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Comment by _etyf | Hacker News Reader

Sounds like a market opportunity for new, non-prudish payment provider.

The problem has never been payment providers' morality. Porn payments come with significantly higher chargeback rates than traditional payments. If someone can find a way to stop red-handed husbands from claiming credit card theft when the wife checks the bill, there's a market opportunity.

The vendor already eats that risk though, right? Chargeback fees cover the credit card company against that risk.

The problem from the credit card companies' point of view is that "I got caught by my wife" isn't a valid chargeback reason, so the vendor can dispute the chargeback, have every incentive to do so, and that's not a fight Visa want to get into.

Of course the reason given isn't "I got caught by my wife", it's "I don't know how that charge got there, it must be ... fraud".

Payment processors are required to maintain a certain chargeback rate with the card companies and so that risk gets passed on to the merchants.

This is all exceedingly well documented and a Google search away if you'd like to learn the inner workings of it.

100% correct, it's sad that we still use hopelessly insecure credit cards, a better system would have non-repudiation built in, charge backs from the customer claiming "I didnt authorise that" would go away

Unfortunately, this would incentivize bad behavior on the part of disreputable merchants. Dark ui patterns would abound in some parts of the internet.

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