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Keeping Hosts E-ccountable

Posted On 27 Dec 2000
By : admin

E-commerce is essential to any porn developer building a pay site. A state-of-the-art e-commerce solution will enable your site to accept electronic payments.E-commerce is essential to any porn developer building a pay site. A state-of-the-art e-commerce solution will enable your site to accept electronic payments.

Consumers of adult services are impulsive and burgeoning clienteles. Because they purchase access to adult sites with their credit cards, it is important that your host provide you solid turnkey e-commerce services. \’0% of purchases on the Internet are credit card transactions.

With three to four billion dollars spent on purchasing access to adult sites each year, it is important to brave the technical and business challenges and establish an e-commerce ready site. These challenges can be eased with the selection of an e-commerce enabled host. Such a firm will provide you with a safe and secure method to process credit card payments fast and effectively.

Most adult hosting providers use “third-party processors.” These are independent companies that provide Web merchants with the ability to sell their services and content online. Their services give porn developers the ability to integrate simple, real-time, secure credit card processing solutions into their Web sites. These services are maintained in full by the third-party processor.

They maintain their own merchant account with a credit card company and charge your customers on your behalf. In return, they take a percentage of the money you make on the sale. This payment option is the most flexible for a smaller adult site because it allows you to get your online sales up and running without encountering the prohibitive cost of setting up your own merchant account with a financial institution.

“Most adult hosting providers use ‘third-party processors.'”

Brick and mortar businesses usually obtain a merchant account and are required to pay a deposit. This deposit is quite expensive, and becomes even more so for Web merchants due to the credit card company’s perceived risk. Also since brick and mortar companies conduct business face-to-face, they have the opportunity to conduct most of their sales directly through point-of-sale transaction equipment (we are all by now familiar with those credit card-swiping machines). This means that they can more safely verify the authenticity of the credit card purchase.

In comparison, Web sites only require the credit card number, the cardholder ‘s address and the credit card’s expiration date. Since there is no way to actually verify authenticity through point-of-sale equipment, an Internet transaction is considered more risky by the major credit card companies. For this reason, most merchant banks will charge a minimum $10k deposit.

To avoid such charges we suggest that you use third-party processor affiliated with your hosting firm. Because the third-party processors deal with many small businesses and porn developers like yourself, they can insulate you from heavy merchant costs such as deposits and charge back fees. Only larger businesses with existing in-house IT resources usually attempt to maintain their own order management infrastructure, complete with their own merchant account. Porn developers, on the other hand, have the option to sign up with a third-party processor, sometimes free of charge.

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Keeping Hosts E-ccountable

Posted On 27 Dec 2000
By : admin

E-commerce is essential to any porn developer building a pay site. A state-of-the-art e-commerce solution will enable your site to accept electronic payments.E-commerce is essential to any porn developer building a pay site. A state-of-the-art e-commerce solution will enable your site to accept electronic payments.

Consumers of adult services are impulsive and burgeoning clienteles. Because they purchase access to adult sites with their credit cards, it is important that your host provide you solid turnkey e-commerce services. \’0% of purchases on the Internet are credit card transactions.

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Free Host Follies

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Legal Update – December 2000

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