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.

When determining whether a business is ‘high-risk,’ many factors are considered, including the nature of the enterprise or industry, customer types, transaction volumes, geographic location, and payment terms.

Merchants dealing in the travel and cruise industries; Internet auctions; CBD; adult; forex; online gaming; casinos; and many more are all examples of high-risk merchants.

However, just because your business is high-risk does not mean you won’t be able to open a merchant account. It does, however, imply that setting one up may be more difficult. Banks and independent sales organizations that provide merchant accounts will look at how long you’ve been in business, your credit history, and any previous merchant accounts you’ve had with other processors.

Because merchant account providers want assurance that you understand the business environment in which you operate, can identify the potential risks you face, know how to prevent or reduce fraud, and understand how to manage credit card acceptance, the length of time you’ve been in business matters. Regardless of risk, the only thing with first-hand business experience that can provide this kind of insight is.

Good credit history will help you establish your credibility as a potential merchant. If your previous processor terminated your merchant account because you defaulted on payments or had too many chargebacks, it may be difficult to open a new account in the future. And if you’ve previously had a well-maintained merchant account, it’s a good sign of how you’ll handle your new processor.

Follow these guidelines to improve your merchant account eligibility:

Maintaining a good credit score: Before applying for a merchant account, remove any previous bankruptcies, late payments, or mortgages from your credit report. Contact a credit reporting bureau to obtain your credit report. Send them a letter explaining that these issues have been resolved and requesting that they be removed from your credit report. Having a good credit rating will make a lasting and favorable impression on a transaction processor, whether you own a small or large business.
Previous merchant accounts, bankruptcies, liens, or judgments should all be disclosed: You improve your credibility by acknowledging the recent financial difficulties, and you may encounter one fewer barrier to opening a new merchant account. You can’t keep information from the public record hidden.
Be willing to pay higher fees if necessary: If you need to follow special rules or pay slightly higher fees to open a merchant account, go ahead and do it! It’s worthwhile to offer your customers as many non-cash payment options as possible. It will aid in the generation of revenue and the stimulation of impulse purchases.
Look for a credit card processor that best fits your requirements: Learn more about:
The discount rate: The fee paid to the merchant account provider as a percentage of each transaction. The processor may charge a higher percentage of your monthly charges if they are less than a certain amount.

Transaction Fee: For each transaction processed, a flat fee is charged.
Monthly minimum fees: If the merchant’s discount rate and transaction fees do not add up to the monthly minimum specified on the original merchant application, the merchant account provider collects these fees from the merchant each month. If the monthly minimum volume is not met, it usually costs $25 per month.

Reserve Fees: If your credit history is suspect, or if you own a new or high-risk business, you may be required to open a reserve account to protect the processor from future losses. Your reserve account is based on a percentage of your total sales.
Chargeback Fees: These are the fees a processor charges to cover disputed charges.
E-commerce: If you’re an e-commerce merchant, inquire about the costs of storefront solutions, such as shopping carts, Web hosting, payment gateways, virtual terminals, virtual checks, databases for order fulfillment, customer tracking, and a way to calculate tax and shipping charges, from your prospective processor.
Gadgets: Point-of-sale terminals, printers, and peripherals, as well as installation fees, are included.

If you follow the steps outlined above, the process of opening a merchant account should go smoothly. And, in the end, getting approved will put you on the road to increasing your company’s revenue. Operating a high-risk business does not rule out the possibility of accepting credit cards.

Regardless of the factors mentioned above, Radiant Pay is committed to providing you with payment processing solutions that are well-tailored to your business needs. We are a leading London-based agency providing payment solutions to the online business and all the e-commerce enterprises across all “legal” industries. Our clientele is not limited in terms of business size, risk status, or transaction volume and can provide tailored solutions for any type of client and their online businesses.

Radiant Pay Official Blog

Tag Archives: Merchant Account for Adults Business

Adult Merchant Account: Unveiling The Taboo!

What Makes the Adult Industry High Risk?

Hassle-Free Adult Merchant Account

Author’s Giveaway:

How to Get Approved for a Merchant Account

Online Merchant Account Solutions