Various Types of Adult Businesses

Host Merchant Services likely has a solution for whatever form of adult entertainment your business offers. There are many separate sectors within the adult entertainment industry, and virtually all of them are considered high-risk by banks and processors due to the nature of their products and services. Some areas within the industry face more challenges than others in getting approved for a merchant account to process payments.

Here is a brief overview of some of the most common types of businesses found in the adult entertainment space and the complexity levels they may encounter:

1. Online streaming platforms - Websites that stream live shows or offer virtual reality and subscription-based adult content. These platforms usually have a difficult time finding payment processors.
2. Adult dating sites - Platforms catering to those seeking casual or unconventional relationships. Like streaming sites, dating sites face an uphill battle to onboard processors.
3. Adult novelty stores - Retailers sell intimate accessories and materials. Due to their products, these stores struggle with merchant account acceptance.
4. Escort services - Agencies connecting clients to companionship. Strict regulations and social stigma make processing very tough for these companies.
5. Strip clubs and gentlemen's clubs - Venues providing live adult performances. Banks are often unwilling to work with clubs due to reputation risks.
6. Pay-per-view content providers - Sites with paywalled videos or exclusive adult media. Like streaming platforms, these providers find few payment partners.

No matter the business type, Host Merchant Services can assist with navigating complex merchant account requirements tailored to individual needs. Our extensive experience ensures adult companies get processing solutions to run operations smoothly.

Why is Adult Business Considered a High-Risk Business?

Societal norms aren't the only challenge for adult businesses. Banks often reject their requests for merchant accounts, not solely because of a bad image but also due to legal limits and customer habits. Legal limitations like ensuring user age and dealing with explicit content rules are a few factors that make adult businesses high-risk. The high likelihood of chargebacks and possible fake sales in this area is another concern that the industry has to face.

Merchants often face challenges when seeking adult payment processors. Here are some of the most common reasons why:

• One prominent issue is the concern surrounding the reputation of adult content, which some still perceive as taboo. Consequently, traditional banks and financial institutions might avoid offering payment processing services for adult content to safeguard their public image.
• Additionally, the heavily regulated nature of the adult industry poses a hurdle for merchants. Strict regulations, ranging from minimum age requirements to anti-obscenity laws, discourage many acquiring institutions from providing adult merchant accounts. This avoidance is often driven by a desire to avoid potential legal complications.
• Another obstacle stems from the prevalence of keyed-in transactions in adult entertainment and eCommerce businesses. Unfortunately, these transactions are associated with higher rates of identity fraud than in-person card payments, adding a layer of complexity to adult payment processing.
• Furthermore, high chargeback rates compound the challenges. Individuals consuming adult content may later feel ashamed when the transaction appears on their credit card statement. Consequently, many customers file chargebacks to dispute the purchase and recover their funds. These factors collectively contribute to merchants' struggles when seeking suitable adult payment processors.

How to Apply for an Adult Merchant Account

Applying for an adult merchant account is straightforward. It begins with a dedicated account manager guiding you through each step to simplify the application process. The application does not require payment or financial commitment, allowing you to explore your options without risk.

This allows merchants to consider different account options before deciding. Many adult companies find it beneficial to have multiple merchant accounts to better manage high- and low-volume periods. Our innovative payment gateway system makes it easy to distribute transactions across different accounts automatically.

It's crucial to note that we accept big and small or new businesses and welcome applications from companies anywhere in the United States. The time it takes to approve applications varies depending on location. Accounts for American businesses usually get approved within a week or two. International merchant accounts may require 15-20 days to confirm approval.

