opinion

Show Me the Money

I wrote this column for XBIZ World's billing issue, in which the vagaries of processing and transacting for adult products and services are laid bare for the edification of the industry, providing a full picture of a side of the business where, unfortunately, most of the really bad stuff happens, like ripping off consumers and fellow merchants for millions of .

It is not the sort of corrupt activity that tends to land people in jail, although it should be. In adult, people go to jail for producing content that was legal up until the moment a jury of their peers (LOL) tells them it no longer is; a pustule of a legal practice, if you ask me, a boil on the ass of our system of jurisprudence and every person who aids and abets it. And yet, it pales — pales! — in comparison to the dark side of money.

Billing, of course, also is the lifeblood of the industry. If money is the mother’s milk of politics, it is the sweet lube of porn. Nothing goes in or out without it. As an industry that more or less exists on the margins of society and profit, however, success is often a result of volume; few make a killing selling a small number of high-priced products; most sell a lot of lower or medium-priced things. As physical products move online, to either be experienced or distributed from there, profit margins have become even smaller. This is not unique to adult, but it certainly holds true for adult. There are huge upsides to the virtual life, like lower overhead, increased efficiency and data tracking, but the bottom line for many is the fact that they simply have been making less money selling the same volume of product that used to support them in the offline environment of the past.

They also are swimming with sharks. Online, if you can control a lot of traffic and also have the ability to enable financial transactions for that traffic, you are in a very good position to become a king among men, a whale among fish. Being in such a position does not guarantee success, riches and power, but one is better positioned to scoop up flakes of gold from a torrent of traffic that could conceivably flow for eons. This is the dream, the plan and the goal for some, anyway. Why go to the trouble of actually producing something if you can prosper off the production of others?

In such a pure capitalist environment, where a complex food chain of service providers demands an increasing slice of the pie, the question remains how much these slices are worth and who really deserves to get a piece, and the answers to that, it seems to me, are in a current, perhaps constant, state of flux. The problem, as I see it, is with the almost total lack of transparency within the process.

I’m not saying that everyone doesn’t know what’s really going on and the swiftness with which certain opportunities are exploited, because we hear about it and experience it sometimes for years before someone in a position to do something about it actually does. But more often than not, it is not we who fix our own problems, but the card association, through new or upheld rules, or government entities like the Federal Trade Commission, the Department of Justice, or Congress, through new or enforced laws or regulations. In the meantime, cumulative damage is done to the industry. How does that make sense to anyone who isn’t profiting from it?

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

Best Practices for Payment Gateway Security

Securing digital payment transactions is critical for all businesses, but especially those in high-risk industries. Payment gateways are a core component of the digital payment ecosystem, and therefore must follow best practices to keep customer data safe.

Jonathan Corona ·
opinion

Ready for New Visa Acquirer Changes?

Next spring, Visa will roll out the U.S. version of its new Visa Acquirer Monitoring Program (VAMP), which goes into effect April 1, 2025. This follows Visa Europe, which rolled out VAMP back in June. VAMP charts a new path for acquirers to manage fraud and chargeback ratios.

Cathy Beardsley ·
opinion

How to Halt Hackers as Fraud Attacks Rise

For hackers, it’s often a game of trial and error. Bad actors will perform enumeration and account testing, repeating the same test on a system to look for vulnerabilities — and if you are not equipped with the proper tools, your merchant account could be the next target.

Cathy Beardsley ·
profile

VerifyMy Seeks to Provide Frictionless Online Safety, Compliance Solutions

Before founding VerifyMy, Ryan Shaw was simply looking for an age verification solution for his previous business. The ones he found, however, were too expensive, too difficult to integrate with, or failed to take into account the needs of either the businesses implementing them or the end users who would be required to interact with them.

Alejandro Freixes ·
opinion

How Adult Website Operators Can Cash in on the 'Interchange' Class Action

The Payment Card Interchange Fee Settlement resulted from a landmark antitrust lawsuit involving Visa, Mastercard and several major banks. The case centered around the interchange fees charged to merchants for processing credit and debit card transactions. These fees are set by card networks and are paid by merchants to the banks that issue the cards.

Jonathan Corona ·
opinion

It's Time to Rock the Vote and Make Your Voice Heard

When I worked to defeat California’s Proposition 60 in 2016, our opposition campaign was outspent nearly 10 to 1. Nevertheless, our community came together and garnered enough support and awareness to defeat that harmful, misguided piece of proposed legislation — by more than a million votes.

Siouxsie Q ·
opinion

Staying Compliant to Avoid the Takedown Shakedown

Dealing with complaints is an everyday part of doing business — and a crucial one, since not dealing with them properly can haunt your business in multiple ways. Card brand regulations require every merchant doing business online to have in place a complaint process for reporting content that may be illegal or that violates the card brand rules.

Cathy Beardsley ·
profile

WIA Profile: Patricia Ucros

Born in Bogota, Colombia, Ucros graduated from college with a degree in education. She spent three years teaching third grade, which she enjoyed a lot, before heeding her father’s advice and moving to South Florida.

Women In Adult ·
opinion

Creating Payment Redundancies to Maximize Payout Uptime

During the global CrowdStrike outage that took place toward the end of July, a flawed software update brought air travel and electronic commerce to a grinding halt worldwide. This dramatically underscores the importance of having a backup plan in place for critical infrastructure.

Jonathan Corona ·
opinion

The Need for Minimal Friction in Age Verification Technology

In the adult sector, robust age assurance, comprised of age verification and age estimation methods, is critical to ensuring legal compliance with ever-evolving regulations, safeguarding minors from inappropriate content and protecting the privacy of adults wishing to view adult content.

Gavin Worrall ·
Show More