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iSpyCams · 11-15-2011, 11:28 AM

Potential carding is a problem but it is not your biggest problem.

Here is the thing: Chat traffic is harder to generate every day. The cost of getting a customer willing to sign up with a credit card is pretty high now. No chatter is going to send that customer to a program paying $10. Most can barely scrape up one customer a week.

Well, a few might, but not enough to be worth your while.

If the $10 is a trial that is supposed to convert into a full membership at some point then you can bet on a conversion rate of less than 30% with chat traffic using a 3rd party biller like ccbill that makes only one or two attempts to convert and then drops the customer.

Then there's your chargebacks. The main driving force behind chargebacks in chat traffic (assuming carding is not a huge issue because your fraud filters are good) is buyer's remorse. This is 100% governed by the purchase price.

If the price of the full membership is 19.95 or less you are going to see chargebacks in the 2-4% range, plus any voluntary refunds and voids you issue. (if you don't have an open refund policy this could be higher)

If it's more than 19.95 but less than $30 your chargebacks will be in the 5-7% range, go over $40 and you are almost guaranteed to have chargebacks at around 10-12% and at least as many refunds again.

Here's the next problem: Chat agents are almost universally sending their customers who are dumb enough to sign up to a plethora of signup pages, telling them one program's signup page is a refund or cancellation request for the previous one and then a third will actually get them two refunds and whatever other bullshit the drunk idiot will believe when he is signing up. This kind of abuse will make your conversions almost zero because even though you are only charging $10, the other programs the chatter is shoving down the customers throat are pretty much going to town with the credit card and charging and cross-selling the fuck out of it. By the time you get around to converting, the bank has placed a hold on the card for suspicious activity.

So even if you can handle all of that you still need to find a biller that is willing to put up with that shit and there aren't many.

11-15-2011, 11:28 AM
iSpyCams Amateur Gynecologist Industry Role: Join Date: May 2009 Location: Medellin Posts: 4,436	Potential carding is a problem but it is not your biggest problem. Here is the thing: Chat traffic is harder to generate every day. The cost of getting a customer willing to sign up with a credit card is pretty high now. No chatter is going to send that customer to a program paying $10. Most can barely scrape up one customer a week. Well, a few might, but not enough to be worth your while. If the $10 is a trial that is supposed to convert into a full membership at some point then you can bet on a conversion rate of less than 30% with chat traffic using a 3rd party biller like ccbill that makes only one or two attempts to convert and then drops the customer. Then there's your chargebacks. The main driving force behind chargebacks in chat traffic (assuming carding is not a huge issue because your fraud filters are good) is buyer's remorse. This is 100% governed by the purchase price. If the price of the full membership is 19.95 or less you are going to see chargebacks in the 2-4% range, plus any voluntary refunds and voids you issue. (if you don't have an open refund policy this could be higher) If it's more than 19.95 but less than $30 your chargebacks will be in the 5-7% range, go over $40 and you are almost guaranteed to have chargebacks at around 10-12% and at least as many refunds again. Here's the next problem: Chat agents are almost universally sending their customers who are dumb enough to sign up to a plethora of signup pages, telling them one program's signup page is a refund or cancellation request for the previous one and then a third will actually get them two refunds and whatever other bullshit the drunk idiot will believe when he is signing up. This kind of abuse will make your conversions almost zero because even though you are only charging $10, the other programs the chatter is shoving down the customers throat are pretty much going to town with the credit card and charging and cross-selling the fuck out of it. By the time you get around to converting, the bank has placed a hold on the card for suspicious activity. So even if you can handle all of that you still need to find a biller that is willing to put up with that shit and there aren't many.