Adult Industry Payment Processing: What You Need to Know
The adult industry is huge and diverse. We’re talking about everything from adult content creators and cam sites to toy retailers and dating apps. However, when it comes to processing payments, these businesses face some challenges.
If you’re part of this sector or thinking about joining it, you should know about high-risk payment processing for the adult industry. Don’t worry, we’ve got you covered. Let’s break it down in simple terms. Read out to find out more!
What’s High-Risk Payment Processing for the Adult Industry, Anyway?
High risk payment processing is a fancy way of saying that some businesses are seen as riskier than others, and banks and payment processors worry about working with them.
The adult market falls into this category, along with things like online gambling or certain types of travel businesses.
But why is the adult industry considered high-risk? There are a few reasons:
- Chargebacks: This is when a customer disputes a charge on their credit card. The adult industry tends to see more of these.
- Legal matters: Laws around adult content can be tricky and vary from place to place.
- Reputation: Some banks and processors worry about being associated with adult entertainment businesses.
- Fraud: Unfortunately, the adult industry can be a target for fraudsters.
Getting Started with Adult Merchant Account
So, you’ve got an adult business and you need to process payments. What now? You’ll need to set up a specialized merchant account. It is like a special bank account that lets you accept credit card payments.
Getting one of these accounts isn’t always easy. You’ll need to provide a set of documents and go through a process called underwriting. This is where the provider checks out your business to make sure it’s legit.
One big tip: always be honest with potential processors. If they find out later that you weren’t upfront about your business, they might cancel your account.
The Cost of Being High-Risk
High-risk processing usually costs more than regular processing. You will probably notice the following:
- Higher fees on each transaction.
- Something called a “rolling reserve,” where the processor holds onto some of your money to safeguard against chargebacks.
- Extra fees, especially if you have one too many chargebacks.
Protecting Yourself and Your Business
Don’t get discouraged! There is a reason why the adult entertainment industry is so huge, it is because it’s profitable.
There are things you can do to make life easier (and cheaper) when it comes to payment processing:
- Use strong customer authentication: Make sure your customers are who they say they are.
- Be clear about who you are when billing customers: When the charge shows up on a customer’s credit card statement, make sure they can recognize your company.
- Provide awesome customer service: Happy customers are less likely to file chargebacks.
- Use chargeback prevention tools: There are services out there that can help you deal with chargebacks.
Staying on the Right Side of the Law
The adult industry has to deal with a lot of rules and regulations. Some key things to keep in mind:
- Age verification: You need to make sure your customers are adults.
- Content restrictions: Different places have different rules about what kind of content is allowed.
- Privacy laws: You need to protect your customers’ personal information.
- Anti-money laundering rules: It’s a good idea to keep records of your transactions and report suspicious activity.
Other Ways to Get Paid
Credit cards aren’t the only game in town. Some adult businesses are exploring other payment methods:
- Cryptocurrencies like Bitcoin
- E-wallets like PayPal (though be careful, as PayPal has restrictions on adult content)
- Bank transfers
These methods can sometimes be even more secure, cheaper or easier to set up.
Choosing Your Adult Payment Processor
When you’re ready to pick a payment processor, do your homework. Here are some things to consider:
- Fees: How much will they charge you?
- Support: Will they be there to help when you need it?
- Integration: How easy is it to add their system to your website or app?
Don’t be afraid to ask questions. A good processor should be happy to explain how everything works.
And watch out for any red flags. If a processor promises rates that seem too good to be true or pressures you to sign up right away, be cautious.
Why Electronic Transfer Inc. Is the Best Payment Processor for Your Business
Electronic Transfer Inc. is a second-generation high-risk payment processing provider that serves businesses considered risky. We understand the regulations, and issues, and how to handle them to make life easier for our partners. No wonder we’ve maintained our stellar reputation for over 30 years.
Additionally, ETI offers the best prices and provides real engaged support, unlike the usual faceless customer support. Most importantly, we have perfected high-tech solutions that integrate seamlessly with your online platform.
Wrap Up
The adult industry payment processing might be considered high risk, but with the right knowledge and approach, you can navigate the world of payments like a pro.
Keep learning, stay adaptable, and don’t be afraid to ask for help when you need it. Remember, Electronic Transfer Inc. is just a call away. Good luck out there!