Securing your adult merchant account is simple; here’s how you get it:

• Fill out the Application: Begin the process by completing the application form provided by your merchant account provider. Provide accurate details about your business, including its history and operational procedures.
• Submit your Application: After completing the application, submit it with all required documents. Ensure the information is accurate to prevent delays in the approval process.
• Approval and Verification: The provider will verify the submitted information and comprehensively review your application. Depending on the provider, this process may take several days or weeks. Upon approval, you can set up your adult merchant account.
• Set your Account Up: Follow the instructions provided by the provider to set up your account. This may involve configuring payment gateways, integrating the account with your website, and testing the system to ensure smooth functionality.
• Ongoing Compliance: Once your account is established, maintain continuous compliance with relevant laws and regulations to avoid penalties or potential loss of your merchant account. Consistent adherence to guidelines is crucial for the sustained success of your adult merchant account.

Host Merchant Services provides a complete answer for high-risk merchants ready to take credit card payments worry-free. We provide a no-cost EMV-compatible terminal, allowing businesses to process transactions securely on-site. They also present a broad range of POS systems to meet specific business requirements and preferences.

Host Merchant Services provides a complete answer for high-risk merchants ready to take credit card payments worry-free. We give a no-cost EMV-compatible terminal, allowing businesses to process transactions securely on-site. They also present a broad range of POS systems to meet specific business requirements and likes. Clients can pick between Authorize.Net or Transaction Express payment gateways, giving flexibility and power over their payment handling.

Each account also comes with complimentary website hosting, making online transactions easier for e-commerce businesses. Host Merchant Services includes $100,000 data breach insurance with all accounts, ensuring merchants' protection from possible cyber risks. This all-inclusive package is formulated to equip high-risk merchants with the necessary tools and support to flourish in today's digital marketplace. To be eligible for an adult merchant account, no processing limit is required per month for new businesses.

Requirements for Adult Merchant Account

Host Merchant Services is your go-to place for those in the adult industry seeking swift payment processing. To apply, be prepared with some crucial documents, like:

• A signed merchant form
• A state-issued ID
• A bank letter
• A voided check
• Bank statements

Information about your business and its offerings is also crucial. A safe website is a must-have. It needs an SSL certificate and HTTPS protocol. The company's official name and logo should be visible on your site. Contact information, like phone number or email, and a privacy policy need to be precise. These requirements will be sped up for approval. Thus, your adult business will be in full swing using Host Merchant Services in no time.

Different Types of Adult Merchant Accounts

Here are some common adult merchant accounts that you can get with us:

• Retail Merchant Account:

Adult businesses with retail outlets also need simple and secure credit card payment options. With Host Merchant Services's comprehensive in-person payment gadgets, such as POS software and card readers, we ensure smooth shopping anywhere.

• Phone Merchant Account:

Host Merchant Services also makes phone payments easy with our virtual terminals. These allow your business to take credit card payments hassle-free, without customers needing to visit a store. This increases convenience and provides private payment methods for clients who prefer discreet purchases.

• Online Merchant Account:

Digital payment tools for credit card transactions are vital for online adult businesses. Host Merchant Services grants secure adult payment gateways for international credit card purchases. Make it easy to offer your customers various payment options, including standard payments, subscriptions, and donations!

What Is the Standard Fee for Adult Merchant Accounts?

When it comes to card payments, you must realize the various things that might impact your credit card service charges. Even though average rates usually swing from 1% up to 4%, these rates can change. Variables include card brand, transaction style, and more complex elements. One factor often missed is the merchant's line of work.

Adult merchant accounts face higher costs because they are seen as high-risk businesses. This is due to their work, which can be riskier than others. This adds more financial pressure to the existing obstacles specific to their industry.

Host Merchant Services has solutions specifically for adult businesses. It allows you to accept credit card payments without worry and with no sneaky fees. They help your business grow by making international selling easy and are always available.

Host Merchant Services understands the challenges of the adult entertainment industry. These include image issues, tight rules, and payment fraud or chargebacks. Getting an adult merchant account with Host Merchant Services is not hard. Their team guides you through the process and helps you keep up with any new rules. No matter the type of adult business, Host Merchant Services has the right solutions to help you succeed online.