#503761 - 02/08/1106:00 PMRe: NY Magazine Article : The Geek Kings of Smut
duckduckgoose
AC Cream Wannabe
Registered: 03/14/06
Posts: 589
Quote: And if you're worried that the bank takes too much of the cut, negotiate a better deal. There's more than one bank too choose from. You're too lazy and/or stupid to figure out that you better take a little margin and a decent percentage of the market than a big margin and no percentage at all. FYI: 0% of 0 = 0!
With respect, a large percentage of payment processors forbid adult businesses from using their services. It seems to be less about "morality" issues on the part of the shareholders as it is about chargebacks and fraud by the customers. Adult companies have minimal (if any) leverage in the negotiating process to get better rates. I've heard of some people going to China to get better rates recently, with the same level of accountability, legal adherence, and oversight we have come to expect from everything else that comes from that place.
I'm not saying xvod's new VOD business is great or anything (could be - who knows) -- what I'm saying is that adult payment processing sucks (and always has), and that anyone starting a substantial offering will probably need to pair it with the (equally substantial) development of their own payment processor which they also hedge with non-adult payments from traditional businesses in order to get better rates.