EPASS: A Serious Question

[Barefootsies]

Every time someone is banned in Paypal, or there is a hiccup in Epasporte or some variant everyone screams for their heads first, and then says Shap, CCBill, or some BRO with dollars should start a better version and capitalize on the market.

How much do you think it would take to actually do this?

Factor in the following:
* Merchant Account
* Software Development 4 Back End
* Staff
* Gateway

I am sure there are other things I am missing, but honesty, how much do you think you would need for a venture of this kind in regards to a "replacement" for ADULT and card processing. Also, realistically, how much money there could or could not be in such a venture.

[Forkbeard]

I can't answer your question except to say "a metric buttload." I don't have that kind of business analysis skills.

But I will say this. It's a very hard business to get into, because any payment system robust enough to be useful to the adult business will get hammered on very very hard indeed by an amazing assortment of criminals and shady characters, trying to take advantage of it (and you) in various ways.

The security systems necessary to fend them off (while keeping the system useful to your customers) are not just expensive, they are very difficult to design and maintain.

I'm not really impressed by the way Epassporte has addressed these problems over the years. But I do comprehend that the problems are very big and very, very difficult.

[webair]

More than most of the intellect on this board can imagine? =P

[2012]

Originally Posted by webair

More than most of the intellect on this board can imagine? =P

[Barefootsies]

Originally Posted by Forkbeard

I can't answer your question except to say "a metric buttload." I don't have that kind of business analysis skills.

But I will say this. It's a very hard business to get into, because any payment system robust enough to be useful to the adult business will get hammered on very very hard indeed by an amazing assortment of criminals and shady characters, trying to take advantage of it (and you) in various ways.

The security systems necessary to fend them off (while keeping the system useful to your customers) are not just expensive, they are very difficult to design and maintain.

I'm not really impressed by the way Epassporte has addressed these problems over the years. But I do comprehend that the problems are very big and very, very difficult.

Awesome post.

Well, one thing for sure, they were smart enough to keep Michael O around.

[Sharky]

From what I understand, there will be a competitor coming to market with one VERY soon.

[sextoyking]

Originally Posted by Barefootsies

Every time someone is banned in Paypal, or there is a hiccup in Epasporte or some variant everyone screams for their heads first, and then says Shap, CCBill, or some BRO with dollars should start a better version and capitalize on the market.

How much do you think it would take to actually do this?

Factor in the following:
* Merchant Account
* Software Development 4 Back End
* Staff
* Gateway

I am sure there are other things I am missing, but honesty, how much do you think you would need for a venture of this kind in regards to a "replacement" for ADULT and card processing. Also, realistically, how much money there could or could not be in such a venture.

I have thought about this for a few yrs off and on....

Ccbill would be an excellent choice but mabey there is too much work / risk for them - not sure, they could of done this yrs ago. Especially when it was part of epoch.

Shap doesn't have that kind of cash flow - I dunno.

The hard part isn't the software, employees, etc that's all basically easy, the hard part is the banking relationships (on or offshore), fraud / security checks galore, etc, etc.

With all the new "know your customer" info required, ID checks, etc it's gonna be tough, but not impossible...

Money transfers, fees, deposit fees, withdrawls, etc A company could make some serious coin....

[Barefootsies]

Originally Posted by sextoyking

Ccbill would be an excellent choice but mabey there is too much work / risk for them -

That is my thinking.

If it were so much money in it, other CCB types would have gone into it. Maybe there is more behind the curtain then we see. Last real person or company I knew trying to do it was Chio the Pirate.

[SykkBoy]

Originally Posted by sextoyking

The hard part isn't the software, employees, etc that's all basically easy, the hard part is the banking relationships (on or offshore), fraud / security checks galore, etc, etc.

With all the new "know your customer" info required, ID checks, etc it's gonna be tough, but not impossible...

This is what makes it a very difficult thing to get into.
Then there is the issue of getting people to actually use the service and regain trust that this sort of thing doesn't happen with them.

Sadly, I foresee a lot of wannabes popping up and jumping on this, but I doubt any of them will be taken seriously or even used enough to be profitable. It will be like at all of the shows when there are 25 reps from different billing companies "getting into the adult arena" then never showing up again. There will be a lot of options, but hardly any (if any at all) GOOD options.

[Varius]

Capital/funding is one of the least concerns in such ventures

[Barefootsies]

Originally Posted by Varius

Capital/funding is one of the least concerns in such ventures

Crafty devil.....

[dyna mo]

the hardest part would be finding a programmer that would not back door that mofo.

cash wise $10m

[baddog]

It will take an existing company that is willing [able] to change their TOS to accommodate webmasters and programs worldwide that does not already have baggage/skeletons in their closet.

Should be easy pickings.

[Argos88]

PAYPAL is still processing an illegal ADULT forum with illegal stuff and stolen content like EXTREME-BOARD.com

I can't believe they ban honest mainstream users, when they keep this illegal adult forum... very strange.

[baddog]

I think Paypal can be used if you contact them directly. It is my understanding that they will let programs pay affiliates, and b2b transactions. They just don't want people buying porn with paypal.

[mrsmut]

Originally Posted by Argos88

PAYPAL is still processing an illegal ADULT forum with illegal stuff and stolen content like EXTREME-BOARD.com

I can't believe they ban honest mainstream users, when they keep this illegal adult forum... very strange.

have you tried to report it? what was their answer?

[vicki]

Originally Posted by Forkbeard

amazing assortment of criminals and shady characters

hahahaha I LOVE that line

... remember the old 'good, bad & ugly' board?

[lazycash]

Ask Chio

[lagcam]

Anybody setting up this kind of business will fall over on the same regulatory issues that epassporte have unless they operate within the new guidelines from the beginning, which means KYC and reporting, which in turn of course makes the service less attractive for many of its potential customers.

Times is changing.

[fatfoo]

Staff is free if you get volunteers.
To get volunteers, you business must be fun enough.