Hacker News Reader

Comment by yibg | Hacker News Reader

Adult content usually has a high charge back rate. “What? How did this get here? My card must’ve been stolen” when the spouse sees the statement.

View on HN

Also Onlyfans willfully supported a scammy business model by allowing people to sell content without any preview whatsoever and cash out quickly. What would then happen was that famous women would open an Onlyfans, lie about having nudes on there, tell their fans to unlock the "nudes" for a price, fan unlocks only to discover that the woman was indeed nude but strategically covering all the good stuff. By the time complaints were being lodged the creator had already cashed out. Onlyfans tried to slow down the cashouts but the creators still had a leg to stand on since they technically didn't lie about what they were selling

Interesting. Yeah I would love to know what percentage of charge backs are a result of that vs stolen cards. It seems like adult entertainment has two significant sources of fraud then. A couple of years ago Visa clamped down pretty hard on "high risk verticals" and the threshold of charge backs they need to maintain. See:

https://directpaynet.com/new-visa-rules-dating-adult-info-pr...

Don't chargebacks go to the merchant anyway? Why would the payment processor care?

They still have to deal with it. For example, a previous company I worked at valued every customer service call at ~$13. If it was a <$10 problem we would simply offer to refund the customer in full online, no questions asked.

Wouldn't that only affect the issuing bank, rather than the card processor? The card processor would just process a chargeback like any other CC transaction.

So I could see why issuing banks may not want to support adult content, but then there could be a porn friendly issuing bank that may charge higher fees or something.

That's close to the average I've seen for several European banks, insurances and telcos in costs per call: 10 to 12 euros, which is 11.6 to 14 USD

IDEA: Master/Slave-Card, available in Black or Brown just chargeable with crypto or cash max amount 300$ no address needed, if lost, your problem.

visa/mc giftcards are a thing.

Really? Never heard of that...maybe a US thing then?

In US you can go to many store and get such a card, pay with cash. Downsides are that some merchant (mostly internet ones) will check and refuse to accept such pre-paid options.

I think they fail at places that depend on recurring subscriptions.. so places like showtime mobile, or any place that says get a trial at X dollars, then pay Y dollars per month.. the processors gets some code returned to them telling them that the card is not able to take on recurring payments - and so many places won't work with them..

but they do work for most non-recurring type things akaik.

I have seen people have them fail - because they quickly try to use them, not knowing that many places require at a zip code to be entered that matches the card.. and if you have not logged into the pre-paid-card's portal and set a zip code.. well fail it will.

I’ve never seen that happen. Though tbh I mostly use them for MS. So I don’t have a ton of experience with actually buying stuff with them.

Prepaid cards including virtual cards are available in Europe..

Cant pay with them on OnlyFans, let alone buying used bath water.

I wouldn’t know, I’m just saying the exist too in Europe. Also many of the multi-chain gift cards are also prepaid payment cards they go through the same payment system it’s much easier to leverage it than to build another one.

Reply on news.ycombinator.com