Can Tokenization Help Adult Merchants

Sep 28, 2015

Last year Apple revealed Apple Pay, its answer to mobile payment. Apple Pay runs on tokenization a safer way to send sensitive data like card account numbers. Tokenization has been posited as the answer to security concerns surrounded by mobile payments. A recent report from EMVCo champions the use of tokenization with not only Apple Pay, but with MasterCard, Discover, American Express, and UnionPay, JCB, and Visa. The report claims that consumer data security will be improved with tokenization. Plus tokenization is not meant to infringe upon the territory of traditional banking institutions as it is compatible with the current infrastructure and is complimentary to EMV chip specifications.

Tokenization technology’s potential is significant. It could be the payment processing solution to many merchants who have a difficult time establishing secure and consistent payment, like those in the adult industry. Tokenization and mobile payments will be a low hassle, quick way to get payment for adult merchants who often face discrimination in payment processing. Many adult entertainers and small businesses have had their accounts frozen using online payment solutions like PayPal due to the nature of their work. And it is difficult for them to get traditional payment processors to process checks or credit cards.

Although tokenization has been lauded as a secure technology, some question if it will be enough to secure online payment. Tokenization limits exposure of consumer data by keeping it in the hands of payment processors and banks. Mobile payment platforms like Apple can enable more rigorous identification features, like fingertip and face recognition. But tokenization still has some vulnerabilities. One particular issue could be network segmentation. To be secure, data processing systems must be separate from the tokenization system to prevent thieves from taking the algorithms that can be used to detokenize. Also hackers must be prevented from recovering the original PAN (Personal Account Number) from the token that is generated as a proxy.

Building a thriving adult merchant business is possible if merchants use technologies like tokenization to enable faster and more efficient payment processing. Adult merchants and other high risk merchants can use the help of experienced payment processors like to maintain and monitor their adult merchant accounts.

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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.

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