Credit card industry may cut $2 trillion of lines

[notoldschool]

Does not sound good for any type of biz using credit cards for payment. Ouch.

http://news.yahoo.com/s/nm/20081201/...ch_oppenheimer

[Fletch XXX]

id think most regular joes are maxed out anyway lol

[Robbie]

I'm not sure who that may affect exactly. A few weeks ago people were posting about Amex sending out letters to everyone and cutting their credit limit.

I have two business platinum cards and never saw a letter like that.

Maybe the pullback of lines of credit will apply only to the ones that they check on and see that they are a risk, whereas people or businesses that have a big revenue stream and profit won't be affected by it.

Just my guess. They are probably in the same boat as the mortgage crisis. They gave out too many credit cards over the last 10 years to too many people who can't afford them.

[EscortBiz]

Originally Posted by Robbie

I'm not sure who that may affect exactly. A few weeks ago people were posting about Amex sending out letters to everyone and cutting their credit limit.

I have two business platinum cards and never saw a letter like that.

Maybe the pullback of lines of credit will apply only to the ones that they check on and see that they are a risk, whereas people or businesses that have a big revenue stream and profit won't be affected by it.

Just my guess. They are probably in the same boat as the mortgage crisis. They gave out too many credit cards over the last 10 years to too many people who can't afford them.

there is a difference between a amex loc and the cards

[EscortBiz]

someone needs to figure out a way to collect cash payments for porn on a nationwide basis

[JFK]

Originally Posted by EscortBiz

someone needs to figure out a way to collect cash payments for porn on a nationwide basis

Whan an Idea

[IllTestYourGirls]

Originally Posted by EscortBiz

someone needs to figure out a way to collect cash payments for porn on a nationwide basis

Start charging it to your phone. Phone payments will make a return.

I came across this at a cam site:

http://authentication.besite.be/paym...PC=yes&PRC=yes

[StuartD]

Originally Posted by EscortBiz

someone needs to figure out a way to collect cash payments for porn on a nationwide basis

When I was in LA, I was telling people that what we need is a debit solution that'll withdraw the funds directly from one's bank account. They have the cash, they get the membership.

If I had the means, I'd love to do it. But sadly not just anyone sitting at a computer can whip up a processing company.

[Phoenix]

debit would be nifty

[Machete_]

Now if Epassporte reintroduced the load-through-wire/directdeposit...

[After Shock Media]

Originally Posted by StuartD

When I was in LA, I was telling people that what we need is a debit solution that'll withdraw the funds directly from one's bank account. They have the cash, they get the membership.

If I had the means, I'd love to do it. But sadly not just anyone sitting at a computer can whip up a processing company.

Originally Posted by Phoenix

debit would be nifty

You do realize that is already what most US porn buyers currently use right now via ccbill or epoch?

Yeah many just use their debit card that also happens to have a visa logo on it. It is debit - takes the cash out, hard as hell to "chargeback" without actually going to the bank and filling out paperwork to dispute it. Nothing to do with credit really.

[halfpint]

OneBip Phone billing and they accept adult sites

[notoldschool]

Phone billing sucks. Its not worth the time to even throw it in the mix. Chargebacks are way to easy.

[PurrrsianPussyKat]

Originally Posted by StuartD

When I was in LA, I was telling people that what we need is a debit solution that'll withdraw the funds directly from one's bank account. They have the cash, they get the membership.

If I had the means, I'd love to do it. But sadly not just anyone sitting at a computer can whip up a processing company.

It's a good idea in principle, but how many people are going to trust a porn site with their bank account information? Joe surfer doesn't understand "processors". He see's a form with, enter your banks routing number, account number, etc.

Banks give you debit cards that work like cc's anyway.

[emjay]

Originally Posted by notoldschool

Phone billing sucks. Its not worth the time to even throw it in the mix. Chargebacks are way to easy.

For the US, you are right, and only one carrier remains active in the 900 industry, MCI.

But outside the US, chargebacks in most countries are negligible since people tend to pay their phone bills, an essential utility, in full. To this end, we carry the risk and factor payments to our partners.

Phone billing is NOT suited to billing a recurring $29.90 monthly subscription , but is a great way to bill surfers on a "pay-as-you-go" basis and is practically the only way to monetize traffic from the emerging Asian growth markets such as India and China.

[notime]

Originally Posted by IllTestYourGirls

Start charging it to your phone. Phone payments will make a return.

I came across this at a cam site:

http://authentication.besite.be/paym...PC=yes&PRC=yes

Many European countries do more adult turnover in Phonelines then with creditcards.
If you let the consumer choose between creditcard and phonelines/direct debit: over 90% will choose NOT to use a creditcard.

[SmokeyTheBear]

duocash had a great solution for that but it never seemed to take off.

porn/phone cards available at every 7-11

[Paul Markham]

Some of you guys don't understand the situation. They are not going to cut the credit lines of people who have money to spend, they're after those who don't. So thinking of other methods of payments is a bit useless.

Think of it positively. Millions of people who can't buy porn means millions who will be hitting the Tube sites without a credit card. Bigger and bigger hosting bills and less return.

It's this kind of thinking that helped BigClicks make millions after I joined them.

[andy83]

nice thread, and yeah they probably cut the lines of those who have lower than nice credit ratings, and probably those they view as "Danger"

those who have money to spend don't really have to worry. as for porn payments, whats 29.95 or even $39.95/mth look like on credit cards? even if the credit was cut by 30%, if you had 3k, thats still 2.1k of credit.

the actual problem would be more people losing jobs / getting deeper into debt and a host of other problems which leads to them thinking 5-10 times before they buy porn, which they usually buy it without thinking.

also, as more and more stories of people being x-sold unwillingly surfaces, more and more people would rather NOT to buy porn. Thinking from a surfer's mentality, i'd rather surf some tube sites or get some free porn around instead of whipping out that cc and making a purchase for $1.00 trial for 3 days which may lead to hundreds of dollars of x sales.

[StuartD]

Originally Posted by Paul Markham

Some of you guys don't understand the situation. They are not going to cut the credit lines of people who have money to spend, they're after those who don't. So thinking of other methods of payments is a bit useless.

It's not the people who have no money I'm worried about, it's those that have it and are afraid to use their credit cards.

[avalanche]

Originally Posted by Paul Markham

Some of you guys don't understand the situation. They are not going to cut the credit lines of people who have money to spend, they're after those who don't. So thinking of other methods of payments is a bit useless.

Unfortunately that is not correct. The banks are cutting lines of credit and credit card limits across the board. Now not everyone will be cut, but most will feel it in rate or limit. A perfect example is American Express. They are completely shutting down their Business Line of Credit department and reducing line limits as they just were sanctioned for full bank status so they have tighter regulations to fit into, hence the reduction in their overall risk tolerance.

By reducing the sheer quantity of lines and limits on existing lines it gives the bank or institution a way to improve their ratio of risk. Eevn clients who always pay on time and have a good FICO will see, or have already seen, reductions because it makes sense.

This is merely a result of banks needing to tighten their portfolio and it was inevitable given the mortgage crisis.

[Adam X]

well then its all about targeting bank debit cards.. everyone should have one of these, you dont need credit, just your account.. bank debit cards with visa or MC logo makes it easy to subscribe direct from any checking/savings account.. offering this as usual with a foreign debit solution and/or dialer is a good idea as always.