The first and foremost thing you should do however when confronted with this challenge is to try and contact your existing processor and find out what will happen to funds that you are owed, will you be paid (in most cases you will).

The next thing you should do is to evaluate your business billing methods are you offering multiple processors already? If so, simply switch to your backup processor and find a new processor to use as a backup.

However, what happens if you only have a single processor on your site what can you do then?

First things first, you need to make sure you choose a reliable payment processor to start off with companies such as iBill, CCBill, CCBill EU, Netbilling and Jettis are all good processors used by a multitude of sponsors and content providers amongst the other companies.

You will most likely find that these companies are more than happy to work with you in the integration of their system onto your site.

Whilst you are awaiting your setup of your new processor to ensure you do not lose any sales it may be an idea to divert your join page off to a dialer or, perhaps have some form of ‘internal’ billing mechanism set up so that, when you do change over processors you can seamlessly transition your member base across.

Now, presuming that you already have an existing member base what do you do then? How easy or hard is it going to be to transfer them across to your new processor? Well based on the situation some were confronted with when Visa introduced the new fees to process adult payments this can vary from webmaster to webmaster again, as before, the easiest solution for you would be to contact the company you will be using as your primary processor and see what they can suggest.

Hopefully, you will have access to a database of your existing members email addresses this will also come in handy to ensure you can keep recurring those members. Send out an email stating that you will be changing your processor and, ask that, if they would like to remain a member of your site that they update their billing information, it might also be prudent to offer them some sort of recompense for having them change processors perhaps something along the lines of 2 weeks low cost or even free access tot he site, this is sure to mean that most of, if not all of your existing members will input their billing information again enabling you to rebill them until they cancel their membership at our new processor.

Of course nothing is infallible so the best advice i can offer you is to work closely with your new found processor and make sure that the transition period happens as quickly and, as smoothly as possible.

Hopefully this article will be of some use to those who do get affected by their processors going out of business and, will also serve as a warning to have multiple processors in place for those who have not or will not have the need to change your billing company.

Article written by Lee

MMS Billing – What Is It?

MMS Billing is a method of charging surfers using cell phones for access to your sites and services. Much like how the SMS Billing model works however, rather than solely billing for text or images, you can utilize MMS Billing on a wide range of rich media applications including movies, sound and, flash applications.

MMS Billing – What Are The Costs?

The costs for MMS Billing can vary greatly depending on your MMS Billing provider however, as a rough guideline, you can expect to pay anywhere between $0.10 and $0.50 per purchase through the MMS Billing method.

MMS Billing – An Overview.

MMS Billing is still in its infancy across the internet however, with more and more sites becoming WAP enabled and, more and more surfers turning their cell phones on to browse our websites this billing model will soon grow to what the current SMS Billing model is today.

Article written by Lee

Token Payments – What Are They?

Token payments, as they name suggests is a way by which your surfers can access your members area by using pre-purchased tokens as a cash alternative. These tokens are available in a variety of values ranging from US$1 to US$5 and above.

Token Payments – What Are The Costs?

The cost to the surfer (as mentioned above) can vary from solution to solution however, on average the tokens which are redeemed for payment are bought in amounts ranging from US$1 to US$5 and above, these tokens then grant the surfer access to any of the sites that uses the specific token system the surfer purchased ‘credits’ for.

Token Payments – Price Comparisons.

Okay so based on our previous articles we will again say that access to your members area costs an average of US$30 for a months access, now, using the token payment method, you are now able to set certain ‘restrictions’ immediately on the level of ‘access’ your new member can have although, the reality of it is, these restrictions are set by the token provider themselves.

Lets say a surfer has gained access to your site using a US$5 token, what can they get actually have access too – not a lot. Your surfer only has access to as much of the content in your site that his ‘credits’ or ‘tokens’ will allow him to, in fact, the token system itself is much like the current pay-per-view model only, IMHO, not as satisfying to the surfer.

back to the issue at hand, how much will you make from this surfer with the US$5 token who has just accessed your site, well, if your members area is good and you have enough content to keep the surfer there until their tokens run out of credit, then, you will make upto 95% of the initial US$5 token purchase.

The good thing about this payment solution from a webmasters perspective however, is that YOU can actually set how much time each token will last on your site. Therefore, the reality of it is, you could have a surfer join your site with a US$5 token and only see one movie file whereas, a surfer who joined with a Credit card for 30 days access, could in effect strip your site of its content and move onto the next paysite.

