyways if the merchant only does a small number of actual charge-backs

(example - lets say you do $10,000 per month and have a charge-back rate of 2.8%, but you only have 29 charge-backs in total)

I ask this as I am led to believe in Europe that smaller merchants only get noticed once they go over 50 charge-backs per month for either Visa or MasterCard

And on the currencies front, is this for USD only?

Hi Dan,

I hope you are well. You are correct on the chargebacks below but the bank may decide to take action if your chargeback ratio is too high, even if you are under 50 Mastercard or 100 Visa (or 200 offshore). The same rules apply whether you are with a 3rd party processor or your own merchant account.

Thanks

[MikeSmoke]

Hi Mitch - that is great news

One question - is the 10K number per paysite, or can several paysites be combined in one account that does over 10K?

thanks
mike

[venus]

ANyone who cannot stay below 1% cahrgeback has a serious problem and should re-evaluate how they run their business.

the 1% applies to number of transactions, not the amount you made, so if you have 29 chargebacks you better have more then 2900 transactions for the month and if you have 2900 transactions, your making well more then 10k a month (unless your selling memberships for 5$)

and remember, for each chargeback you lose that money, PLUS you get a fine from the bank, my bank is 25$ per CB.

Originally Posted by Evil-Dan

Hey Mitch - long time no chat :-)

Can you give us an update on the charge back limitations and currencies then please?

IE - is it still 1% of all transactions for charge-backs?

And if these are for smaller accounts, then does the 1% rule apply anyways if the merchant only does a small number of actual charge-backs

(example - lets say you do $10,000 per month and have a charge-back rate of 2.8%, but you only have 29 charge-backs in total)

I ask this as I am led to believe in Europe that smaller merchants only get noticed once they go over 50 charge-backs per month for either Visa or MasterCard

And on the currencies front, is this for USD only?

[NETbilling]

Originally Posted by MikeSmoke

Hi Mitch - that is great news

One question - is the 10K number per paysite, or can several paysites be combined in one account that does over 10K?

thanks
mike

Hi Mike,

That is for your entire company, not per site.

Thanks, Mitch

[NETbilling]

Originally Posted by wargames

icq sent

Hi,

I will ICQ you shortly.

Thank you

[Evil-Dan]

Originally Posted by NetBilling

Hi Dan,

I hope you are well. You are correct on the charge-backs below but the bank may decide to take action if your charge-back ratio is too high, even if you are under 50 MasterCard or 100 Visa (or 200 offshore). The same rules apply whether you are with a 3rd party processor or your own merchant account.

Thanks

thanks for the heads up Mitch

Bottom line is this though with a 1% charge back rate with low transactional volume - If your doing under $10,000 per month with say an average transaction value at $20 each (thats a rough average based on a trial and recurring model), then divide $10,000 by $20 and you get 500 "successful" transactions

1% of 500 transactions equals 5 transactions. To exceed the 1% threshold you only need 5 charge-backs per month (or 1.15 charge-backs per week).

On top of that there is a 6 month window for consumers to charge-back their transactions for no fucking reason whatsoever. Usually its a "honey I have no idea why this charge is on my credit card".

So if only two people charge-back in one month for all of their say 5 months of transactions each, that equates to 10 charge-backs (which throws you into a 2% charge-back threshold)

And thats only with 2 customers charging you back over a given month

I once had a US based merchant account when I was first getting my feet wet in this industry, and I burnt myself silly because of this issue alone

For low volume accounts, I would personally only favor using a European Bank. They have better charge-back rates (2%) and higher total charge-back quotas (200 offshore), and are much more forgiving on adult operators that the US counterparts when things get sticky for them.

I mean have we all forgotten the US banks that ditched adult when the merged with other US banks, and didn't want them on their balance sheets

Or the US banks that were going for funding, and couldn't show their association with adult

I think Mitch is a straight up good guy in our industry and I nothing bad to say about him at all. I just think that anyone who wants to process adult (especially if they are low volume) are NUTS to do it in the United States

Mitch - if I am missing something here, then please let me know. Coz this issue is the one issue that processors and gateways never really cover very well.

