Quote:
Originally Posted by FoxtrotAlpha
I think a lot of them will begin using obscure, shady payment processors now, but I assume they will be more difficult to have suspended/removed.
|
Well so far Paypal has been the most difficult to deal with of all processing companies - due to their enormous size, they were able to absorb whatever problems came along with processing for those file locker sites. Chargebacks, refunds, absurd amount of DMCAs and AUP violation complaints etc. You couldn't even complain to VISA because it was useless - obviosuly they would never suspend Paypal's merchant account because it's too big. Well, in theory that was maybe possible, but only in theory.
But those smaller billing companies are basically nobodies for VISA and they'll easily suspend their merchant accounts if annoyed enough by a steady stream of DMCAs and other complaints. Those smaller billers know that damn well and react nervously for each even a minor bitchslap from VISA. I bet many of them do not even fully understand yet what kind of "clients" those filehosts are and what amount of trouble they bring with them. They will however realize that soon enough and many of the new billing options that those filehosts found after paypal terminations will cease to operate too.
As a matter of fact, none of the file lockers managed to maintain an account with a billing company for a long period of time so far, or their own merchant accounts, after their paypal account was terminated. Amount of abuse is so huge it seems that nobody except for paypal can sustain it in the long run. Oron, filesmonster, uploaded.to, all lost whatever processing account they were able to find pretty fast. Whether the same will be true for all other filehosts now that most of them lost paypal remains to be seen, but I think it is only a matter of time until Visa and MC will terminate them all.