"Their chargeback rates are obscenely high". I've always understood that porn companies have difficulty finding a friendly payment processor, but I've never heard that they recieve a high chargeback rate before. Do you know why that is? What do users gain from chargebacking porn websites over chargebacking dropbox, for example?
Their partner sees "XYZ.com" on the bill and goes to look it up. "Why are you buying porn?" "Oh that wasn't me! Someone must have stolen our card" and they submit a chargeback.
I'm sure regret is also a part of it as well. "Why did I spend that money?" And of course, outright theft of services, where they watch/download whatever it is they're interested in and then cancel the charge.
Because the porn site says "free for 3 days" and of course nobody remembers to actually cancel the subscription after 3 days. When they get the bill a month later they say "I never bought a full subscription!" and they cancel.
It's a cat and mouse game. If customers KNEW they couldn't keep getting charged they'd gladly pay $1 to watch for one day. $1 is STILL going to have $0.05 fee, not $0.35 or whatever the CC processor would charge for such a small transaction.
Porn companies. Their chargeback rates are obscenely high. And Bitcoins can't be "clawed back," as grubles put it.
ed: "wants to" instead of "will"