Controversial yet highly-profitable, that’s how you describe the adult entertainment industry; an industry that is currently worth a $100 billion.
Discretion and convenience while paying for services have been a long-standing demand for customers of the adult entertainment market. However, many merchants have trouble obtaining secure merchant account services to accept credit cards. It is nearly impossible for an adult business to approach a traditional merchant bank or payment processor since these types of businesses are largely on the restricted or prohibited merchant list.
Why are you denied an adult merchant account for your strip club or gentlemen’s club business?
Simply the nature of your business is enough for banks and processors to quickly turn you down. Gentlemen’s clubs, strip clubs, adult entertainment clubs, exotic dance clubs, legal brothels, etc – if you are operating one of the businesses mentioned then you automatically classify as a ‘high-risk merchant’.
Frauds, scams and identity theft are common in this industry. Fraudulent users, Recurring subscriptions, fronting illegal activities, CNP transactions, etc make adult businesses a hotbed of fraud.
Higher than average chargebacks from customers also make this business risky for banks. Also, banks consider being associated with adult entertainment businesses as a reputational risk or damage to their brand.
Processors like Stripe, Paypal, Square also avoid such businesses for the same reasons.
At times, merchants end up paying high application fees only to be rejected. The constant rejection sometimes forces businesses to accept processors that charge higher fees and rates, often settling with poor services as well.
How to improve your chances of getting approved for an Adult Merchant Account?
- Make sure you take care of any outstanding credits and pay off your debts. A positive credit history increases your chances considerably.
- Save up! Your merchant account provider may open a reserve account on your behalf for security reasons in case of any future financial emergency. This is for your security.
- Remember you are operating a risky business so don’t be surprised if you find yourself paying higher than average processing fees. But also be careful and ensure that there no hidden costs and you are not being duped with extravagant charges.
- Do not try and pass off your business as something else other than what it is. Be completely honest about the services offered or products sold. Mention if your previous merchant account had been shut down or if you had gone bankrupt. Honesty ensures a long and positive relationship with the provider.
- Be ready with legal and valid documents that give proof of your legitimacy at running an adult business. If you are in compliance with laws and regulations, there should be no reason to stop you from obtaining an adult merchant account.
Find reliable Adult Merchant Account solutions for Gentlemen’s Club/Strip Club businesses
With many of gentlemen’s clubs, strip clubs, exotic dance clubs and other such adjacent adult entertainment businesses running online, customers need a secure and easier way to make online payments for reservations and bookings.
Has your merchant account been shut down or been looking for merchant account solutions for your adult business? There are plenty of reliable and secure adult merchant account providers that understand the complexity of this industry and offer fair prices and tools to leverage your business.
As a high-risk merchant, you need to do pay due diligence and consider not only an adult merchant solution that provides the best rates or offers but the one that is the most dependable in the long run. After all, you do not want your credit card processing services to stop abruptly and your accounts to be frozen shut.
Do your homework, look at options and find an experienced Adult Merchant Account solution with top features, good quality services, and affordable rates.