-
On the other hand.... You have different fingers
The other issue, with every phone billing service I've heard of, is collectability.
A credit card purchase is guaranteed to go through once an authorization is received. Telephone billing is only paid when funds are actually received from the person whose phone is being billed. If the phone bill isn't paid, the phone billing money is never collected and the merchant doesn't get paid. Patti probably knows more -- she used to run phone sex lines -- but my understanding is that the lag between billing and payout is 12-16 weeks or longer, and the collection rate is, on average, something like 50%. That's for 900 numbers, it may be different for other types of telephone billing.
Of course a credit card can be charged back, so the net collectability is less than 100%, but chargebacks are historically pretty low.
We offer phone billing, but it's never been a big part of our revenue stream, and we intentionally price it substantially higher than credit card and check just because of the lack of speed with which it's paid and the collectability.
I would say probably focus more on euro debit and other payment alternatives. Seems like it would be complicated to offer phone billing only to some customers where studios approved, and I'm not sure a lot of studios would want to take a 30 or 40% cut in money received on those customers to get an additional 10% more business... though I could certainly be wrong.
Posting Permissions
- You may not post new threads
- You may not post replies
- You may not post attachments
- You may not edit your posts
-
Forum Rules
Bookmarks