Suit complicates First Data's move to cut porn tie

[R. A. Hettinga]

<http://www.denverpost.com/Stories/0,1413,36~33~2438413,00.html>


 DenverPost.com - BUSINESS

Friday, October 1, 2004
 Denver, CO


 Article Published: Friday, October 01, 2004

 Suit complicates First Data's move to cut porn tie

By Aldo Svaldi
 Denver Post Staff Writer

 First Data Corp. says it has sworn off porn, but a lawsuit could
complicate the Greenwood Village company's efforts to cut its ties to the
lucrative industry.

 First Data stopped payment processing for Internet Billing Co. after its
contract with First Data expired Sept. 15. Internet Billing is a Florida
company that Forbes.com describes as one of the country's largest middlemen
between Internet porn sites and banks.

 "First Data regularly evaluates its lines of business to ensure they are a
good fit for the company," the company said in a statement. "We have
determined that processing payments of the adult entertainment marketplace
is inconsistent with our core values."

 Internet Billing, also known as iBill, filed a lawsuit two days later
against the company and asked a New York state court to force First Data to
work with it until it could switch to a new processor in November.



 The court denied iBill's request. Internet Billing did not respond to an
interview request.

 Penthouse International purchased the company in March for $23.5 million.

 First Data, which in the past has kept its involvement with the adult
entertainment industry quiet, said it had given iBill plenty of notice the
contract was ending.

 "First Data provided iBill with multiple notices that its contract would
not be extended after expiration," the company said.

 First Data has been terminating all of its contracts with adult
entertainment providers as they expire, a spokeswoman said.


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R. A. Hettinga <mailto: rah at ibuc.com>
The Internet Bearer Underwriting Corporation <http://www.ibuc.com/>
44 Farquhar Street, Boston, MA 02131 USA
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