The credit card processing of online adult businesses is not offered by all merchant services. The reason is that online adult businesses are considered high risk businesses in the E-commerce Industry. Therefore, you have no choice but to go for high risk merchant services for credit card processing.
Following are some other factors that are associated with adult businesses:
• Controversial content
• Legal age restrictions
• Reputation concerns
A great challenge that all owners of new adult entertainment businesses face is finding a good credit card processing solution. Many banks are reluctant to accept adult merchants for a variety of reasons. The fee of adult merchant accounts is mostly higher than others. Therefore, it is a challenge to find an adult merchant account provider which is reliable and affordable. However, there are providers who offer reliable services at reasonable price, but they have strict conditions. You must meet their conditions to open an adult merchant account. Such providers have offshore banking partners; otherwise, they cannot offer you affordable rates.
Once you find the right merchant account provider for your online adult business, you should thoroughly check all the details. A good provider would cover all types of adult entertainment which includes:
• Online dating
• Adult toys
• Escorts
• Gentlemen’s clubs
• Streaming videos
To open an adult merchant account, you must directly contact the merchant account manager. He will explain to you the different merchant account solutions that are suitable for different categories of adult merchants.
The different types of adult merchant accounts are:
• Domestic adult merchant accounts
• Offshore startup adult merchant accounts
• Offshore adult merchant accounts with payment processing history
• Virtual check solutions for adult merchants
The process of acquiring a domestic adult merchant account involves six steps. You begin with submitting the application for the merchant account. The provider will ask you to provide a valid identification. After that you will have to provide a business bank letter or a voided check. Then the provider will ask you for the business banking statements. In most cases, the banking statement of at least three months is acceptable. The statement must clearly mention total sales, returns, refunds, chargebacks, and company name. The next step involves submitting documents of incorporation. The approval of adult merchant account will take up to two weeks.
Acquiring an offshore startup adult merchant account is relatively easy. The merchant account provider will ask you to submit business banking statements of three months. Sometimes a business bank letter is also acceptable. In case, you do not have business banking statements then you will be asked to submit personal banking statements of three months. The time required for the approval of your merchant account can vary from five business days to two weeks.
The requirements of offshore adult merchant accounts with payment processing history are a little different. You will be asked to submit six months of payment processing statements. The statements must indicate details like your company name, total sales, returns, refunds, and chargebacks. You will also need to provide three months of business banking statements. The approval time varies from five business days to two weeks.
Virtual check solutions for adult merchants involve five steps. First, you complete and submit the application. The merchant account provider will ask you for the valid owner identification and business bank letter. You can also submit voided check if there is no business bank letter. The merchant will also ask you for the articles of association. The approval of the account takes up to three business days.
The fees of adult merchant account depend on different factors. They include projected sales volume, type of industry, and merchant’s processing history. Although merchant accounts are of different types, but their fees include:
• Registration fee
• Account fee
• Discount rate
• Monthly statement fee
• Refund fee
• Transaction fee
• Chargeback fee
A big problem associated with online adult businesses is the chargeback. Very often customers dispute that they did not purchased the adult content on their credit card. A good merchant account provider is the one that will help you prevent chargebacks.
There are different ways that can help you prevent chargebacks. A chargeback occurs when a customer does not recognize or remembers a purchase on his credit card statement. You should use a clear billing descriptor that has information like your company’s name, transaction date, and contact number. Make it a first order of your online adult business. The next thing you can do is to have an effective communication with your customers. When a transaction is completed, your E-commerce website should send an automatic email receipt to the customer.
Whenever a dispute takes place, offer a refund to the customer. As compared to chargeback, a refund is a better option for your online business. You always have the option to use check solutions or ACH payment processing if you are facing excessive chargebacks.
Obtaining adult merchant accounts is very difficult in the US because majority of American banks and financial services are reluctant to work with the adult industry. The main reason is involvement of controversial content and legal age restrictions. It is why owners of adult businesses are unable to accept credit cards. The other option for you as an owner of online adult business is to reach out an offshore bank, but the problem is the high cost associated with it.
Owners of online adult businesses struggle with finding merchant account providers who offer payment solutions for them. As an owner of an adult business, you need the best, cheapest and most reliable credit card processing solution because it will enable you to accept payments through credit cards and increase your business revenue. Providers of adult merchant accounts board merchants from all over the world. It is why people believe that merchants of adult entertainment industry should be given the right to process credit card payments. However, almost all solution providers are unable to work with businesses that are based in conflict hit countries. The pricing of individual merchants varies due to different reasons; however, most solution providers have made application process free.

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