educational

Five Processing Concerns

Online merchants in the adult industry have many more processing options than they had just a few years ago. In the beginning — throughout the middle and late 1990s — there were few choices. Alternate billing options were difficult to find, and those that did exist came with enormous integration issues and more downside than up.

Thankfully, things have changed since the e-commerce revolution began. Merchant processing options now abound and comprehensive monetization strategies can be adopted to accommodate a global customer base.

Since new payment processing alternatives are hitting the marketplace on an almost daily basis, today's online adult businesses must constantly keep one ear to the ground. Choosing the right processor can add hundreds and thousands of dollars to your bottom line, but choosing the wrong one can cost you dearly.

Do the Math
Often new processors try to make a splash by luring merchants with low introductory rates. Don't be misled. Read the fine print. Low rates are certainly great, but if they're accompanied by hidden processing charges, you may be losing money – in both the long and short run.

Check for Referrals
Don't just take their word for it. This is a fast-paced, constantly changing industry with new businesses forming and disbanding all the time. Some are brilliant, some are doomed to failure — even if they have a big booth at Internext, even if they leave compelling posts on your favorite webmaster board. Before deciding on a billing partner, ask several companies what they've heard. It could save you a ton of time and money.

Is Your Business Model Their Strong Suit?
This is especially true for industry entrepreneurs. The best processor for a colleague's business might be the worst one for yours, so analyze everything. For example, a company specializing in video-on-demand or live video chat will not have the same processing needs as a paysite owner. Look to companies with business models similar to your own for answers to important processing questions.

How Does Support Match Up?
It's Christmas Eve, and your join page is down. When you call your processor, will you get a quick fix or voicemail? Don't sacrifice your business to save a few dollars. If push comes to shove, pay a little extra for a processor with 24/7 live customer support. Do they issue trouble tickets? Do they have a dedicated person on staff to handle merchant issues? If they don't, beware, especially if they're located outside the U.S.

And Finally... Ask Questions
Ask lots of them! Ask everybody! The vast majority of people in this industry are extremely generous with their knowledge. Take advantage of it, and put it to work for you.

Holly Moss is owner of her own consulting firm, HMoss Consulting, which provides integrated processing solutions for unique business models and clientele. She can be reached at holly@hmossprocessing.com.

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

To Cloud or Not to Cloud, That Is the Question

Let’s be honest. It just sounds way cooler to say your business is “in the cloud,” right? Buzzwords make everything sound chic and relevant. In fact, someone uninformed might even assume that any hosting that is not in the cloud is inferior. So what’s the truth?

Brad Mitchell ·
opinion

Upcoming Visa Price Changes to Registration, Transaction Fees

Visa is updating its fee structure. Effective April 1, both the card brand’s initial nonrefundable application fee and annual renewal fee will increase from $500 to $950. Visa is also introducing a fee of 10 cents for each transaction, and 10 basis points — 0.1% — on the payment volume of certain merchant accounts.

Jonathan Corona ·
opinion

Unpacking the New Digital Services Act

Do you hear the word “regulation” and get nervous? When it comes to the EU’s Digital Services Act (DSA), you shouldn’t worry. If you’re complying with the most up-to-date card brand regulations, you can breathe a sigh of relief.

Cathy Beardsley ·
opinion

The Perils of Relying on ChatGPT for Legal Advice

It surprised me how many people admitted that they had used ChatGPT or similar services either to draft legal documents or to provide legal advice. “Surprised” is probably an understatement of my reaction to learning about this, as “horrified” more accurately describes my emotional response.

Corey D. Silverstein ·
profile

WIA Profile: Holly Randall

If you’re one of the many regular listeners to Holly Randall’s celebrated podcast, you are already familiar with her charming intro spiel: “Hi, I’m Holly Randall and welcome to my podcast, ‘Holly Randall Unfiltered.’ This is the show about sex, the adult industry and the people in it.

Women In Adult ·
trends

What's Hot Now: Leading Content Players on Trending Genres, Monetization Strategies

The juggernaut creator economy hurtles along, fueled by ever-ascendant demand for personality-based authenticity and intimacy — yet any reports of the demise of the traditional paysite are greatly exaggerated.

Alejandro Freixes ·
opinion

An Ethical Approach to Global Tech Staffing

One thing my 24-year career as a technologist working to support the online adult entertainment industry has taught me about is the power of global staffing. Without a doubt, I have achieved significantly more business success as a direct result of hiring abroad.

Brad Mitchell ·
opinion

Finding the Right Payment Partner

Whenever I am talking with businesses that are just getting started, one particular question comes up a lot: “How do I get a merchant account?” It’s a simple question, but it has a complicated answer.

Jonathan Corona ·
opinion

The Taxman Cometh for Every Business

February may be the month of romance, but it is also a time when we need to think about something that inspires very little love: taxes. April is not far away, and the taxman is always waiting. This year, federal and most state income taxes are due Monday, April 15.

Cathy Beardsley ·
opinion

The Continuous Journey of Legal Compliance in Adult

The adult entertainment industry is teeming with opportunity but is also fraught with challenges, from anticipating consumer behavior to keeping up with technological innovation. The most labyrinthine of all challenges, however, is the world of legal compliance.

Corey D. Silverstein ·
Show More