Searching for an Adult merchant account to accept credit cards?
The legitimacy of a market.
At a time when a sex toy can be worn like a necklace, it's safe to say sexual health and personal pleasure have gained greater public acceptance. There’s no longer the same seedy reputation and stigma surrounding the industry there once was. Sexual health and sexual pleasure are being viewed more these days as a human right.
Young entrepreneurs, many of them women, have gone to great effort to normalize sex, pleasure, and sexual heath. Innovative companies are making physical health and safety as highly prioritized as the pleasure itself. Companies are creating thoughtful products using safe, high-quality materials. And because of it, there has been growing acceptance of adult related content and products with younger generations.
No longer looked at as toys to be snickered about from behind closed doors. Today’s sex toys are truly innovative tech devices. They hold patents for their technological innovations and they win coveted tech awards.
The adult industry also contributes significantly to the economy. In fact, the sex toy sector alone is expected to reach $52.7 billion by 2026, according to recent forecasts.
Why are adult entertainment and toys considered to be high risk for merchant accounts?
However, despite all of these positive changes, banks still consider adult industry businesses as high-risk. There are many things that contribute to the level of risk a business carries. Banks must take into account rules and regulations surrounding the industry. They also consider the financial liability due to high customer chargeback incidence and fraud levels And of course, they have to take into consideration public perception.
The adult industry is plagued with all of these concerns. As with most other high-risk businesses, additional restrictions and regulations are placed on adult industry businesses. This makes serving the industry more complicated and a greater liability.
Banks have a fiduciary duty to satisfy stakeholders and clientele. Because of this, they also must consider the risk of brand damage if they choose to serve merchants within the adult industry.
Adult businesses are also victims of very high chargebacks ratios. This stems from a couple of issues. First, they don't, and really just can't, have lenient return policies. This drives unsatisfied customers to file a chargeback to get their money back for a product they're not happy with.
The other unfortunate issue that leads to high chargebacks for adult businesses is stigma. While stigmas are lifting, there are still customers who want to hide their purchases from others. It is not uncommon for a person to file a chargeback under the guise of a “fraudulent purchase” when their partner finds a charge on their card statement from a adult site. Sometimes it's just easier to pretend you were victimized that it is to admit to your partner you bought a sex toy.
Fraudulent activity runs rampant in the adult sector. Adult industry businesses seem to be a magnet for fraudsters. And with Visa’s newly tightened fraud and chargeback-to-sales ratios, it's more difficult than ever to remain within the thresholds.
Adult industry businesses need a mature and experienced adult merchant account provider.
You need a high-risk payment provider specifically built to serve these types of industries dependably. Many of the well-known national financial institutions, such as Wells Fargo, won’t underwrite most adult merchant types.
Square, PayPal and other popular aggregators are not equipped to serve high-risk businesses such as those in the adult industry. In fact, they don't allow adult business types.
If you open a merchant account with one of these solutions, it will only be a matter of time until they discover you and shut down your account. They’ll freeze your funds and leave you with no way to accept payments and scrambling for a new adult merchant account.
The reason this happens to high-risk businesses is because there is no detailed underwriting done at the time of application. Businesses are granted a merchant account on the spot with a more detailed underwriting review done in the months following. Unfortunately, once they realize your business is a prohibited business type, they have no choice but to close the merchant account.
Does this high-risk designation affect your ability to get a merchant account? Some would say it does.
But we don’t think it should affect your ability to get a merchant account. Instead, high-risk designation dictates WHO you should get a high-risk merchant account from.
How can B.I.G. Help with your Adult Industry Merchant Account to Accept Credit Cards?
Finding a dependable merchant account for the adult industry can be a challenge. If you open a merchant account with someone who doesn't understand the challenges of the industry, it will affect the dependability of your account. If you open an adult merchant account with an inexperienced provider it could get your merchant account shut down. If you open a merchant account with someone looking to take advantage of your high-risk designation, it won't be financially sustainable.
Merchants in the adult sector must find a credit card processor that has underwriting guidelines specifically for adult businesses. It takes a merchant account provider with a significant history with high risk businesses. It also takes a provider who has forged strong relationships with acquiring banks and processors equipped to work with the industry.
Different types of adult businesses have different processing needs. They also have varying levels of risk they carry. Processing for retail locations is different from eCommerce stores and other adult sites. Experienced high-risk adult merchant account providers understand these nuances.
Successful adult industry business owners turn to BIG for dependable payment processing needs.
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We have the experience it takes to provide comprehensive solutions to high risk and hard to place vertices. In this industry, no two businesses are alike. That is why we’ve built a comprehensive suite of adult payment solutions allowing us to cater a payments solution to your specific needs.
While today’s adult industry businesses need to accept credit card payments, they also must cater to the needs of all their clientele. Being able to accept alternative payment solutions helps businesses remain considerate and inclusive of all levels of clientele. E-Check, ACH processing, crypto currency, and even Cashless ATM or PIN Debit only solutions are great compliments to your adult credit card merchant account.
We’ve partnered with the best high-risk-capable acquiring banks to bring fair and competitive adult merchant account rates. And we continue to serve our clients with personalized customer service from dedicated account reps.
Business owners in the adult sector are innovative and savvy entrepreneurs. We believe you deserve to be treated with honesty and integrity. Just like we treat all our clientele. Just the way you treat all your clientele.
At Bankcard International Group, we serve a multitude of adult industry merchant types:
- Adult toy/sex toys
- Adult magazine and bookstores
- Escort services
- Online dating sites
- Pornography sites
- Videos sites
- Chat sites
- Membership and subscription sites
- Gentlemen's Clubs
This is just an example of the types of adult merchant accounts we can supply. If your business type isn’t listed here, that doesn't mean we can't get you a reliable adult merchant account. Our partners are well-rounded so you can rest assured that we have the most appropriate credit card processing solution for your business needs.
100% PCI compliant and secure virtual terminals and gateways.
Because adult businesses are particularly prone to high chargeback numbers and fraud, risk mitigation strategies must be top priority. A sustainable adult merchant account is one that couples risk mitigation strategies with a dependable provider for a truly comprehensive payment solution.
Contact
1-800-895-1580
