Merchant Account for Adult Businesses

Online sales are the cornerstone of many adult businesses. As a result, choosing the right adult business payment processor can greatly impact the bottom line. Choose wrong, and your profits get eroded by fees. Or even worse, you can’t process payments and revenue screeches to a halt. Choose right, and you can securely and reliably process payments online without breaking the bank. 

Of course, finding the right adult business payment processor takes some work. You’ll need to understand what to look for and consider your unique needs. Generally, the right adult merchant accounts will come with lower processing fees and fewer service hassles. 

To help you find the right adult business payment processor for your needs, this article will take a closer look at adult e-commerce and what merchants in the industry need to know about payment processing. We’ll also explain why using systems like PayPal, Stripe, or Square as an adult business payment processor is risky

Examples of Adult e-Commerce Businesses

Before we go any further, let’s classify what makes a business an “adult business”. While there’s no one-size-fits-all answer, here are some popular adult business categories:

• Dating and escort services
• Pornographic websites
• Adult toys and games
• Adult bookstores
• Adult clothing and lingerie stores
• Adult massage businesses
• Strip clubs

Generally, any business that offers a product or service focused on sex and other adult content can be categorized as an adult business. If you’re unsure if your business is an adult business and need a payment solutions provider, contact TailoredPay for help. 

Selling Adult Products Online Often Makes Your Business “High Risk”

Choosing the right adult business payment processor has a major impact on your business.It can even be the difference between a successful and unsuccessful adult business. Unfortunately, adult businesses are often classified as “high risk, ” complicating payment processing. 

Often traditional payment processors will overcharge or deny service to adult businesses. In many cases, a high risk merchant account is often the only viable option for adult businesses. 

Is being a “high risk” adult business a problem?

It depends. Traditional banks and processors like PayPal, Stripe, or Square often choose not to offer payment solutions to adult businesses because of the perceived risk. For example:

• “Adult products and services” is listed in Square’s Unsupported Industries list
• “Adult content and services” is listed in Stripe’s Prohibited Businesses list
• PayPal does not permit account holders to sell sexually oriented digital content

High risk merchant account providers like TailoredPay are willing to work with adult businesses when traditional providers aren’t. As long as your business is legal, you can find merchants that will work with your payment processing needs.

Why are adult businesses considered high risk?

Adult businesses are age-restricted. It is also a controversial industry, causing many leading payment processors to avoid working with adult businesses. Everyone has their opinion on the topic, but why is it considered high risk for payment processing? There are various factors, with the industry’s reputation and chargebacks being two of the biggest contributors.

In part, adult businesses are high risk due to their reputation. It’s an unfortunate reality that not every adult site operates legally or ethically. For big providers, it’s easier to avoid the industry altogether than to navigate the risk of servicing legitimate adult businesses. Additionally, adult businesses are often prone to chargebacks that can chew away at profit margins. 

Chargebacks Can Be Costly for Adult Businesses 

Chargebacks are also a major concern for adult merchants. Chargebacks are often a result of fraud. They can also be the fault of merchants who don’t understand their consumers and are simply part of the subscription sales model to some extent. The right processor can help mitigate the risk of chargebacks. High-powered alerts and detection systems are vital in reducing chargeback risk in the adult industry.

The TailoredPay difference

TailoredPay leverages Verifi’s CDRN (Cardholder Dispute Resolution Network) and Ethoca’s alert system to help adult businesses mitigate chargeback risk and save money.

Finding the Right Adult Business Payment Processor

Finding the right merchant can be confusing. Sure, online options like Stripe may always approve you. But once you start processing payments, they will underwrite your account. Then you will soon realize that the actual processor is important, not who approves you. Working with a merchant specializing in adult business adds a sense of security. 

Accepting credit and debit card payments isn’t a bonus, it’s a necessity in today’s market. Choosing the right company can be hard, but choosing one with your best interest at heart is worthwhile.

Partner with TailoredPay for the best payment solutions in the industry

Payment processing for adult businesses comes with a complex set of challenges. At TailoredPay, we’re experts in helping high risk businesses — like adult businesses — find the payment solutions they need without breaking the bank.

We focus on right-sizing adult business merchant accounts and terms that enable your business to scale. Adult businesses that partner with TailoredPay gain:

• Affordable and transparent rates 
• Opportunity for approval even if other providers have rejected you
• Powerful chargeback mitigation 
• Industry expertise that right size your payment processing

If you’d like to get started, complete this simple form, and we’ll get back to you within 24 hours!