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.