> It's better from a risk perspective to go ahead and get OF into compliance by banning adult material before buying into the platform.

Except, there would be nothing left to buy.

oh, ok. i was actually looking now for the source, I remember I read that mastercard delined forcing them,but there was nothing mentioned on that article about who actually requested this.

thanks for the information

edit: converting the url posted below this into archive link, to skip paywall: https://archive.is/Aqx8x

Thanks for the heads-up, the article from yesterday:

https://www.ft.com/content/7b8ce71c-a87a-440e-9f3d-58069ca04...

They already do this. Credit card transactions don't "finalize" for 180 days. Until they do, Visa can reach into the merchant's bank account and claw back the funds plus a fee.

Some people who buy porn will lie to other people in their life and open chargebacks if they’re found out, and dealing with those people is a nightmare because they’re lying and they get loud and angry and litigious to try to sell the lie so they don’t lose social standing and/or in-person sex.

Something like Apple Pay, that is rooted in a biometric/pin-verified payment (low fraud) rather than “enter your card number manually” (high fraud) would be a godsend for the industry, since it would detect the lie in the fraudulent chargebacks as described above.

Human beings in many world cultures are such a huge pain when it comes admitting and openly talking about paying for sex and sex-tangential things, that I can understand and grudgingly concede that higher processing fees are necessary. I do not know if they need to be 25%, but they do definitely need to be higher than for other industries.

The risk in this kind of model was much lower when I worked at the payment processor. Direct content like this was always lower chargebacks than subscriptions/trials.

OnlyFans should be aggressively poaching people from the other companies in this space but pay them SF salaries. The expertise they'll get hiring existing employees in the space will help them.

If you've already worked in this industry you'll know to do 3ds/3dsv2 to shift some liability to issuing banks. The card networks have different rules based off their region like MC NA and MC Europe. There are some loopholes to shifting your acquiring process into other regions to get more liability shift as a merchant. Bin routing to maximize your approval ratio, the higher your non-chargeback volume the easier it is to deal with the chargeback volume.

Introduce micro transactions to pad volume. Users less likely to chargeback you want to have each micro transaction as a standalone charge because it increases your volume at the cost of additional card fees. Users unknown or likely to chargeback you want to "batch" or roll these charges into a single charge because then it is only a single chargeback that can happen instead of multiple smaller ones.

Plenty of other stuff...

Yes and no. It's not feasible for me, and I don't know you but I'm gonna go ahead and day it's not feasible for you either. The barriers to entry are extremely high, regulators need to be convinced you know what you're doing, as do banks, and you need to be accepted by enough places for it to be worthwhile people paying for things through you and merchants paying your fee to accept you. You can choose to do only parts of the payments processing picture and that's easier, but it's not easy. Bottom end startup costs would likely be in the hundreds of thousands, ignoring actually developing your payments platform (so just to get everyone onside and regulatory approvals etc), more realistically a budget of say low tens of millions might get one off the ground.

> Besides adult content, what else is considered "high risk"?

Off the top of my head: gambling, medication, gift cards...stuff that's legal but more-likely-than-average to chargeback or default.

Alexa currently has tumblr.com at 114 and Tumblr report about 12M posts a day this year - I'd say that probably still counts as a "top(ish) brand".

For contrast, everything2.com is at 526113.

> Tumblr went from >1B valuation

Yahoo are not known for their savvy approach to acquisitions - they frequently paid well over the odds for the cachet of ownership until Verizon snapped them up.

> to ~3M right

But we don't know how much they were valued at when Verizon bought the Yahoo group in 2017. If they considered Tumblr only worth $3M then before they banned porn, then the porn ban has done nothing to the valuation. Anything else is just conjecture.