Oprano Adult Industry Forums - View Single Post

wig · 11-09-2002

Cal,

Guaranteed check solutions are nothing but math and merchant ignorance. The merchant should do the same math.

It is all about throughput. ACH Debit does not charge its' merchants for returned checks, so the question becomes how much throughput do you want to limit in order to reduce returned items (bad checks).

The answer is simple because I have already done the math. If you want to use our TOAST fraud prevention system where we utilize StarCheck, Experian, EpicWare and all our proprietary fraud screening, you are going to eliminate a lot of good transactions with the bad. I can reduce your returns substantially if you want, but do you gain or lose??

We can even initiate two ACH credits to the consumer's account (for pennies like 38 and 43 cents) and then make them use these numbers as a pin code to verify the account. Same with email validation where the transaction is not accepted until the email is received and verified through a pin code.

The problem is, in the adult marketplace, you are dealing with impulse and anomynity. People are not going to provide you with the correct info. The result is you lose way more good transactions producing a net loss.

Since we do not charge for returned items, our adult merchants are better keeping the pipe fully open. The math works here, too. Only a newbie who is worried about bandwidth and someone getting some free access complains. Otherwise, it makes economic sense. They have simply not done the math.

WTS has all the bells and whistles available, and we utilize these extensively in the non-adult marketplace -- especially where tangible products are involved. It's all a question of what you want.

Here is a link where we have put together some info that may provide some addilitional information.

http://www.achdebit.com/sales/study.html

I also would be glad to participate in a thread on this and I know bpj would, too.

11-09-2002	#28
wig Members Join Date: Oct 2002 Posts: 1,248	Cal, Guaranteed check solutions are nothing but math and merchant ignorance. The merchant should do the same math. It is all about throughput. ACH Debit does not charge its' merchants for returned checks, so the question becomes how much throughput do you want to limit in order to reduce returned items (bad checks). The answer is simple because I have already done the math. If you want to use our TOAST fraud prevention system where we utilize StarCheck, Experian, EpicWare and all our proprietary fraud screening, you are going to eliminate a lot of good transactions with the bad. I can reduce your returns substantially if you want, but do you gain or lose?? We can even initiate two ACH credits to the consumer's account (for pennies like 38 and 43 cents) and then make them use these numbers as a pin code to verify the account. Same with email validation where the transaction is not accepted until the email is received and verified through a pin code. The problem is, in the adult marketplace, you are dealing with impulse and anomynity. People are not going to provide you with the correct info. The result is you lose way more good transactions producing a net loss. Since we do not charge for returned items, our adult merchants are better keeping the pipe fully open. The math works here, too. Only a newbie who is worried about bandwidth and someone getting some free access complains. Otherwise, it makes economic sense. They have simply not done the math. WTS has all the bells and whistles available, and we utilize these extensively in the non-adult marketplace -- especially where tangible products are involved. It's all a question of what you want. Here is a link where we have put together some info that may provide some addilitional information. http://www.achdebit.com/sales/study.html I also would be glad to participate in a thread on this and I know bpj would, too.