Adult Merchant Processing – Securing A Payment Processor

Jun 08, 2022

Since the start of the pandemic, most people worldwide were forced to stay home to halt the spread of the virus. Most service-oriented, customer-facing industries suffered tremendously due to their brick-and-mortar businesses being shut down. 

One of the few industries that fared better was online media and entertainment services. One particular sector, online porn, experienced a dramatic surge in the number of customers and subscribers using these services during the stringent social-distancing period. Easier access to mobile phones has also helped the surge of users.

The Trouble With Adult Merchant Accounts

Online merchants looking to launch an online adult business would do well in this lucrative industry. But before you contact your local bank in order to open an adult merchant account, take time to look at the current landscape of the adult industry.

Sure there is a lot of profit to be made, and ideally, any merchant account provider would like to partner up with a merchant in a highly-profitable industry. However, the reality is that you will have great difficulty securing an online merchant account provider if you are in the adult industry.

Depending on the provider, you will hear various reasons why they will not provide payment solutions for adult merchants. Here are the most common:

  • Card-not-present transactions
  • Possible fronts for illegal activity (Prostitution, Human Trafficking, Money Laundering)
  • Higher incidences of chargebacks
  • Higher incidences of fraud
  • Age restrictions
  • Taboo subjects

All of the above scenarios expose the provider and bank to potential risk and therefore, they simply choose not to partner up with adult businesses. In addition, all of these characteristics place the adult business in the high-risk category. 

What Is The Answer?

So where can these legitimate adult merchant business owners turn to in order to process their card payments? They would need to seek the services of a high-risk merchant account provider.

High-risk merchant account providers have substantial experience working in numerous verticals within the high-risk industry. This means they are well-equipped to tackle the higher incidences of chargeback and fraud. Many also have reputable partnerships with offshore banks in order to offer an offshore merchant account. 

Here are more features and benefits to partnering up with a high-risk merchant account provider. Again, every provider is different but do inquire if they offer these services:

  • Secure online payment gateways
  • Chargeback management systems
  • Custom pricing
  • Virtual terminals
  • Transparent pricing models
  • 24/7 customer support
  • Fraud protection

How To Secure A Processor For Your Adult Business

There are some preliminary steps that you should take before you seek a reliable and trustworthy payment processor. Here is just some documentation that you will need when applying for an account:

  • A valid ID (passport/driver’s license
  • Recent bank statements (last 3 months)
  • Social Security Number
  • Recently processed statements (last 3 months)
  • Business license
  • Business plan
  • Have a secure website (PCI DSS compliant)
  • Clear return and shipping information on the website
  • Contact information is clearly shown on the website

When you are ready to apply for an adult merchant account, you can begin by filling out an online application and submitting the aforementioned documents. An underwriter will carefully scrutinize all information provided so please be completely honest and transparent about what your business does. They want to ensure that you are running a legal operation. 

The decision for approval could take one to several days. Upon approval, a member of the provider’s team should assist you with the onboarding process, including getting your online payment gateway set up. 

Your Industry Demands A High-Risk Merchant Account Provider

Launching an online adult-themed business is one of the most lucrative ventures out there. However, the adult industry has clearly defined requirements that must be met in order to satisfy its stringent legal demands.  

That’s why partnering up with a trustworthy and reputable high-risk merchant account provider simply makes more sense.

Let us help you get a high risk merchant account today!

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

Live Chat