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Old 05-12-2003, 10:51 PM  
models
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Join Date: Oct 2002
Location: chicago
Posts: 118
the strategy paycom is using of filing suit against MC is the smartest thing i've seen yet, and i will bet MC will settle favorably with paycom.

here's why:

1. it is impossible for adult online to stay under 1% combined for any length of time. MC KNOWS this, and is using penalties to generate income---pure and simple. even if you do EVERYTHING RIGHT you still cannot stay under 1% combined because of human nature---MANY of our buyers feel guilty about buying porn (that's why most of them buy it online and don't walk into a store) this simple psychology makes adult purchases online naturally suseptible to the chargeback reason of "fraud"---many wimpy guys don't like to admit to their wives that they like to buy porn online. buying a membership to a porn site is not the same as buying a computer online---the pyschology of the purchase is COMPLETELY different---many guys buy with a guilty conscience, and their ego (or their wife's ego) forces the chargeback.

and to add another factor, for many, the adult purchase is an impulse type, masturbatory purchase. shoot the load, the need is gone, chargeback the sale---NO OTHER ONLINE PURCHASE compares to this short-lived need. you don't buy a digital camera online to jackoff. you buy a subscription to wifeysworld.com, et al, to jackoff. MC knows this and setups 3rd party billers for the fall deliberately.

it's extortion pure and simple, and mafia style.

2. MC will have to produce EVIDENCE of loss to substantiate the need to recoup their "loss" through the use of penalties---i believe they cannot produce this evidence.

3. as soon as MC settles it should be time to take on VISA.

gotta give Epoch credit for having balls.
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