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Originally Posted by robfantasy
... You mention 3ds however i have found it to be a nightmare w/ most customers bailing at the friction point of not understanding it or getting a pw wrong.. How do you deal with this?
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It is a trade off ...
Our customers seem to be adapting and we do lose some because of the 3ds issues -- but those customers that refuse to verify? A large number of them -- when they are new customers are your chargebacks waiting to happen -- the friendly frauds (kids with their stolen credit cards belonging to their parents?) get caught -- they cannot authenticate their parent's card -- BOOM! they are stopped cold.
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Originally Posted by robfantasy
...With your hard scrub which is really good from the advertiser/merchant side, how do you balance the conversion drop on the affiliate side when there seems to be alot of competition w/in the webcam vertical?
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I let other cam sites have the questionable customers and share the chargeback risk with their models and affiliates... LOL. Models that get ripped off are a bigger problem than affiliates really. Affiliates are not asked to jam a dildo in their ass and moan for 20 minutes and never see the money they were promised.
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Would love to hear more of your input as you sound like you truly know what you are talking about.
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Many old/existing customers like to use VPN accounts for adult websites. They have privacy issues for a lot of reasons. I have a rule -- if you are anyone using a VPN the first time you must 3ds verify -- no exceptions. Come back with your public IP and we will cut you some slack. If a customer asks about the high barrier of 3ds I instruct our customer service people to explain that the 3ds verification is for the customer's own protection -- he verifies with his bank that he is using his own card by verifying the password -- no one is committing Internet credit card fraud with his credit card and ruining his credit standing.
Some merchants ask me to 3ds my credit cards -- I comply -- it is a legitimate charge I am making. The real problem is some of the jack-ass banks that do not support 3ds -- we have workarounds that are fair but restrictive. Interesting to note: Many customers will submit 2 or 3 cards that are in the same name until one of their cards issuing bank's participates in 3ds and maintains a verification server -- VISA and MC need to compel 3ds compliance IMHO -- verification online is in their interest too -- at a minimum the banks need to write off a lot of costs contesting fraud, absorbing losses and the expense of issuing new credit cards in the event of a real chargeback -- the bank immediately closes your card account and issues a new card in a new account number.
Most "chargebacks" reported to adult merchants are processor reversals not hard chargebacks from a bank.
The reversal may be from the bank for reasons other than a customer's complaint -- a stolen card, a decline because the customer's credit limit is exceeded, a content decline (adult website) or other non customer contested issue. If the bank feels that your card has been compromised for any reason *including the unauthorized use by a family member* the bank takes your card and shreds it, closed that card account, and you wait for the new card to come in the mail, meantime;
you have problems with any reoccurring payments legitimately scheduled on that card *all your internet subscriptions will not post and charge*
I know this personally. With a number of banks -- I have been victim of both POS terminal (swiped) and Internet (to card present) frauds -- none of the frauds were a 3ds transaction that I made(<period>).