Well the processors should be to blame for this not the paysite owners.

Afterall its the processors who let these fraudulent transactions get past thier scrubbing methods :2 cents:

I realize this isnt how it works now but it should do and nothing will be done about it until the entire industry starts to persue fraudulent chargebacks that have been made by surfers who actually do visit the sites as well as by those individuals who have had their CC's used by dishonest affiliate programs.

Why dont we hear more about affiliate programs reporting fraudulent webmasters to the authorities? Most likely because they are scared at what will happen to them in the process.

Unfortunately it is a vicious circle that isnt going to end until something starts to be done about the problems.

Prosecute the fuckers, i dont think there is a country in the word where credit card fraud isnt a crime.

Regards,

Lee

Completely agree with this, who doesnt? The CC companies calling it friendly fraud on their end, giving the money back to the card holder, then fining YOU is a horrible thing. It would never fly where you have a physical signature, and it shouldnt fly in the all digital world either.

I think there are some other factors.

In your sample DVD is a tangible item but paysite offers just a "service". Also, as pointed out billers always taking a side on card holders when it comes to paysites. So they can easily claim "x paysite didn't fullfill their promises" or "I didn't like the site" and get a refund.

I even had a customer who get's a refund through processor after staying as member for two months and downloading GB's of stuff. Just because his account suspended by protection script for one day(account shared).
:feels-hot

Stores have the customers signature for the creditcard transactions. That is the difference between them. That is also the difference between a mail order merchant account. That is why when someone charges back on a mail order account, the company is notified and they can show proof of the person signature.

How about the people who signup for the account use it for like 3 months and then email you complaining that their kid got their creditcard and purchased all this porn.

Well there is no proof of the transaction, and the adult community messed itself up when a few people had the great idea to bang peoples creditcards several times, and run for the borders with all their money.

We have a $99.95 option for 6 months.

It is a discount from the normal $19.95/month

We get about a dozen $99 signups a day.
Our affiliates love them!

Affiliates get paid half - $49.97

http://www.HowIgotRich.com

$1,000 webmaster bonuses for 2004

Nobody wants to pay $100 up front for a porn membership, especially if they have never seen the members area yet... only idiots would want that option.

35% of my signups are the 3 month 69.95 signups non recurr

I would just offere the surfer serveral options. or move to the mircopayment system.

50 rebills :glugglug

First, people have more money than most here give them credit for.

Second, why not charge $100 to get access payable in 5 monthly installments of $20. You can't "cancel" something that you are simply making payments on because you already agreed to the full term of the sale.

The way some programs are run, by the time you're done with the "FREE TRIAL" that rebills in 24 hours at $40 and the two prechecked cross sells that rebill @ $40 each they're already taking in $120....so if they switched to your method they'd be taking a pay cut.

:1orglaugh :1orglaugh

:evil-laug

Ok there are some paysite program owners in this thread which is good to see. Some of the arguments for this super high end initial purchase are humorous at best. Lets go over a few.
1. Card not present transactions. Do not care if it is non tangible or tangible, it is high risk. Chargebacks are easy. Even if you have an item delivered and signed for the chances are slim you will get money out of them from a chargeback.
2. Non tangible item, no delvery address, so zero proof it was the card owner who ordered it. Even if they have a static ip to their house. You can not proove it was actually that person. Also assuming you could costs to chase people all over the world for 100.00 a pop would just be idiotic.
3. Sticker shock. You would scare away alot of potential buyers.
4. Many sites, even those who offer fantastic members area's love forgetfull customers. Many may never notice a 25.00 charge each month, where as a 100.00 charge sticks out on statement.
5. Justification of value. Just try to justify costing that much.

Now having done many trial-1m-3m-6m join options on sites. I can honestly tell you that trials have few to no fraud and turn into rebills often. One month joins stay at under .02% fraud and rebill several times on average. Now when I look over those 3 month to 6 month options. I can tell you the fraud and chargeback rate is a great deal higher. Often on a six month join they will chargeback around month 4 to 5. Leaving you 100-125 or so less than if they went monthly.

Now loyalty bonus's do work well and keep a monthly alot longer.
Ok I gave my braindump on issue.

Edit totally forgot one thing - "if everyone did this" This industry is far from socialist or even getting along much. You sell a site at 100 a pop someone will offer same amount of material for less. It is competition and capitalism at work.

Similar laws apply to the EU

interesting thread.

I have a lot of experience with different pricing options..

The most profitable with the least amount of fraud is a mid priced monthly membership -- $19.95 or $24.95 with no trial..

$19.95 with no trial gets you around $80 minus processing fee.. (4 months average retention over about an 18 month period)

$4.95 converting to $39.95 only gets you about $68 minus fees with a LOT more chargebacks than $19.95 flat..

If per sign up programs could get rid of trials the industry would be so much better off but unfortunately that's not possible..

So we pay our webmasters $50 per sign up on $29.95/monthly memberships as opposed to just $30 on the $4.95 trial.. they're NOT almost twice as hard to sell so it's worth it to promote those..

- Donnie

1st : Chargeback of 100 $ hurt more then 30 $ chargeback

2nd : Lots of people aren't ready to pay 100 $ for porn

I agree and 100 dollar chargebacks are a much quicker way to get to 1 %

Yep and I copied that 99.95 price option from your site and put it on my site and people WILL buy it every once in awhile....Nice chunk of change for one signup.