Open A Merchant Account For Your Online Dating Website

Jun 06, 2022

Online dating websites and apps have gained significant popularity in recent years. As more people worldwide have found their significant others online, it is a testament to what the latest technology can do. Online dating sites can introduce two people who would’ve never met otherwise. 

Statista’s latest Digital Market Outlook report found that online dating services are expected to have as many as 413 million active users around the world by the end of 2022. It is also expected to earn as much as $3.7 billion in revenue worldwide via pad subscriptions. 

As a clearly lucrative market, launching your own online dating website means that you are positioning yourself within an industry that has much room to grow.  

The Reason Online Dating Merchants Considered High Risk

Launching any online business has its fair share of challenges. Online dating websites are no different. In fact, this particular industry is so prone to risk that it has been categorized as high-risk by traditional banks and merchant account providers. 

Let’s take a look at the main reasons why online dating merchants have been labeled as high risk:

  • Higher incidences of chargebacks

When it comes to using an online dating website, a disclaimer is in order. What should be prominently featured on every online dating website is that, just because a user signs up and pays a monthly subscription to use the site, there is no guarantee that the user will find their partner. 

While these disclaimers may be featured on the site, it does not change the fact that many users, who are unsuccessful in finding someone, do commit friendly fraud. That is, since they were dissatisfied with the service they received, they inevitably filed a chargeback. 

  • Recurring transactions

Recurring billing is when an agreed-upon amount is charged on an agreed-upon date each and every subsequent month until the customer decides to cancel. Since most online dating websites use this business model, it is something to be expected. 

However, the issue that traditional processors see is that customers either forget that they signed up, or they forget to cancel once they found someone, which once again leads to chargebacks. 

  • Money laundering

Another major concern for traditional providers is that some online dating websites have been used for illegal purposes such as escort services and even human trafficking activity. 

What To Look For In An Online Dating Merchant Account

The success of your business will largely depend on who you choose for your payment processing needs. Choosing the wrong merchant account provider, ill-equipped to handle the challenges of a high-risk merchant, will mean that your funds can be frozen or the account can be outright shut down due to excessive fraud and chargebacks.

A shutdown of your payment processing capabilities means that your only source of the cash flow will stop, leading to a tremendous loss in profit. 

In order to find the best online dating merchant account provider for your business, you will need to take stock of what exactly your business needs.

In addition, there are some basic features that a good, reliable merchant account provider must have in order to be considered for a potential partnership.  Here they are:

  • Secure payment gateways
  • Automated recurring billing
  • Low-commitment contracts
  • Transparent and honest pricing
  • Top-tier customer support

It’s always a good idea to take the time to shop around and research all of the products that providers have available. Do take time to compare their pricing and their terms. 

Open An Online Dating Account For Your Online Website Today

Operating an online dating website will have its challenges, especially within the high-risk industry landscape. Knowing this, having the best online merchant account provider will be the key to helping sustain you through the rough waters of fraud and chargebacks. 

Let us help you get a high risk merchant account today!

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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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