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Adult Merchant

Accounts, Credit Card

Processing, and How

They Work

ne of the biggest paradoxes of the adult payments gateway is essential for obtaining not have disputes and require them to return
Oindustry is that even though it deals in credit card payments; it’s impossible to collect money. Logistically, it is complicated for the
the most salacious of transactions, it still has the money without them. However, banks are bank, and it also means they lose out on money
to deal with common business problems and often choosy about exactly who they approve from a transaction.
concerns. For example, processing payments for their merchant accounts. This is because
from customers is crucial for all industries, so of the risks mentioned earlier: if something The adult industry is not the only one to be
it’s no surprise that it is important in the adult goes wrong, the bank is at least partially on placed in the high-risk category. The gambling
industry as well. However, the adult industry the hook. industry enjoys the same notoriety, and for
does face some unique challenges and hurdles
essentially similar reasons. The good news
when it comes to running a merchant account As a result of that, banks that offer merchant
is that there is a whole sector of merchant
and processing credit card payments. In this accounts tend to break down their applicants
account and payments processing providers
article, we’ll talk about these issues and how into different categories based on risk. The
that specialize in the high-risk industries. The
you can overcome them. higher the risk, the more likely the bank expects
bad news is that they tend to charge higher
to have problems and disputes. Unfortunately,
fees, and many of them are scams, making it
Let’s start with some background on what the adult industry falls into the highest risk
hard to know what providers you can trust.
a merchant account is and how that interacts category for almost every bank that offers
with customer credit cards. A merchant account merchant accounts and payment processing. You will need to do thorough research before
is a bank account set up to receive payments. There are two main reasons for this: legality trying any provider. Read about them online
It is the intermediate step between the credit and the customers. The legality issue is a little and fnd out everything you can about them
or debit card that the customer used and the complicated. Depending on exactly where before you even consider applying. Many scam
business account of the company. A merchant you are working, the adult industry’s good sites will have poor websites, lack reviews, or
account comes with a contract between the and services are not necessarily illegal to appear unprofessional. The higher rates are
business and the bank that specifes the terms own or consume, but they could be illegal to harder to avoid than the scams. It makes sense
and conditions that govern use of the account. produce. This clouds the whole industry in a if you think about it- the bank is charging you
This is necessary because the bank running hazy ambiguity of legal gray areas and a lack a higher rate to make up for the increased risk.
the merchant account has to take on some of clarity. The adult industry isn’t the worst That doesn’t change the fact that you will likely
of the risk associated with the account, like off-- marijuana growers have an even bigger pay more for the same services compared to,
facilitating paying back customers who were problem. For them, their product is sometimes say, a person who knits quilts and sells them
fraud victims or providing the funds for those illegal according to state governments,
online. A really good provider can give you
who asked for a chargeback. but always illegal according to the federal
some extras to make up for it, though, like
government. This confict means no bank is
design tips for your site to help boost revenue.
The system and software that checks whether willing to work with the marijuana industry
Ask if there are any of these extra services at
or not the customer has the funds for a and they must use cash for much of their
any provider willing to serve you. It can’t hurt
transaction and then receives the money into accounting. At least in the adult industry there
and you might get something out of it.
the merchant account is the payments gateway. are options.
Usually, the payments gateway and the
As long as you plan to take payments via
merchant account are two parts of one bundle The other main risk is that the customers in
cards, you will need a merchant account and a
of service that a single company provides. This the adult industry are more likely to ask for
provider could be a bank or an organization chargebacks, make disputes, and otherwise do payments processor. Getting them is tougher
like PayPal or Square that works in payments things that annoy banks. Even if the industry in the adult industry than others, but still very
and transfers exclusively. was completely legal and aboveground, this possible. Just look out for scams, and compare
behavior would make it hard to get merchant prices and values to make sure you are not
Having both a merchant account and a accounts. Banks prefer customers who do being overcharged.

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