Adult Subscription Merchant Account

Jan 05, 2022

According to IBIS World, the market size of the Adult and Pornographic website industry in the US was worth $803.6 million as of 2021. It is expected to grow by 3.7% this year, increasing faster than the technology sector. The market has grown on average 12.7% per year from 2016 to 2021.

Unsurprisingly, given the growth of mCommerce, the mobile consumption for both adult and pornographic websites is a potential growth area as customers can access this material on demand. This in turn also increases the demand for more products, contributing to higher revenue.

Why Is Adult Entertainment A High-Risk Business?

Within the world of the adult entertainment market, there are a wide variety of smaller niches that make up the whole market. With a variety of niches comes a variety of different products and services that fall into their own categories. Some of the niches can include:

  • Adult Toys and Novelties
  • Strip Clubs
  • Adult Massage Businesses
  • Adult Content Membership Websites
  • Adult Bookstores
  • Online Lingerie and Adult Clothing Shops
  • Escort Services

This can easily place this industry in a high-risk category as many processors do not support many of these types of businesses. All of these niches that sell these products and services have age restrictions, also placing them into a high-risk designation.

Escort services, for example, can present a legal problem, as a misunderstanding between escorting services and prostitution can potentially expose a business to criminal charges. 

Also, many of the adult businesses conduct their operations entirely online, which means they take card-not-present (CNP) transactions. That in itself exposes the business to fraud. Plus, any business that offers a subscription-based or a “pay-per-minute” service falls under the high-risk category. 

Finally, the adult entertainment industry is often plagued by chargebacks due to the stigma associated with adult-themed products and services. With an excess of chargebacks comes the eventual shut down of the merchant account.

For all the aforementioned reasons, banks and traditional processors will not work with adult entertainment merchants. 

So what is the solution?  The solution is to seek a high-risk merchant account provider that knows the adult entertainment vertical well and has a long track record supporting and processing card payments for adult subscription merchants. 

Introducing EMB

As a full-service provider, specializing in the high-risk industry, EMB offers the best pricing, no annual fees, chargeback protection services, and so much more. EMB can provide you with a merchant account for adult novelty, dating, adult toys, and a host of other adult-rated websites.

EMB knows that offering a one-size-fits-all solution is not going to cut it. Instead, it offers a tailor-made solution to meet the specific needs of your business. 

Applying for a merchant account is a quick and seamless experience. All you have to do is visit the EMB website and fill out a simple online application.

You will need the following documentation to get started. Have these ready before you submit your application:

  • A valid, government-issued ID, such as a driver’s license
  • A bank letter or a pre-printed voided check
  • 3 months of the most recent bank statements
  • 3 months of the most recent processing statements, if applicable
  • SSN (Social Security Number) or EIN (Employer Identification Number)
  • Chargebacks must be under 2%
  • It is also required that, if an eCommerce merchant, you must have a secure, working website

Upon approval, the merchant can begin processing credit cards right away. 

Choose Only The Best

The adult industry certainly has a lot of pitfalls that need to be avoided in order to thrive. However, by choosing only the best, most reputable, and most knowledgeable adult subscription merchant account provider, you can rest assured that this partnership will take your business to the next level and beyond. 

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

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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.