If you have a business that is involved in the adult sector then you are a high-risk business; even a dating agency is a high-risk business and would need to apply for an adult dating merchant account to allow your customer’s to pay using their credit and debit cards.
However, it is not just dating websites that are adult sites. There are numerous other types of adult sites all having the same high-risk label attached, purely because the businesses have a high percentage of fraudulent transactions.
The niche for adult sites is growing, especially services that are online. Most transactions on the internet are with ‘card not present’ and this opens up the business as a high risk with the potential of fraud.
Merchant account providers who deal in high risk still require a set percentage of chargebacks; these are when a customer challenges a charge on their account and disputes using the service. The level of chargebacks should not go over 3%, if they are higher than this you might find that the rates charged per transaction might be high.
If you are looking for a business sector that is growing then you will not find an area with so much growth compared to some other sectors, there are many potential opportunities in the adult sector that are seeing growth. The business opportunities vary depending on what you are looking to do, from dating sites, which take a lot of work before you see much return, to online shops that are relatively simple and straightforward allowing you to see a return relatively quickly on your investment.
Therefore, even though the adult business sector is a high-risk area and you will need to consider a high-risk merchant account provider, the opportunities that are available for an individual to make money are there, providing they are able to put in the time and commitment to the business venture.