| > they do in fact have much higher levels of fraud and chargebacks Sorry, but [citation needed]. I don't agree with your assertion. I've seen horrible chargeback rates in apps and non-adult VoD. As high as 4.something percent at one point for one developer. The problem: kids. The lack of control over the payment process was killing him. And that's the thing, it's not 1999 any more. You can improve chargeback rates by collecting more data, forcing 3DS, forcing AVS, SMS verification, doing statement charge verification (old school), fingerprinting every authenticated transaction. If my business and my processor's continued business depends on it, I can get beyond reasonable doubt and prove it's you making a transaction. That means a lot more drop-off (AVS alone can be 5%) but chargebacks past that are either your fault or stupidly simple to refute with evidence. But many processors are still just unwilling. The only way things become more reasonable is that we stop forcing otherwise legitimate adult content sites into the arms of companies that coast along on decades-old tech, making the good actors pay to offset the bad actors' actions. Until then, when we can have mainstream processors allay risk fairly, putting a spur-of-the-moment sub-$1 micro-transaction through isn't viable and that's where porn's going to explode. |