Online adult dating websites are growing exponentially in popularity and profitability. Statistics show that this online industry is changing perceptions and dynamics within social norms regarding dating and relationships amongst adults. If your business is in this lucrative sector, the first and most pressing need for the smooth operation of your business is the need for an adult merchant account. However, finding a merchant account for your business can be an arduous and difficult task as you will require a high-risk merchant account. If you are asking yourself why you need a high-risk adult merchant account here are three reasons your business is considered high-risk:
1) Chargebacks – The financial truth of adult online dating websites is that there is a much higher probability of chargebacks being filed by customers and succeeding, hurting the business and merchant account provider. The nature of the adult online dating industry leads to high quantities of chargebacks. This is the most critical factor for conventional banks when they consider an application for such a high-risk business. Chargebacks hurt the bank and are a risk they can avoid in normal merchant accounts, mandating adult online dating businesses need a high-risk adult merchant account alternative to normal merchant accounts.
2) Business Plan Challenges – Adult dating sites are springing up around the internet at an ever-growing rate. With a plethora of options and businesses available, the struggle to elevate your business to a stable and sustainable level of operation can be a challenging proposition for any entrepreneur. Establishing a niche and client base quickly through effective marketing and website mechanics will determine the survivability of your business. These factors are hard to forecast for credit payment providers, lending to the high-risk nature of adult dating websites.
3) ‘Adult’ Perception – The third reason you will need an adult merchant account is based solely on perception. Conventional banks will parallel the perception of ‘adult dating websites in the way that they categorize marijuana dispensaries. Regardless of your website’s niche, adult dating websites carry an association with escort services which can become dangerous legal risks as no business wants to be associated with any illegal investigation. This perception, fair or not, causes banks to categorically label any ‘adult’ dating website as a risky proposition.
If you need an adult merchant account for your online dating website, you will find yourself in the position of acquiring a high-risk merchant account. Between chargebacks, business challenges, and perceptions about the industry banks will consider your business too risky to open a merchant account leaving you to research alternative solutions online or offshore. As always, be thorough and meticulous in your assessment of online merchant accounts as there is little to no standardization or regulation protecting your business. With due process and research, you can find an adult merchant account to foster the growth and development of your adult dating website.
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