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.
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.
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.