For the umpteenth time, I’ve seen some of my favourite NSFW content start disappearing because a payment processor mandated a purge lest they stop providing service. Now I could pointlessly complain somewhere else, but I had a thought: If this sort of thing keeps happening repeatedly, I wonder why a bunch of people don’t just say “Fine, I’ll do it myself.”
What’s actually needed for one of these companies to get started? What barriers are in the way of a payment processor that properly services sites with NSFW content from working out?
In: Economics
The barriers to creating a payment processor are non-trivial, but not horrible to overcome.
The real issue is fraud and charge-backs.
NSFW content has a much higher rate of both than almost any other category.
Unless you have the secret to only accept payments from legit customers who will then not have regrets about their purchases, you will end up with a lot of reversed payments, and before long the upstream financial institutions that you rely on to move money around will cancel you.
Dealing with fraud and charge-backs is expensive for credit card issuers and other financial institutions.
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