Verotel jumps on Bitcoin bandwagon for porn purveyors

Summary:The internet payment service for so-called "high-risk" merchants is now accepting Bitcoin payments from people who want to purchase adult entertainment anonymously.

Verotel, the Dutch internet payment service provider for adult entertainment webmasters and other high-risk merchants, is now accepting Bitcoin payments through BitPay.

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The digital currency has already gone mainstream so, of course, it makes a ton of sense as a payment option for folks looking to discreetly purchase adult entertainment. Earlier this week, Overstock.com staked its claim as the first online retailer to embrace the peer-to-peer payment system.

Company officials were quick to point out that all of the content offered by these adult entertainment merchants will be screened exactly as it is for credit card transactions to weed out garden-variety scams, fraud and illegal content.

The Bitcoin payment option is in beta right now for a handful of merchants but will be rolled out to all Verotel partners on March 15.

"No credit card needed to access adult content online is a no-brainer," noted Jason Collins, Verotel's VP of business development. "There is no credit card statement and there are no disputed charges by the spouse of the cardholder. An ideal world for any adult entertainment consumer."

It's also a pretty good deal for merchants that aren't especially keen on the credit card industry's interchange fees as well as the discount rates of affiliated banks. Because banks aren't in the mix with Bitcoin, Verotel only takes a flat fee of 1 percent of all Bitcoin transactions.

Verotel officials said payments are scheduled weekly and are payable in US dollars, euros or British pounds. However, the extremely volatile exchange rate for Bitcoin is keeping Verotel from using it as a payout currency for now.

Instead, all Bitcoin transactions are converted into each individual merchant's currency at the time of the transaction.

Topics: E-Commerce, Privacy, Security

About

Larry Barrett is a freelance journalist and blogger who has covered the information technology and business sectors for more than 15 years. Most recently, he served as the online news editor for 1105 Media's Office Technology Group and as the online managing editor for SourceMedia's Investment Advisory Group publications Financial Pl... Full Bio

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