Looking for an Adult Merchant Account?

Table of Content

• An Examination of the Adult Industry
• Who was the pioneer of the adult entertainment industry?
• Do you want to learn more about Adult Merchant Services Accounts?
• Why is a high-risk adult merchant account considered?
• Is it true that being high risk reduces your chances of being approved for a merchant account?
• How to Avoid Adult Industry Frauds and Chargebacks
• The Importance of the 2257 Factor in Your Adult Business
• What steps must you take to become an adult Merchant Account Holder?
• Where Can You Find the Best Way to Get Access to an Adult Payment Gateway?

For online services, customers can use their credit and debit cards up to once per day. If you work in a “high-risk industry”, such as the adult sector, being an adult Merchant account holder could be a problem. Credit card processing can be frustrating, from dealing with unwelcome fees to denial of services by industry leaders like Stripe and PayPal to the fact that you may have to pay hidden fees

This blog outlines the reasons why banks and payment processors are taking this high-risk decision. First, stop blaming the industry for making it difficult to acquire a payment gateway for adult services. Next, look into other options for adult entertainment industry merchants. A merchant services company is available to assist businesses in high-risk sectors and help you develop your adult business.

Introduction to the online adult business

What is the “adult industry”? The adult industry was created by businesses that provide sex services or products to clients, directly or indirectly. Products that include toys, costumes, or other equipment. Simultaneously services offered in the adult industry include, among other things, stripping, call girls services, and cam girl services. The adult market has grown exponentially since the advent of the internet. This allows potential customers to remain anonymous and gives them a sense of anonymity.

Who was the pioneer of the adult entertainment industry?

Adult entertainment does not just include online pornography. There are many types of products and services that make up the industry, including:

• Dating and Escort Services

• Pornographic Photography

• Webcam communication platforms

• Chat with phone operators
• Gentlemen’s clubs

• Sex toys and novelty

• Pornographic publications
• Lingerie stores

The internet is also supporting the adult entertainment industry. This category includes places like strip clubs, massage parlors, and adult bookstores. While some of these businesses can be considered adult-oriented while others are more casual. Some are considered high-risk by banks, while others are not. This is the root of the problem adult businesses face when seeking merchant services support.

The intruders chased the girl in the house and threatened her when she hid from them, according to the PSNI Limavady Facebook page.

“She came out petrified with her Piggy Bank, HER PIGGY BANK! hoping that the men would take it and leave her dad alone,” one outraged officer wrote. especially in capital projects and the suppliers and consultants that work for you know the value of a customer like that. As a consultant executing two projects for a large multinational, I realise how very difficult it sometimes can be on the receiving.

Do you want to learn more about Adult Merchant Services Accounts?

An Adult merchant account is required for your adult business to be able to process debit and credit card payments. Merchant accounts act as a mediator between the customer’s bank account, and the merchant’s business bank account. These accounts are often linked to your online shopping cart through an online payment gateway. To purchase your products or services, the customer will need to enter their card information. You must have the support of a bank to access cardholder data and your account must be secure.

Many business owners contact a payment processor to get a merchant account. This will combine them with a bank. Adult businesses might feel that it is difficult to establish this connection. This is due to your business being high-risk to multiple banks. Merchant types approved by established banks can be extremely selective. Many adult businesses don’t cut it.

You may have to search longer for merchant services support because of the character and financial risks that your adult business faces.

Why is a high-risk adult merchant account considered?

A high-risk business arrangement for payment service providers is available to adult business owners who need credit card processing. The industry is plagued by fraud and chargebacks. Few banks and payment service companies will refuse to work with the business to avoid reputational risk.

Adult entertainment: Risk factors and how to reduce them

Unfortunately, the high-risk industry for adult workers is multi-tiered and requires multiple answers. Understanding the risks to your business is the first step.

Some frauds are obvious like using the same card information on multiple purchases within a short period of time. Other times it is not. It is crucial to keep your business running by using eCommerce and credit card fraud prevention amazing techniques.

Consumers don’t want to keep a record of the adult services they have used, so they make sure it was authorized.To get their cake and eat it, some people resort to the fraud blame game. After using the product or service, the purchaser wants his money back and contests the charge.

Another reason for chargebacks is the adult merchant service account setup. Many adult businesses are listed on bank statements as alternate identities or as individuals. Although this is a good thing for adult-related businesses, it can lead to some problems, like misleading customers. It is possible to protect your account from chargebacks on your website.

This is also true for many adult subscription-based businesses. If people forget to unsubscribe to the recurring payments, they can then request a chargeback to recover some of their money. To avoid this chargeback situation, it is easy to remind customers about upcoming recurring payments.

Companies in the adult entertainment sector have one expectation: to be able to see a bank institution or credit card processing company that is eager to assist them.

and also keep an inventory of government-issued identification photos for every performer. Other laws could include the complete prohibition of buying adult-oriented toys in certain states.These laws can restrict your customer base that could, according to potential payment processors, limit your ability to market to a huge, broad market.

Is it true that being high risk reduces your chances of being approved for a merchant account?

Merchant accounts encase all earnings for the duration of between 2 and seven days as transactions are processed, and then deposit the funds into your company’s bank account when processing is completed. The account holder on the merchant agreement links your business to your bank.

