Quote:
Originally posted by Useless Warrior
Without processing fees, how would it pay for itself? Someone still has to pay Visa if they want to process their cards. What about hosting and support? Money, money, money. It's a noble idea, but it's like saying you don't like eating at Joe's, so you build a restaurant next door where only your friends can eat, but no one has to pay.
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I didn't suggest a system where there are no processing fees, that is just naive. My expression 'No more 15% processing fees' was implying that the processing fees of the system I suggested would be much less than 15% i.e. something like 1% or 2%.
How would it be paid for ? The online porn industry is at least a $500 million a year business, 2% of that is $10 million. That is an awful lot of bucks with which to run a processing system. You could charge 5% or more and repay any surplus to members at the end of the financial year.
CC merchant transaction fees are usually in the region of 3%. If a CC is used to deposit funds into the users wallet then this surcharge should be levied onto the user. This would encourage them to transfer funds using bank to bank transfer which would cut the Card associations out of the loop with all the attendant benefits thereof.
Paypal now sets up a direct debit into your account, easily the best way to do this.
Answer these questions;
If a completely independent industry body existed that offered a billing solution to the online adult industry such that processing charges were in the region of 1-2% would adult paysites use it ?
Would any paysites NOT use it ?
Would it become the preferred payment option for adult paysites ?
Would paysites offer the user incentives to use this system ?
If this industry body is based in switzerland and uses bank to bank transfer to deposit funds into the users wallet what could any government or Card association do about it ?
Would they want to do anything about it ? It is after all not their problem anymore if they are no longer being used to process transactions.
Basically what I was saying was 'guys get together and sort out this problem collectively'. It is an age old maxim that has ALWAYS worked.