Introduction: The Need for a Solid Payment Gateway in Adult E-commerce
In the dynamic realm of e-commerce, entrepreneurs continually seek secure and reliable payment gateways to propel their business forward. For those venturing into the adult industry, securing a merchant account can be intricate and challenging, especially in the United Kingdom where the demand for adult-oriented products and services is on the rise.
I. Navigating Legal Waters: Compliance and Transparency in the Adult Industry
1.1 Understanding Industry-Specific Challenges
The adult industry faces unique challenges due to the nature of its offerings, requiring a meticulous approach when seeking a merchant account. Entrepreneurs must prioritize transparency and compliance with legal regulations.
1.2 The Role of Reputable Payment Processors
Engaging with a reputable payment processor experienced in handling adult content is a cornerstone for a smoother application process. Age verification regulations, in particular, must be addressed with robust measures to adhere to strict requirements.
II. Confidential Transactions: Choosing the Right Payment Processor for Adult Content
2.1 Privacy as a Top Priority
Privacy and discretion are paramount in the adult industry. Entrepreneurs must carefully select a payment processor that prioritizes confidentiality, safeguarding customer data and ensuring transactions are handled discreetly.
2.2 Proven Track Record in Customer Data Protection
Choosing a payment processor with a proven track record in protecting customer information instills confidence in both businesses and their clientele. This strategic selection creates a secure foundation for online ventures.
Conclusion: A Strategic Approach for a Secure Foundation
In conclusion, obtaining a merchant account for your online adult business in the United Kingdom demands a strategic and meticulous approach. By navigating legal requirements, prioritizing transparency and compliance, and selecting a payment processor attuned to the sensitivities of the adult industry, entrepreneurs can unlock opportunities for growth and establish a secure foundation for their online ventures.
Applying for a merchant account can be a daunting experience, especially if this is your first time in the market.
When a firm goes bankrupt or has a large number of chargebacks (the reversal of cash requested by the customer from your account back to the customer), merchant processors face financial risk and liability. It’s an obvious opportunity for fraudsters. So, before forming a partnership, banks and merchant account processors do their study.
When a company does not match the requirements for a low-risk merchant account, a high-risk option generally meets its needs. These accounts enable businesses with high chargeback rates, poor credit, or a bad reputation to accept credit and debit transactions, but getting one is far from guaranteed. If you make a few errors on your application, your business may be unable to accept your consumers’ payment options.
If your high-risk merchant account application is rejected, it could be due to one of the following issues:
Lack of appropriate documentation
Give the account provider the most accurate summary of your firm that you can when completing an application. To accomplish this, you’ll need current monthly statements that include information about your business’s monthly volume, chargebacks, and decline rates.
High Decline Rates
Customers’ banks may reject transactions when they make purchases from your business owing to incomplete information, anti-fraud regulations, and other reasons. Even while this issue may be unavoidable, if it persists long enough, it may have negative effects. Some merchant account providers could refuse to work with you if more than 10% of your transactions are refused.
You Are Enlisted On The MATCH List
Those who engage in fraud, money laundering, collusion, illegal activities, and other offences are listed on the Member Alert to Control High Risk (MATCH) list. You can find it challenging to get a merchant account for up to five years if your name or that of your company shows on the list.
Make sure the directors you choose—or even the company’s largest shareholders—have a spotless record to avoid being included on the MATCH list.
Your Company Is Linked to Fraud or Illegal Activity
The acquiring bank may reject your merchant account application if it determines that your goods or services are connected to fraud or unlawful activities. Among the instances are:
A merchant attempting to sell controlled substances.
Adult material that is prohibited, such as child pornography, excessive violence, or bestiality
Products on a website that don’t match the description or price
High Chargebacks
High-risk accounts typically give sectors that frequently deal with disputed transactions more latitude. The same is true for companies that provide services like annual memberships or automated recurring billings, which can lengthen the duration during which a business is exposed to chargebacks. However, there is still a line that some service providers won’t go beyond. The likelihood that your application will be approved will rise if you avoid making too many chargebacks.
Issues with Licences
Companies typically require a business license to approve a merchant account. In many cases, this can be as straightforward as obtaining a company license, but some internet businesses, including pharmacies and gambling websites, are subject to tougher regulations that limit where they can operate and what they are allowed to sell. You could not be eligible for a high-risk merchant account if your business is unable to acquire these requisite permits.
Tax liabilities
To open a merchant account, you must provide both personal and business information, especially if you need to issue a guarantee on behalf of a specific person. Establish a debt-resolution mechanism to make sure a tax lien won’t have an impact on your application since it is a huge red flag for service providers.
Unclear Sales Volume
One advantage of opening a high-risk account is the potential to generate large sales volumes. But the best course of action is always to be transparent. If you declare volumes that are out of proportion to the size of your typical ticket, your application might not hold up under review by a service provider.
Failing to comply with Merchant Agreement Terms
If you go over the processing thresholds set in the merchant agreement of your service provider, you risk offending them. Understanding the terms to which you have signed is crucial because failing to do so could make it difficult for you to obtain future merchant accounts.