The merchant agreement emphasizes the significance of this relationship. Included in this contract is “compliance with the laws and regulations,” which brings on companies to enter the adult market difficulties. Even if you’re completely compliant to all laws and regulations certain banks may refuse to lend your business an account because it’s required to follow more regulations and laws than other companies, increasing the chances that it’ll eventually fail to become completely compliant. Setting up an adult-only merchant account isn’t the most difficult thing, however, you could face difficult moments and even situations when trying to get accepted. But, selecting the right payment service provider with whom you establish an adult merchant account can help you avoid the issue.

What can you do to improve your chances of getting approval?

Running a business in an adult sector puts you in a high-risk area. It’s a fact. However, there are steps you can take to increase your chances of being accepted to open the adult-only merchant account. This includes:

*Resecuring a satisfactory personal credit score and credit score

*Verify that you are authentic on your application since pumped-up numbers can cause uncertainty between the processing volume of your application and an adult account application.account application

*Including the MasterCard Alert to Restrict High-Risk Merchants shows businesses who have had their merchant accounts closed, and the reasons for the termination. Make sure you pay your taxes in a timely manner in full, since tax liens issued for late taxes could cause a denial of your application

How to Avoid Adult Industry Frauds and Chargebacks

The possibility of having chargebacks or fraud is one of the reasons that could cause your business to be refused the adult-only merchant account. Both of these are unpleasant circumstances that business owners must strive to avoid for the financial security of their company since chargebacks are a source of fees that could add up. Methods to avoid charges and fraud include:

Customers should be encouraged to create password-secured online profiles through your company

*Requiring that customers accept the terms of service on your website before making any purchases

*Utilizing the Address Verification System (AVS) to verify the addresses of shipping and billing addresses.

*Confirming a card verification value (CVV) is required for all CNP purchases made on your website

Utilizing IP Tracking to flag unusual purchases when the majority of your customers originate from a specific region or country.

Applying 3D secure technology with verification by three parties, for example, Verified by Visa

The authorization holds should be held for two days before shipping items or providing services, giving the card’s rightful or bank owner the opportunity to spot the possibility of fraud

There are a variety of ways for companies, including ones that are high-risk to protect themselves from chargebacks and fraudulent activities.

The Importance of the 2257 Factor in Your Adult Business

Compliance with regulations and rules is important to banks and other institutions as they don’t want to risk putting their business in a position of reputational, financial or even criminal trouble by operating businesses that break the law. The fact that the adult business is required to adhere to a variety of regulations more than other industries, simply means there is a greater chance of failure to comply. It is crucial to comply with all laws that pertain to the adult market and not just to obtain the adult-only merchant bank account but also to establish the adult market as law-abiding.

However, the 18 U.S.C. 2257 is required to be practiced during the day-to-day routine activities of your adult company when you hire actors of any kind. Performers range from strippers cameras to operators for sex. 2257 states that all producers of adult-oriented content must possess and keep a record of government-issued photo identification that proves that the person performing is at least 18 years old. The record must be kept for 7 years at a minimum. If your business liquidates and dissolves, you have to keep the record for five years after the dissolution.

What steps must you take to become an adult Merchant Account Holder?

While the majority of payment service providers may not deal with businesses that are not adults Some of them are experts with the riskiest credit card processing options. You can apply for an application by ensuring that the credit rating of your company is expensive as it is possible to be. Pay off any outstanding debts and ensure that your current report is in line with this action. If you’re trying to get another account with a merchant, you must prepare your explanation of why the first account was closed.

Service providers that provide payment and who work with clients who are high-risk can request an amount of money to deposit. The deposit acts as a reserve for the account and provides them with a pool of cash that they can use to pay back a refund in the event your company ever finds itself in a situation where you’re not able to make the request with the profits. Be aware that processing charges could be between 2 and 10 percent per transaction. The fee could decrease over time, as your company proves consistent and profitable, however, the criteria for a rate reduction are different with each payment service.

If asked to explain your business, be sincere and as descriptive as you can. Payment service providers are more inclined to conduct business with you if you’re aware of your business transactions and put in every effort to make them aware of the daily burdens you face.

When you decide to increase the number of fees you charge and describe and protect your company, you ensure that the payment service provider you choose to invest in your company established a secure, legal method to accept credit cards.

Everything You Must Include for an adult merchant account Checklist of the requirements

Before you sign up with the adult account through the payment service provider, make sure you do your own examination and ensure that you meet the essential prerequisites for applying. Here is a list of the basic requirements needed to open an adult account:

* Unlock a business bank account so that your merchant account will be able to transfer funds when the process is completed.

Prepare two years’ worth of financial records including profits and loss statements in addition to balance sheets, and tax documents.

*Obtain all business permits deemed required by the federal, local, and state governments.

*Make sure that you’re PCI-compliant and comply with any laws and regulations that are specific to the adult sector.

Complete the application in a truthful manner because using lies about your business’s nature or size that you run is an utterly foolproof way to get rejected

Where Can You Find the Best Way to Get Access to an Adult Payment Gateway?

While a lot of payment service providers are unsure whether they can work with businesses of all ages, however, a lot of them have a solid understanding of it. Payment processors for adults like Paympire Solutions are skilled at offering services to high-risk customers. The reason you require such a service is that they have the bank relationships you need. Merchant service providers that specialize in high-risk enterprises have flexible underwriting options and a variety of connections. You can get your adult account with a merchant might be difficult however it’s not difficult.