Token Payments – Overview.

All in all, i strongly feel that there is a place in todays adult industry for the token payment solution after all, webmasters have to limit access to the amount of content surfers are able to see for free (or cheaply) and start to ‘educate’ todays sufer that they need to spend some money in order to access ‘the good stuff’.

By allowing webmasters to control the content and value of the token payments on their sites this payment solution could, somewhat start this education process for the surfers. Whether this will be a good or, a bad thing however, will depend entirely on the amount of use these relatively new payment solutions get from both webmasters and, ultimately, surfers.

Article written by Lee

Phone Billing – What Is It?

Phone billing, as the name would suggest is a method of applying a ‘charge’ to a surfers normal land-line telephone. This charge is often around the cost of $35 (US).

Once the surfer has called the premium rate number displayed on your websites join page, they are given a code to enter into a form, again, this form could be on your join page or on a separate site.

Phone Billing – What Are The Costs.

To be perfectly honest with you this is all dependant on to many variable factors to give you a good solid answer. However, as mentioned above the standard cost would seem to be in the region of $35 (US) but, this can often vary depending on factors such as the country in which the surfer is calling the premium rate line from, How much the surfers telephone company charges for a call, How much the paysite charges for access, How much the premium rate phone line provider charges, etc etc.

Generally speaking however, the cost to the surfer is almost always made into profit in your pocket, if a call costs $35(US) you will almost certainly make $35(US) from that surfer minus a small percentage (depending on the provider) again however, this figure may vary slightly.

Phone Billing – Overview.

As with SMS Billing, Premium Rate Phone Billing offers a good alternative for your international surfers to access a paysite however, this doesn’t come without its drawbacks. Unless your members area is updated regularly and is of high quality you are going to make $35(US) approximately of each surfer unless, that is, they decide to call the premium rate number again for access to your site for another month.

That said, if you do not want to offer your foreign surfers the option of having credit card or debit card access to your sites Premium Phone Billing would almost certainly be my second choice to make money from them at the present time.

Article written by Lee

One such payment processor, iBill, is currently the premier provider of such solutions worldwide. They handle the payments in real time and all of the back-end services that enable you to run your business.

Of course, there are many issues to consider when deciding on a payment processor apart from their commission rates on your sales, including the following:

How do they handle the billing itself? Is it processed in real time? If your customers do not have immediate access to your site, they may decide not to join.

How do they supply your account reports? You may want to know at 3 a.m. the number of members you have and how they are rebilling. iBill allows you to access detailed, real-time reporting 24 hours a day, so you know exactly who is a member of your site and, more importantly, what their username and passwords are. No one wants to find a member has posted a username and password on a trading site. If this occurs, iBill’s real-time reporting tools give you the ability to stop this immediately.

How comprehensive are the payment options? Do you want to use credit cards, or do dialers or check transactions suit you more? The best way to maximize sales is to accept a full array of payment options. The more options you offer your members, the better the chance you’ll keep them rebilling month after month.

How good is customer service? Does your payment processor offer access to live representatives 24 hours a day, 7 days a week? If so, you’ll resolve customer issues quickly and effectively, which reflects well on you and encourages loyalty from your members.

How good is the fraud protection? Internet fraud is a constant threat. Your payment processor should have state-of-the-art fraud protection systems to guarantee the integrity of every transaction.

Are there multilingual features for international members? Due to the global reach of the Internet, you must find solutions for foreign customers. Ideally, your payment processor’s website should be multilingual and easy to navigate in several key languages, such as German, Spanish, French, and Japanese.

Choosing the right payment processor is a long, arduous task that, if done right, will result in a long-lasting working relationship. In turn, your members will feel confident in your site and stay with it. We hope this article has given you insight into finding the right billing party for your membership or online store. If you need any further assistance please feel free to contact us directly using the form on our site (URL below).

Article provided by Internet Billing Company

ACH (Online Check Payments) – What Is It?

An online check payment is a method of allowing your customers to pay for their goods using their check’s online, in order for your customer to pay via a check they need to have available certain items these are, a current checking account, a valid routing number (found on the check) and, an account number. Funds paid via online checks are automatically debited from the customers bank account.

Online Check Billing – How It Works.

Online check payments are processed in real-time, surfers are automatically accepted and authenticated via their current billing address, social security or, driving license number, once they have been authenticated their payment details are then sent to the ACH (Automated Clearing House) system where this information is automatically accepted as long as the details provided are verified as correct.

