Protect Your Adult Dating Site Against Internet Fraud

Oct 09, 2014

What many traditional credit card processors and large banks seem to not want to understand is that adult dating sites provide a real service for busy professional men and women. Twenty years ago the industry may have received a bad rap because ‘only losers found dates online.’ Then there were horror stories about the dates a new member was supposed to meet. While these were unwanted incidents, they are not what causes adult dating merchant accounts to be considered high risk.

It all boils down to Internet fraud and the number of chargebacks to the adult dating merchant account. Teens may have ‘borrowed’ a parent’s credit card without permission. A friend ‘borrows’ another friend’s card without permission. A genuine member charges a membership stating he or she is single and then the significant other sees the credit card statement. It is a mysterious charge that no one made. And another reason for chargebacks is the unrecognized corporate name. A member signs up for Sunshine Singles and when the charge hits the customer’s statement it is in the corporate name of ABC, Inc. The member never charged anything at ABC, Inc. and reports the charge as fraud.

There are instances when members legitimately charged their memberships to an adult dating merchant account but for one reason or another it has wound up as a chargeback. Your account will always be considered a high risk account but there are measures you can take to protect yourself to keep your chargeback rates down below the 3% threshold.

If you are not taking advantage of the automated address verification system (AVS), do begin. Even pizza delivery companies are requiring this code for verification. If the AVS does not match what the credit card issuer shows, the sale will be declined. There are also other things your credit card processor can recommend that will help eliminate a number of chargebacks.  Another one you can do on your own is to use an online phone directory to verify a phone number a new member has given you. Send a confirmation notice to the email address that has been provided.

While an adult dating site is in business to make money if you have found a traditional processor who charges outrageous rates to handle your account you are losing money in several ways. Anytime you have a chargeback fee – like an NSF fee at the bank. If you incur too many of these your account may be frozen and your funds are tied up indefinitely. Not only can this cost you money, but it can also cost you your entire business.

There is a processor that specializes in high risk accounts like adult dating merchant accounts. There is no application fee and no setup fees. Recurring billing is available. Rates are extremely competitive and the merchant is not required to have a Visa or MasterCard license. You have secure payment gateways and everything is CPA compliant. Plus, you can get approved in as little as 48 hours.

To get approved for an adult merchant account in as little as 24 hours

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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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