Adult-related businesses have long been marginalized when it comes to a merchant account and payment solutions.
Many banks don’t want to process payments for escort services. Yet an escort service needs a secure merchant account to begin processing online payments.
This type of business is categorized as a high risk for many reasons, and most financial institutions would rather stay away from an escort service.
Why Banks Will Turn Down Your Escort Business
Below are some reasons why banks consider escort services high-risk.
- Escort services have a tainted reputation
The escort business is often considered immoral by many individuals. The morality aspect causes many financial institutions and payment service providers to turn down escort services.
- Escort services are often associated with high chargeback rates.
Chargebacks are common in escort businesses. When a customer is not satisfied with an escort service, they may file a chargeback request.
Many financial institutions associate high-risk businesses with high chargeback rates.
However, modern high-risk payment service providers understand these risks and have what it takes to help merchants mitigate chargebacks.
- Unscrupulous practices
Some companies offer prostitution services under the pretext of escort services.
Such unscrupulous practices are illegal in various countries, and many PSPs like to go the extra mile to ensure they are working with a genuine escort service.
What You Need to Set up an Escort Merchant Account
Before opening an escort merchant account, you need to prepare the following documents:
- Quarterly or semi-annual data on processing payment, including chargebacks, overall sales, and refunds.
- Quarterly Banking statements for the escort business.
- Certificates of incorporation and incumbency.
- Photocopies of all the current owners’ and officials’ passports.
- A structured, filled application form that includes the organizational structure, which gives the PSP insight into the business.
Your firm’s escort website must also adhere to some requirements. A compliant escort website should contain the following information.
- Payment and refund policies.
- Contact info that includes email and telephone info.
- Forms of payment based on geo-preferences. You must also include the logos of the payment options available on the platform.
- The escort service’s terms and conditions.
On top of that, other specific requirements could help improve your chances of acquiring a merchant account. They include;
- Copies of work resume for all the escorts in your service
- Signed and validated work agreements also come in handy.
A solid business plan can also help increase the likelihood of a successful merchant account request.
Setting up an escort merchant account can prove tedious and painstaking. However, striving to meet all the set requirements upfront leads to a more straightforward process.