Online Check Payments – What Are The Costs?

Utilizing the online check method of billing your customers is actually just as, if not more, cost effective as using online credit or debit cards, in effect, you are guaranteed the funds of the check once they clear as, in all reality, the surfer will not have such an easy time declaring the purchase as a ‘charge back’ because the information needed to pay via an online check is information that in reality, only they have access too.

So, as with our previous articles, lets say your paysite membership fee for one month is US$35, a surfer signs up to your site using an online check, you make, approximately, US$33 from this membership for each and every month the customer (or surfer) chooses to renew their membership.

The one main advantage with online checks however is that, surfers will often feel more ‘secure’ in using them to pay for 3 or 6 month memberships and, as long as their check clears your account, you are almost certainly guaranteed the funds.

Online Check Billing – The Main Benefits.

As mentioned above already, the primary benefit of the ACH payment method is that the customer will almost certainly have funds available in their online checking account to be able to meet the cost of the paysite membership, after all, they wouldn’t give out their banking details if they were not sure the payment would go through. In addition to this advantage there are also several other advantages to using Online Checks as a payment method for example:

Increased Sales.
Reduced Order + Billing Costs.
Faster Payment.
Reduced Credit Card Charge Backs.

ACH Check Payments – Overview.

Whilst ACH check payments are a good alternative for US surfers the one major drawback is that, in today’s global market place they are not a method of payment for international surfers unfortunately, at this time, there are no companies who can offer this service to my knowledge to the ever growing global population.

That said, there is a place in the industry for check processing for adult payments and, with Visa breathing down our collective necks more and more, now would be an ideal time to take an in-depth look at this processing method.

I hope this article has provided you with some useful information regarding the online check payment method.

Article written by Lee

This in itself is not a big problem, online business have been paying taxes for many years, the problems start to occur when you take a look at the current state of the V.A.T system in the EU state members on an individual basis.

The following list shows the percentage of V.A.T that you will need to add to your clients bills if they are located inside a member state of the EU:

Austria – 20% VAT
Belgium – 21% VAT
Denmark – 25% VAT
Finland – 22% VAT
France – 19.6% VAT
Germany – 16% VAT
Greece – 18% VAT
Ireland – 21% VAT
Italy – 20% VAT
Luxembourg – 15% VAT
Netherlands – 19% VAT
Portugal – 17% VAT
Spain – 16% VAT
Sweden – 25% VAT
United Kingdom – 17.5% VAT

This will pose several problems for the adult industry namely, how will our billing processors be able to handle transactions from European Union citizens? After all, with so many different VAT rates across the EU their billing systems need to be able to correctly calculate the correct amount of VAT to the surfers final order.

Several accounting firms have set up new divisions to handle this for the mainstream side of the internet industry however, until just recently, the adult internet was unaware this was happening.

It would seem that although the international market place is a wholly viable one for adult webmasters to break into, it brings with it more complications that simply breaking the language barrier.

This new law will be a good test of the adult industry processors to see how they can handle the economic changes of the global market place and, more importantly, how they handle the new frontiers of international marketing on a global scale.

Article written by Lee

What Is V.A.T?

Value Added Tax (VAT) is a consumption tax levied on goods and services in many countries across the globe. Over the last decade, legislation in the tax systems of Europe, Canada, Japan and South Korea allow for a refund for the majority of non resident entities, worldwide to a refund of VAT in most instances however, especially in the business world, registration must be achieved prior to claiming back your VAT and, preferably before the purchase of Vat able goods takes place.

Who Is Entitled To A VAT Refund?

Most businesses will be entitled to receive a VAT refund however, as the laws vary from country to country, the best way for you as a business owner to find out the laws as they affect you is to contact your company accountant who, should be knowledgable enough to inform you of what you need to claim back from each of the EU member states where V.A.T has been charged.

What Products Can I Claim V.A.T Refunds For?

Most typically value added tax recoverable expenses can take form as one or more of the following items:

Business Property Expenses.
Transportation Costs.
Inter-company Billing.
Marketing + Promotional Services.
Exhibitions, Conferences + Business Meetings.
Importation V.A.T.
Digital Downloads (Business Related).

How Do I Register For V.A.T?

