It is estimated by business owners that the sex toy industry does $15 billion in sales annually. When Hamilton Beach introduced the first electric vibrator in 1902, 10 years before they actually introduced the electric iron or the electric vacuum cleaner, they had no idea they were beginning the trend towards a multi-billion dollar industry. There is a great deal of money to be made with an online account. However, this business is considered a high-risk adult merchant account and oftentimes businesses have difficulty finding a processor with low adult merchant account rates.
The business does not even have to sell sex toys or videos to be considered a high risk account. There are quite a few sectors that fall into this category including adult dating sites. The main reason for the moniker is because many of these sites will have a high number of chargebacks. This can be a red flag to the credit card processor that there might be charging of accounts that did not ask for service. It is a huge red flag to the credit card associations who levy very large fines for having excessive charge backs.
Because of the charge back percentages and the possibility of fraudulent charges made to other individuals’ accounts, it used to be that the adult based business had to look to off-shore processing which was astronomically high. Even with domestic processors today there can be very high monthly fees, administrative fees, high fees per transaction and more. The merchant seeking an adult merchant account needs to compare apples to apples.
If you are an adult business and can keep your chargebacks under a 3% benchmark, there is a processor who can open a new adult merchant account with lower rates than the competitors. Their expert account managers can get you set up quickly and efficiently. And you do not have to have your own Visa or MasterCard registration.
Offering a variety of secure payment gateways that are always CPI compliant, you have no application fees and often no set-up fees. Best of all you can get approved within 24 hours. You do not have to wait days or weeks to be able to accept credit card and debit card payments. What is also important to a small business which needs to replenish merchandise once it is sold, your processing revenue can be in your bank account the following business day.
Click below to get approved for a high-risk adult merchant account in as little as 48 hours!