trends

Phone Billing Uncovered

With so many different online billing methods available, the world of processing — the most crucial element of the value chain — can sometimes be a confusing place.

In broad strokes, if you operate a paysite, it is important to cherry-pick the best processors in their respective fields, and offer them all. After all, the more ways a prospective customer has to pay you, the better — both for them, and more importantly, for your bank balance.

One form of billing that should definitely be featured as part of your processing portfolio is telephone billing — not least since the phone is so ubiquitous. There are now more cellphones in my home country of the UK than there are people!

This article aims to help give you a better understanding as to how this particular form of billing works, so that you can make an informed choice when deploying it.

Contrary to popular belief, phone processors like us and others involved in this space do not dictate the end-user costs — the various phone companies worldwide with whom we have interconnect agreements do.

This is why the outpayments vary from country to country. In all those markets that support domestic “premium rate” billing, these numbers are served to surfers at the cost of which, as the name suggests, is charged at a premium and collected by the surfer’s phone company, which, in turn, then pays the company with whom you have an agreement. These then retain their margin and pay the balance to you, the webmaster, whose content initiated the call in the first place.

Since the telephone remains an essential utility to most people, chargebacks are practically unheard of since they tend to pay their bills in full. However, as with mobile, the U.S. is one notable exception — Americans are not legally obliged to pay the 1-900 element of their phone bill. Thankfully, the credit card still reigns supreme here, which is why I actually advise clients not to employ phone billing in this particular country.

Thankfully, the world is a big place and the Internet, being the world’s first truly international medium, allows you to make money on a global scale with this kind of billing.

It is important to bear in mind that when comparing rates from the various processors, all is not as it first appears. A case in point would be when comparing the outpayment rates for Switzerland, which supports up to 5.55 Sfr per minute, but we bill at 4.23 Sfr/minute instead.

Some processors automatically elect to serve the most expensive premium number available in each country, thus at first appearing to be offering the best rates. This strategy can, however, be counterproductive since it can be an instant “turn off” for most prospective customers. We believe it is far better to employ more realistic price-points where possible so that surfers are far more likely to pick up the phone to pay you!

Note that the vast majority of countries throughout the world do not support domestic pay-per-call billing. In such cases, the surfer is invited to make a regular IDD (International Direct Dial) call in order to receive their password. The telco of the country to which the call is made understands that this is effectively “new money” and thus is prepared to pay a portion of the so-called settlement rate that phone companies worldwide use to pay one another. We pride ourselves on offering the highest international outpayment rates within the industry, allowing you to make money from markets such as the huge emerging growth economies of Brazil, Russia, India and China.

Whilst credit card billing is and remains the best way to charge for monthly subscriptions, phone billing is a great way to charge for lesser periods of access time. The bottom line: phone billing will add to yours!

Related:  

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