Escort Merchant Accounts Deserve Fair Treatment

May 21, 2020

A quality escort merchant account ensures that your business thrives in spite of controversy.

Even though most banks and acquirers would rather look the other way, escort services are legitimate, legal businesses.  The confusion lies in the differences between escort services and prostitution services.

The definition of an escort is someone who is hired for their companionship or companionship within a social setting. They are available to be hired within a “commercial setting”. Customers of this service pay a fee or a contract rate. Typically, the escort engages in “non-sexual accompaniment” with the client.

By contrast, a prostitute provides sexual acts in exchange for monetary payment.  Prostitution is considered illegal in most of the United States due to individual state laws. 

So, if escort services are operating legally, why do most banks and traditional merchant account providers continue to  shun these legitimate businesses?  Read on to find out more.

Escort Businesses Are High Risk

You have every legal right to run your escort service as long as you stay within the confines of the law. However, staying on the straight and narrow will not guarantee that you will catch the eye of a traditional merchant account provider. That is because escort businesses are categorized as “high-risk”.

The reasons run the gamut of excessively high chargeback rates, “reputational concerns”, a large volume and value of transactions, little to no processing history (if just starting), legal fronts hiding illegal businesses, card-not-present transactions, and the list goes on.

In order to begin or continue to take credit card payments, you need to partner up with a quality and reputable high risk merchant account provider

High risk merchant account providers are experts in high risk industries like the adult entertainment and escort services industries. Many provide customized solutions for your business needs. Customer service and technical support is also provided when you need assistance.

Helpful Tips For Securing An Escort Merchant Account

Fortunately, you don’t have to be left out in the cold.  There are many professional, reliable, and trustworthy high risk merchant account providers that will be happy to take you on to provide you with an escort merchant account.

But before you go on a rampant search on Google, take the time to prepare your business to better position you to be accepted on your application.

Here are some helpful tips to get you started:

  • Protect Your Credit Score

Pay off any remaining balances on your credit cards, loans, or liens. Once that is done, reach out to one of the major credit reporting agencies and let them know that you have satisfied your financial obligations. Do whatever it takes to increase your credit score as it will deem you responsible.

  • Begin Stashing Away

It would be a good idea to put aside as much money as you can. Your merchant account provider might have you open a reserve account in order to offset any financial losses in the future or other financial troubles.  It will give you peace of mind and a sense of protection. 

  • Gather Up Your Documentation 

As per industry standards, merchant account providers will request a few pieces of documentation, including: a legitimate government-issued ID (like a driver’s license), a voided check, most recent banking statements, and a Social Security Number or a EIN (Employee Identification Number). Having these docs at the ready will ensure a smoother application process.

A legitimate business deserves a legitimate high risk merchant provider

Although there are a plethora of high risk merchant providers vying for your business, don’t fall into their schemes. Do your homework, read reviews, and ask for referrals. Your business already has an unfavorable reputation, therefore combat it with professional providers who want you to stay within the legal guidelines and offer you support along the way.

Award winning.

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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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