Why Not Use PayPal for High Risk Processing?

Oct 30, 2017

While PayPal is one of the common options most retailers consider when looking to process credit card payments, there’s always the question of whether you can use it for your merchant account for high risk business. Unfortunately, you can’t, because they don’t accept merchants like you. Along with other payment aggregators like, Stripe and Square, PayPal is not willing to allow adult businesses use their processing service.

These processors have a procedure that’s slightly different from others. While others underwrite you during application, PayPal, Square and Stripe will only start the process as soon as you begin accepting credit card payments. Therefore, even if they agree to work with your adult business when you submit an application, chances are they’ll get back to you in one to six months after conducting their actual underwriting to inform you that they don’t allow adult related businesses. And sorry to say, they’ll instantly terminate your account. And as if that’s not enough harm, they’ll go ahead to freeze your finances for up to six months.

The above consequences explain why PayPal along with other aggregators are an “easy come, easy go” alternative. So if you do not want to run your business in fear that someday you’re account will be frozen without prior notice, go for a high risk credit card processor.

Do high risk credit card processors accept all types of high risk businesses?

Despite the frequent changes in the industry, you will most likely get a processor for virtually any type of high risk business you run. Only ensure your business is legitimate and has a desirable reputation. That way, you can easily get any processor to approve you for a merchant account for high risk business.

Examples of high risk industries we can work with include:

  • Online Lingerie and Adult Clothing Shops
  • Strip Clubs
  • Adult Massage Businesses
  • Escort Services
  • Adult Toys and Novelties
  • Adult Bookstores
  • Adult Content Membership Sites


Most adult credit card processors support high risk ecommerce companies and help them grow their business by giving low payment processing rates and versatile payment alternatives through their merchant account services. So why go for PayPal only to have your business brought down in six months or less?

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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