When a company inside the domestic US conducts transactions in the EU countries where value added tax registrations may be required the registration for the VAT refund should be done prior to the transaction taking place however, on occasions which vary from individual EU member states this registration process may be done retroactively. By becoming registered to claim your VAT back the company is legally required to d the following:

1) Register for the VAT in the EU country where the transaction takes place.
2) Account for VAT on all invoices or receipts issued to your European customers.
3) Deduct the V.A.T incurred from your European suppliers of goods or services.

Value Added Tax – An Overview.

When all is said and done, other than the obvious need to increase your pricing structure for certain global markets registering for and, charging value added tax actually has a great deal of benefits. You now get to claim addition refunds from any expenses that you incur from the day to day running of your business, your promotional activities become vat’able so you can now increase the level of global marketing you do and, claim full value back from the EU member states (where applicable). basically, registering in the EU member state will enable your business to grow on a global scale and, at the same time, afford you the luxury of being able to market your goods and services to a greater client base at virtually no cost to yourself this is a good thing especially when you take a look at the growth that international internet usage is making each month.

Article written by Lee

Direct Debit – What Is It?

Direct Debit is quite possibly one of the simplest ways to collect funds from your surfers basically, a form is filled out by the surfer, where they enter their bank payment details, account number, name, sort code. Then, the form is signed either electronically or, in person by the customer, in this case, electronically by the surfer.

Once you have the direct form filled in by your surfer, you may continue to deduct funds from the bank account on the Direct Debit form until such a time whereas the surfer cancels the Direct Debit agreement.

At the present time, around 45% of the population in the UK currently choose to pay their utility bills online by Direct Debit and, around 75% of the total population in the UK have used Direct Debit at least once in addition Direct Debit is also an alternative method of payment in the vast majority of European countries and, it is also used (although not as much) in Australia.

Direct Debit – What Are The Cost?

Direct Debit payments cost around $0.5 for you as a merchant to process, however, this charge, rather than happening on the processors side of the transaction, happens when the Direct Debit request hits your banking account.

This in itself is god news after all, you now ensure that if a membership or product costs $35 per month, you will get virtually the full cost of that membership until such a time when the surfer cancels the direct debit at their bank.

Direct Debit – An Overview.

All in all, Direct Debit is probably one of the only payment solutions that allow you to collect the full price from your surfer at the point of sale and, furthermore, because the Direct Debit method of payment is trusted, this offers your surfers something that no other form of payment can – Peace of mind. There is however one major drawback to this method of payment, it is very hard to find processors that will allow you to utilize Direct Debit on your sites in fact, to date, the main use for the Direct Debit payment method has been payments of utility bills, Gas, Electricity, Water Supply, etc however, many financial institutes will let you pay for goods and services using Direct Debit on ‘credit’ terms which can vary from 1 day to a year interest free or, not as the case so often is.

I strongly feel that within the next 12 months this method of payment could become advantageous to the adult webmaster however, the current online payment processors need to be pushed in order for this to become as widespread as credit and debit card processing is. That said, there are a few online adult companies already accepting Direct Debit as a form of payment so, at least the ‘DD’ revolution has already started.

Article written by Lee

The E-Commerce Dilemma.

Irrespective of whether you are an online bookmaker, bakery or adult pay site owner the fact of the matter remains that only credit card fraud is on the increase and, in addition to the rise of online credit card fraud the methods in which the perpetrators of these crimes carry them out is also changing often combating the methods put in place by the online transaction processors to stop this happening luckily however, this is where ‘scrubbing’ comes into effect.

So What Is Scrubbing?

Scrubbing is a method used by the credit card processor that the companies who’s site you are sending a surfer to uses. Scrubbing is in effect, a method of calculating the probability that any single transaction (or group of transactions) could be fraudulent. That is to say, is being carried out by someone other than the true owner of the credit or debit card.

Scrubbing is probably the single most useful tool provided to our sponsors by the credit card processors to ensure that every transaction that gets sent to them is credible and, once the transaction is allowed (or not) a part of the information contained with the transaction is sent to a central database to help other clients of that processor guard against receiving unlawful transaction purchases.

How Does Scrubbing Affect Me?

As a webmaster, believe it or not, scrubbing is actually a good thing for you. You know that each transaction processed is first of all a legitimate one and, secondly, you know that the sponsor who you are using is not going to go bankrupt due to excessive illegal transaction. This means that the sponsor can improve the services they offer YOU as a webmaster to assist you in making more money.

In essence, the scrubbing of credit card transactions at a sponsors level increases the amount of money you make long term not only with that individual sponsor but, with every other sponsors who uses the same transaction processor.

Article written by Lee.