Abominable E-Commerce Enterprise
There is a list of sectors that the majority of high-risk credit card processors do not accept. This does not imply that the enterprise is unlawful. It can only signify that the processor lacks a financial partner that accepts this particular sector of e-commerce. Based on the level of risk, acquiring banks choose which e-commerce sectors they want to embrace, and the bank may simply judge your sector to be too hazardous.
The aforementioned advice can assist you in taking the proper actions to quickly and easily obtain acceptance for a merchant account.
For your business’s Low, Medium, or High-risk levels, Radiant Pay has the ideal combination of merchant account services to let your profits flow smoothly. Any legitimately operating business that sells memberships, services, or goods online is qualified to apply for a merchant account.
With the rise in the Digital Age, the adult industry has also boomed. Among many sectors in the market, the adult industry is one of the most lucrative, and growing rapidly, especially in the United Kingdom. The industry is expanding dramatically in terms of sales volume, a spike in the number of customers making purchases. The world has moved its businesses from offline or bricks and mortar to online, and so is the Adult Industry moving too. And with the industry moving, business owners need a merchant account in order to accept credit and debit card transactions.
However, getting an account approved for this becomes a task. Due to the nature of business and a variety of other reasons most providers simply won’t approve an account adult business. The main reasons for rejection which are highly influenced are increased risk of chargebacks and reputational damage. This might have resulted in forcing many business owners out of desperation to accept subpar standard processing solutions for their legitimate online business.
Finding the right fit solution for your business can be difficult and troublesome but it will help the business in the long-term success of your online adult business be it the sale of sex toys or physical goods which comes under this business or the subscription services for exclusive digital content.
For all adult goods and services, including digital downloads, entertainment websites, legal escort services, streaming video, webcams, online dating, toys, novelty items, travel, strip clubs, and more, Radiant Pay offers adult merchant accounts. Since Radiant Pay has been doing this for a while, we are in a good position to impart our specialized knowledge on offering “package” services to the online adult industry. With affordable prices, subscription billing services, and cutting-edge fraud prevention technology.
The term “adult industry” covers a wide range of goods and services with adult themes. Here is a short list of the adult industry’s most popular subcategories:
Dating Websites
Sex Education Material
Lingerie items
Fetish-related items, Sex toys
Lubricants and Lotions
Adult-themed videos and photographs
Escort Services
What Makes the Adult Industry High Risk?
The following are some elements that make businesses in the adult sector high risk:
Reputation Risk:
While the majority of processors are happy to work with any profitable company, they do have to consider their reputations. Even though they are entirely legal, some providers simply don’t want to be associated with these kinds of companies.
High Regulatory Compliance Standards:
Compliance with multiple laws adds a layer of complexity that many processors do not want to deal with given that eCommerce businesses operate in almost every state.
Chargebacks
The most frequent factor that makes a company considered high-risk are having a higher-than-average chargeback rate, which affects many areas of the adult industry.
Risk of Frauds
All eCommerce businesses are increasingly concerned about fraud, but historically, the adult entertainment sector has had more of a problem with it.
Payment Fraud
The primary method of payment for adult entertainment and eCommerce businesses is card-not-present (CNP) transactions. In comparison to in-person card payments, CNP transactions have higher rates of identity fraud.
We Radiant Pay provides adult businesses with multiple options from which to choose, and we process online credit card and check payments. This will help both unbanked customers and businesses that have trouble getting merchant accounts. The majority of adult businesses can obtain an adult merchant account through Radiant Pay, which specializes in high-risk merchant accounts and is connected to card processors.
Hassle-Free Adult Merchant Account
Are you having trouble locating a provider of adult merchant accounts? Whether you operate an adult business online or offline, we do have a good solution for you. You may have spent many hours filling out card processor applications only to keep getting rejected. You will require a Merchant Account and a payment gateway if your business caters to adults. Your company will be able to accept card payments online while also increasing security by not keeping any cash on hand. Although many providers of payment services are hesitant to work with adult businesses, many of them are skilled in high-risk credit card processing solutions.
If you have any questions about setting up a merchant account, get in touch with us to speak with one of our payment specialists.
Author’s Giveaway:
Understanding 2257 and How It Affects Your Adult Business
Banking institutions place a high priority on following rules and regulations because doing otherwise could harm their reputation, and finances, or cause them to be penalized. The fact that the adult sector is subject to more regulations than many other sectors simply increases the likelihood of noncompliance. To obtain an adult merchant account and promote the adult industry as law-abiding, it is crucial to abide by all regulations that apply to the sector.
However, if you employ an actor of any kind, 18 U.S.C. 2257 must be practised in the daily operations of your adult business. Strippers, cam girls, and phone sex operators are the first types of performers. According to Section 2257, every producer of adult content is required to have and keep a copy of a government-issued photo ID proving the performer is at least 18 years old. This document must be kept for at least seven years. If your company dissolves, you are required to keep this record for five years after the end of the business.