I remember well when my gateway caused me to lose my US merchant account, and the gateway said "sorry - we cant help you - its your account and its your problem".

[NETbilling]

Originally Posted by Evil-Dan

thanks for the heads up Mitch

Bottom line is this though with a 1% charge back rate with low transactional volume - If your doing under $10,000 per month with say an average transaction value at $20 each (thats a rough average based on a trial and recurring model), then divide $10,000 by $20 and you get 500 "successful" transactions

1% of 500 transactions equals 5 transactions. To exceed the 1% threshold you only need 5 charge-backs per month (or 1.15 charge-backs per week).

On top of that there is a 6 month window for consumers to charge-back their transactions for no fucking reason whatsoever. Usually its a "honey I have no idea why this charge is on my credit card".

So if only two people charge-back in one month for all of their say 5 months of transactions each, that equates to 10 charge-backs (which throws you into a 2% charge-back threshold)

And thats only with 2 customers charging you back over a given month

I once had a US based merchant account when I was first getting my feet wet in this industry, and I burnt myself silly because of this issue alone

For low volume accounts, I would personally only favor using a European Bank. They have better charge-back rates (2%) and higher total charge-back quotas (200 offshore), and are much more forgiving on adult operators that the US counterparts when things get sticky for them.

I mean have we all forgotten the US banks that ditched adult when the merged with other US banks, and didn't want them on their balance sheets

Or the US banks that were going for funding, and couldn't show their association with adult

I think Mitch is a straight up good guy in our industry and I nothing bad to say about him at all. I just think that anyone who wants to process adult (especially if they are low volume) are NUTS to do it in the United States

Mitch - if I am missing something here, then please let me know. Coz this issue is the one issue that processors and gateways never really cover very well.

I remember well when my gateway caused me to lose my US merchant account, and the gateway said "sorry - we cant help you - its your account and its your problem".

Hi Dan,

We have hundreds of adult merchants processing in the US who easily stay below 1%. Keep in mind that the chargeback rules are the same for those using third party processors or having their own merchant account. It really depends on your pricing, business model and other factors how low your chargebacks can be. We do a hell of a job helping our merchants manage their fraud.

Mitch

[NETbilling]

Originally Posted by venus

ANyone who cannot stay below 1% cahrgeback has a serious problem and should re-evaluate how they run their business.

the 1% applies to number of transactions, not the amount you made, so if you have 29 chargebacks you better have more then 2900 transactions for the month and if you have 2900 transactions, your making well more then 10k a month (unless your selling memberships for 5$)

and remember, for each chargeback you lose that money, PLUS you get a fine from the bank, my bank is 25$ per CB.

Looking forward to seeing you again one of these days.

Mitch

[pr0]

very cool guys....I've got a few clients i might be sending over

[NETbilling]

Originally Posted by pr0

very cool guys....I've got a few clients i might be sending over

Sounds great. Lets set you up as a referring partner. Contact Karen or Wendy here to get that going. We will take great care of your clients.

[SCOOTER]

Netbilling is the only way to go - congratZ guys !!

[NETbilling]

Originally Posted by SCOOTER

Netbilling is the only way to go - congratZ guys !!

Thanks Scooter. CamZ has been with NETbilling for 9 years. CRAZY!

[DatingGold]

Thats great news.. jump on this to get your feet in the door!

[CE_Rashaan]

great news for biz owners

[BOSS1]

still waiting for that email Mitch...

[notoldschool]

so if you average 400-500 sales a month and get more than two chargebacks your fucked? Im sure alot of proggies are going way past that a month.

[NETbilling]

Originally Posted by BOSS1

still waiting for that email Mitch...

Hi,

Not sure which email you are referring to. Can you email me again or hit me up on ICQ. I must have missed something.

thank you

[NETbilling]

Originally Posted by notoldschool

so if you average 400-500 sales a month and get more than two chargebacks your fucked? Im sure alot of proggies are going way past that a month.

The rules are the same whether you use you own merchant account or a third party processor.

Mitch