What is adult payment processing?
Adult payment processing is a specialized credit card processing solution used by businesses operating in the adult e-commerce industry. These accounts are utilized by adult entertainers, adult toy sellers, adult magazine stores, adult dating companies, cam sites, adult video stores, and other related businesses. These accounts help businesses process credit card payments while fully complying with industry and legal regulations.
Why is adult payment processing considered high-risk?
The adult industry is classified as high risk by acquiring banks for many reasons, including the risk of increased chargebacks, higher fraud rates, and stricter legal regulations. Traditional credit card processors reject or limit services for adult businesses; thus, specialized processors are crucial for such businesses.
What types of adult businesses can use payment processing services?
Adult payment processing can be used by various adult-oriented businesses, including, but not limited to, adult toy and novelty stores, adult content websites (subscription-based, VOD, pay-per-view), escort listing services, adult entertainment, video streaming, cam sites, dating websites, lingerie and adult apparel stores, private adult clubs, adult-themed conferences and ticket sales, and intimate health and wellness products.
Can I accept payments internationally?
Yes, with a good credit card processing solution, you can accept international transactions. With such a solution, merchants can accept payments from customers in various countries. The rates and fees may vary depending on the location of the buyers.
What happens if I get a high number of chargebacks?
When a merchant experiences excessive chargebacks, the account may be subject to high fees and even account termination. Our solutions come with proactive MID monitoring, which ensures that the chargeback ratio over the entire MID is proactively monitored. The moment the acquirer realizes that any MID is experiencing more than the average chargebacks, it initiates steps to monitor and restrict the MID to ensure the safety of other MIDs and the acquirer itself. Adult merchant processors use various tools, like chargeback alerts, fraud filters, and clear billing descriptors, to ensure accounts stay in good shape.
Is adult payment processing secure?
Yes, our adult payment processing solutions are highly secure, as they are powered by some of the finest acquiring banks and PSPs. Advanced features like full PCI compliance, encryption, and fraud prevention tools are included. For our acquiring partners, ensuring customer data security is a top priority. A good processor is safe for both the merchant and the customers.
What fees are involved in adult payment processing?
The fees can vary depending on the pricing structure of the processors and the risk level of the merchant. Common fees charged to an adult industry business include a setup fee (one-time), monthly account fees, transaction fees (percentage of sales + flat fee), chargeback fees, a rolling reserve (percentage held for a certain period), and refund fees. Each adult processor has different pricing, so it's important to choose wisely.
How long does it take to get approved for an adult merchant account?
Most accounts are approved within 3 to 7 business days. Some accounts take longer to be approved because their business model is unusual or very new, and underwriters take a long time to ensure that the model is legitimate and can be underwritten. Another reason for delay is that sometimes merchants do not send documents on time, which can delay the approval process.
Do I need a rolling reserve for my adult merchant account?
Yes, in some cases, a rolling reserve is required. This is a percentage of the sales and is generally held for 3 to 6 months. This amount is used by the processors to cover potential losses and chargeback costs.
Can I get daily payouts from my adult merchant account?
While daily payouts are rare, some providers may offer them. In general, most adult payment processors offer weekly payouts. The payout frequency also depends on the processing volume, chargeback rate, and other risk factors.