With all the social stigmas attached to the adult products & services, it still is one of the fastest -growing and the most lucrative industry in the market today. All thanks to the internet and the anonymous identity it offers.
While it is true that the adult industry continues to be mired in controversy but that does not make it any less legal than a random retail store. Merchants selling adult products and services, as long as they are following along the laws, are operating a legal business.
Unfortunately, a lot of banks and credit card processors treat these businesses unfairly and refuse to offer them any services.
There have been numerous cases reported of bank accounts of adult performers or bloggers been shut down on the grounds of ‘morals’ or simply publishing sexual content.
Why is it so difficult to obtain merchant services for adult businesses?
-The most obvious reason for financial institutions shunning adult merchants is due to nature of their business, the products or services they sell.
-Banks also consider taking adult businesses onboard might cause reputation damage and turn away shareholders or business partners.
-Many of the providers refrain from accepting adult merchants because of their banking partners restricts adult related services and products.
-Because the many controversies and grey areas that the adult business falls into, providers simply do not want to take a risk.
– Because customers want to keep the purchase anonymous, they claim to never have visited the website and refuse to have made the transaction. This makes adult businesses vulnerable to a high number of charge back risks.
-Since majority merchants establish online operations, ‘card-not-present’ transactions take place making providers wary with no way to verify the card with the one making the purchase.
-Offering subscription based services to customers also causes a high chargeback ratio.
-Processing high volume transactions also makes it difficult to obtain a merchant account.
Considering online payment processors like PayPal for your business?
Think again! PayPal accepts such businesses during the initial process but once the nature of business is revealed during the underwriting process, which takes up to 6 months, the online payment process will instantly shut down the account and freeze your funds. This essentially means you cannot process payments or take out your existing funds.
Other services like Strip and Square have also chosen to shut down any adult related businesses.
Adult Merchant Account & Credit Card Processing Services
No matter the type of products and services sold, as long as they are law-abiding Adult merchants have the same right to accept and process credit card as any other business out there.
So while it may be challenging and riddled with roadblocks, obtaining an Adult Merchant Account is still possible.
Merchants will encounter numerous processors willing to take on your business but one should be careful since these processors also usually charge exorbitant fees for the services offered.
Hence, it becomes extremely important for adult merchants to do a bit of research and ask around fellow merchants before choosing the right merchant account provider for your business.
Merchant Account Solutions for all types of Adult-Related Businesses:
- Adult toys and novelties
- Adult massage businesses
- Escort services
- Online dating websites
- Adult content membership websites
- Online lingerie and adult clothing shops
- Strip clubs
- Streaming videos
- Gentlemen’s clubs
As long as merchant is legal & honest about its business, there are multiple reputed merchant account providers willing to offering their services.