Uplift Your Concept about Adult Merchant Account While Doing Business in Adult Industry
There is not a denying fact that the adult entertainment industry is not only expanding but also is quite a lucrative one.Although there are some controversies regarding such an industry, however, it is not at all illegal to run a business that deals with adult services or products. It also noticed that the growth of the adult entertainment industry into the digital market has actually enhanced the importance for adult merchant account mainly for the adult entertainment online vendors. According to the credit card processing industry, such a merchant account for adults is basically categorized under high risk merchant accounts.
Therefore, when you need to do business with adult industry whether to buy or sell products. You have to take help from high risk payment processor, which offers a comprehensive payment solutions for everything related with the adult business, such as escort services,dating sites,adult bookstores, strip clubs, adult e-books and also membership subscriptions for any adult content websites. This merchant account is mainly needed to do business with adult industry as all the traditional banks have made it impossible to process any credit cards for such industry
How to setup an Adult Merchant Account?
To obtain a merchant account for adults mainly for any escort services,a strip club, any online dating sites are not very easy. Actually, the adult businesses are not only high-risk one due to the industry but also concern with a large amount of chargebacks involving in such adult businesses. Therefore, owners of an adult business cannot go to a bank and request for an account that can process credit cards. That is why such businessman needs to opt for high-risk merchant account providers, whose underwriting team reviews the online application form for adultery merchant account just within a minute.After that, such providers help different general e-commerce companies by providing them lower card processing rate structures and versatile payment solutions as a part of merchant account.
Application Process of Adult merchant account
To get started, you need to fill online application of your chosen adult merchant account providers. The application process will proceed more smoothly if your business possesses the following requirements.
- A pre-printed blank check or a bank letter
- Government-issued valid ID
- The most recent business processing statements, at least of 3 months
- The latest bank statements not less than 3 months
- Chargebacks should be below 2%
- Valid Employer Identification Number (EIN) or Social Security Number (SSN)
- E-commerce merchant must have a working as well as secure business website.
Account fees for Adult Merchant Account
The fees charged by any high risk merchant account providers are depending on numerous factors, including the type of industry (may be low or high risk), the merchant’s processing history, and projected sales volume. Each of the merchant accounts is completely different and the fees typically consist of the following.
- Merchant account basic fee
- Merchant account registration fee
- Discount rate
- Transaction fee
- Monthly settlement fee
- Refund fee
- Chargeback fee
Types of merchant account for adults
Basically, merchant accounts for adults are of four types.
- Offshore merchant accounts for adults (with the history of payment processing)
- Onshore merchant accounts for adults
- Offshore startup merchant accounts for adults
- Adult virtual check solution
Approval time span for Adult Merchant Account
The time taken to pass approval for adult merchant account approvals usually varies with each type of solutions offered by high risk processor, some of the estimates include the following.
- 5 working days to 2 weeks for offshore startup merchant accounts for adults
- 5 business days to 2 weeks for offshore merchant accounts for adults with payment processing history
- 10 days to 2 weeks for domestic merchant accounts for adults
- Only 2-3 working days for adult virtual check solution
Chargeback prevention for merchant account for adults
Chargebacks are supposed to be a major difficulty for the adult industry. Often, the consumers of adult business cause dispute with charges via their credit card payments or statements, claiming they haven’t bought content or joined any dating site. Thus, whatever be the reason, various high risk merchant account providers therefore help adult merchants to prevent chargebacks through their websites. Some of the tips to prevent chargeback include the following.
- As many consumers forget their purchase through credit card, which may result in chargebacks and thus to prevent it he should opt for a clear billing with full description.
- The company should send an automatic e-mail receipt after completion of a transaction.
- In the case of a dispute, it is better to offer a refund to the customer than a chargeback.