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PayPal stops payouts to models on Pornhub

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Re: PayPal stops payouts to models on Pornhub

#61

I’m the last person to jump on the bitcoin bandwagon, but this is one case where I think it’s warranted.

Bitcoin isn't good for transactions. It's too slow, too cumbersome for he average consumer and its value fluctuates so much that you'd have to have dynamic pricing. I love the idea of crypto currency and I really do think, one day, some form of it will be out future. But Bitcoin today just doesn't fit that bill at all.

Shouldn’t there be a futures market for bitcoin like there is for commodities? Where a middleman could lock in the price and do the transactions for both sides? The middleman is taking the risk and charging a fee.

Re: PayPal stops payouts to models on Pornhub

#63
post #7

A chilling effect on free speech. Real alternatives to paypal and credit cards need to enter the market. It sadly looks like my favorite hope is still not ready, but I am hopeful that this is due to slow and careful development that will lead to a stable long term outcome. https://taler.net/en/faq.html

Stripe won't touch adult content, I've tried (chargeback ratio is very high, I don't blame them). Very hard to find processors who will work with adult content of any sort. The real problem is that person to person money transfers shouldn't be prohibited unless by law. Perhaps Pornhub, in the US at least, could use something like Zelle to mediate transfers between patrons and performers (using their bank account to m…

I think this is a US thing. I've tried to do chargebacks before in Europe because a website wouldn't stop billing me, and was told the only thing I could do is cut up the card and get issued a new one.

Re: PayPal stops payouts to models on Pornhub

#64

Earlier quoted context omitted.

There are a lot of porn friendly payment systems. The big issue is chargebacks and fraud.

Fraud has completely different profile on cryptocurrency. They would have zero chargeback percentage. Just think about it.

> They would have zero chargeback percentage. Just think about it.

LOL. Great for the shady porn site operators but not at all good for the consumer who has no recourse. A lot of those chargebacks are perfectly valid because the site operator is some shady fly-by-night site doing shady stuff.

Re: PayPal stops payouts to models on Pornhub

#65
post #33

Earlier quoted context omitted.

My hunch is that would incur unwanted liability from FOSTA-SESTA [1]. Producing content and paying talent out directly is fairly straightforward for adult entertainment. There be dragons if you're attempting to build a marketplace to do something similar. "The Stop Enabling Sex Traffickers Act (SESTA) and Allow States and Victims to Fight Online Sex Trafficking Act (FOSTA) are the U.S. Senate and House bills that as…

Genuine question, MindGeek[1] is a private Canadian company, why are they subject to U.S. law if they build payment network outside of US? [1]: https://en.wikipedia.org/wiki/MindGeek

« Legally headquartered in Luxembourg »

Re: PayPal stops payouts to models on Pornhub

#66

I’m the last person to jump on the bitcoin bandwagon, but this is one case where I think it’s warranted.

> this is one case where I think it’s warranted

How will you deal with fraudulent / sketchy site operators scamming people into sending them money via irreversible payment channels?

Re: PayPal stops payouts to models on Pornhub

#67

Earlier quoted context omitted.

The issue here is that it needs to be easy for a person viewing their credit card bill to know that they paid for something... and not be super weird. I had a buddy who nearly did a chargeback against a club that put "E 11 EVN" on his bill... name is Eleven Club.

>I had a buddy who nearly did a chargeback against a club that put "E 11 EVN" on his bill... name is Eleven Club. Are you sure the name isn't "Club E11Even"? Because there is a rather famous strip club in Miami named E11Even (pronounced Eleven).

I'd just like to add E11EVEN is not a strip club. It is in fact a burlesque club. There is some nudity but not in the same way as a strip club. For any Miami-based HNers, you can find me at the nearby bar, you'll know the one.

Re: PayPal stops payouts to models on Pornhub

#68

Bitcoin will solve this problem.

It's had a decade and it hasn't yet.

20 years after the invention of the light bulb, one of the most important inventions of all time, only 3% in the U.S. were using it. We sometimes forget it, but a decade isn't a long time.

Re: PayPal stops payouts to models on Pornhub

#69

Earlier quoted context omitted.

"The land of the free"

There's a certain value to striving to be free from sex trafficking.

I would be surprised if the best way to free people from sex trafficking is to confiscate money from sex workers. I would also be surprised if the best way was force all sex workers to ask to be paid by a mechanism that either can’t be blocked or can’t be traced.

To adopt a cliche: if you outlaw sex work, only criminals will verb sex workers.

Re: PayPal stops payouts to models on Pornhub

#70

What are the biggest cost centers for a new payment provider? Software engineers? Rack space? Dispute (fraud) resolution? Marketing?

Fraud.

One of the factors in determining your interchange fees as a merchant is your risk profile. It is why a grocery store has a different fee structure than a gas station or a restaurant.

Almost the entire industry is driven by risk profiles.

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