Wolf is the CEO of 2000Charge, a billing company that specializes in providing adult Webmasters with international billing solutions. In addition to transaction credit card processing, 2000Charge offers European debit processing, phone billing solutions, Asian ATM payment processing, and online check processing.Wolf is the CEO of 2000Charge, a billing company that specializes in providing adult Webmasters with international billing solutions. In addition to transaction credit card processing, 2000Charge offers European debit processing, phone billing solutions, Asian ATM payment processing, and online check processing. This week YNOT News interviewed Wolf to find out more about 2000Charge and its services, and the advantages of alternative billing.

YNOT: Hey Wolf, thanks for taking the time to talk with us about 2000Charge and adult Web site billing solutions. Your time is truly appreciated. To get started, why don’t you tell us a little bit about yourself and your company, 2000Charge.

Wolf: 2000Charge was established in 1999 when it pioneered the European debit processing market, and since then has grown into offering the most comprehensive payment processing solutions.

Wolf: At 2000Charge, we offer Webmasters our advanced billing services. We allow them to expand their customer demographics and increase their sales dramatically from users around the globe. 2000Charge payment options enable Webmasters to increase their revenue potential by expanding their billing options and allowing them to take transactions outside the U.S.

YNOT: Can American Webmasters sign up for your alternative billing options?

Wolf: Yes! Absolutely. You don’t have to reside outside of USA to use our alternative billing services. Any Webmaster who would like to expand their market potential overseas can utilize our services for their Web sites.

YNOT: What are the advantages of alternative billing? Why should Webmasters care about alternative billing options when they can accept Visa and MasterCard on their Web sites?

Wolf: It couldn’t be a more ripe time in the industry for Webmasters to offer alternative payment options. With all the regulations put on the industry with traditional credit cards, it’s smart to offer alternative payment methods to your customers. In addition, solutions like 2000Charge allow webmasters to expand their business internationally with safe and reliable payment options.

YNOT: Can you give us an idea of the ratio between credit and debit purchases amongst Europeans? Do Europeans generally prefer to use debit cards or credit cards?

Wolf: I would say the ratio is about 70% debit cards and 30% credit cards in Europe. However, this ratio can vary greatly depending on each country. To answer your last question, if Europeans PERFER to pay with debit card. Well, I guess it can depend many on a host factors such as income level, demographics and products purchased, etc. It would be hard to answer that question without considering these variables first. However, I can say that in the USA we seem have a more of the “Buy Now Pay Later” mentality.

Wolf: By offering a European debit payment option for your business you are increasing your consumer base substantially [to include] users who don’t own a credit card or are reluctant to use it for online purchases.

YNOT: Of course even if credit cards aren’t as popular outside of the United States, American Webmasters can still use dialers to target the international market. Why should a Webmaster who already offers a dialer solution on his or her site consider adding debit card processing?

Wolf: Good Question, as I am asked this very question often from Webmasters. No doubt that dialers covers a larger base of countries. For instance, our European debit does not bill in countries like Estonia or Brazil. That is the very reason we launched our EU Dialer (www.eudialer.com).

Wolf: However, you cannot sell products like herbal supplements, sex toys or videos with a dialer solution. Dialers [are] great for non-tangible online services. For example, you can’t bill [an] $80 sex toy on your phone bill. That is where we, our European Direct Debit services, come in. Also another advantage to using debit cards is the ability to offer recurring billing.

YNOT: Adult site billing is a dynamic business, constantly in flux, constantly forced to evolve and adapt. A lot of Webmasters are concerned that Visa or MasterCard might someday pull the plug entirely on the adult entertainment business. Do you think that this is a realistic concern, or are Webmasters just being paranoid? Can alternative billing methods pick up the slack if Visa were to suddenly pull out of the game?

Wolf: That is the million dollar question, isn’t it. I can really only say that it is entirely possible that at some point Visa/MasterCard might make an executive decision to exit the adult entertainment marketplace entirely, as we saw this the case with American Express a couple of years ago. Although, I think it is more likely that the Associations will continue to apply pressure to the industry in the fashion they have been in an effort to make channels for obtaining merchant accounts narrow enough for them to monitor and control.

Wolf: As to the last question regarding alternative billing methods, it is my belief that regardless of the current state of alternative billing (not being widely accepted as traditional credit card sales methodologies) the adult entertainment industry will not crumble under the pressure of no longer being able to acquire Visa/MasterCard transactions. Much like the gaming industry before it, sales will continue in [the] same manner. Alternative payment billing methods like dialers, online checks and European debit cards are all good options to offer your customers for the fact that they [empower] Webmasters with various revenue streams.

YNOT: When processing debit transactions, as opposed to credit cards, are chargebacks and consumer fraud still big problems? How can one verify that a person entering a debit card’s information through a Web site sign-up form is truly authorized to use that card? From a security perspective, is there any difference between credit and debit transactions?

Wolf: Debit cards will be prone [to] some chargebacks and consumer fraud, as with credit cards and online checks. At 2000Charge, we offer a number of unique features that enable our merchants to cut their fraud to a minimum. For example, with our Korean Bank Cards we offer PIN-based security; the four-digit pin code end users are required to enter when they make a purchase, we are able to authorize them and eliminate the risk on online transaction for Webmasters.

Wolf: Over the years with our European debit cards we have several AVS systems integrated. For example, we are linked up [with the] European postal service so we can verify the mailing address that signs up with our European debit cards. In Europe, all people are required by law to register their address to the postal office.

Wolf: Another unique feature we will be rolling out soon is our phone verification product, Phone Q. Phone Q requires users to respond either by touch-tone or voice if they have recently purchased a product online. In our experience and data we have seen a dramatic reduction in chargeback when [we] added this feature.

Can you give us any idea what else to expect from 2004 in terms of billing? What changes are on the horizon, both for 2000Charge and for the Web site billing industry in general?

Wolf: We are working diligently to offer webmasters with the most secure and safe payment options possible. In 2004 expect to see more and more European countries added to our debit cards.

YNOT: Wolf, I truly appreciate your answers – it’s important for Webmasters to stay informed of their options. Thanks again, and best of luck both to you and to 2000Charge in the future!

To find out more about 2000Charge or to sign-up for processing services, either contact Wolf Kring by email at sales@2000charge.com, or visit the 2000Charge Web site at http://www.2000charge.com/.