Adult Merchant Accounts

You may or may not like or approve of adult entertainment on the internet.  Or, it’s possible that you may not have ever visited any adult entertainment sites.

One thing is for sure.  You know somebody who has.  You may sit in the next cubicle to them at work.  Or, you go out for drinks with them.  You may even be married to one.   

Obviously, lots of people love online porn.  And whatever you think about the adult entertainment industry online, adult merchant accounts are innovators in payment processing solutions.   

There are two types of adult merchant accounts.  The first is associated with adult “toys” that are shippable products.  Blow up dolls.  Stimulation devices.  DVDs.  Use your imagination.  Surprise your loved one tonight.   

Although shippable products are targeted to adult consumers, companies selling these products are not necessarily classified as high risk accounts.  The risk of chargebacks and fraudulent transactions are not much greater than those associated with any other shippable products.   

High risk adult merchant accounts classification categories apply to digital content, downloads, chats, streaming video etc.  Adult entertainment companies selling virtual goods and services face the same issues as any other digital merchant..  Low ticket, digital delivery virtual goods are high risk merchants because, statistically, these business types have increased chargebacks and greater incidents of fraudulent transactions.   

But adult entertainment companies face even greater challenges.  Let’s face it.  Suppose a man (or a woman) buys adult digital content.  Then, the credit card bill comes due.  The spouse, having no idea that their better half has been dipping into the spice of life online, opens the mail and sees the charge.  What do you think is going to happen?  Yep, lots of potential for chargebacks here.   

Many adult entertainment businesses have a subscription based business model.  Recurring billing is another reason for adult merchant accounts fall into high risk payment processing categories.  Any good adult merchant account will have multiple management tools to help control the risks associated with recurring billing.

Adult merchant accounts are easier to obtain in some countries than others.  This is simply due to the fact that some countries are more tolerant than others of explicit sexual behavior.  

Interestingly, a country like the United States has blatant sexual images everywhere.  Yet, very few acquiring banks in the US offer adult merchant accounts.  , Given the fact that some of the largest US corporations actually own adult entertainment companies, it seems a bit strange.  Yet, remember that the US was founded by the Puritans.  Highly conservative values still are strongly embedded in the public persona of US banking communities.   

There are excellent options for adult merchant accounts with processors in different parts of the world.  For example, adult merchant accounts are often established with acquiring banks in Europe.  And really, doesn’t that make sense?  Think of Europe.  Tolerant to the max.  Great home for adult merchant account payment processing.  Many companies diversify payment processing by establishing adult merchant accounts with different acquiring banks in Europe to mitigate risk and maximize revenues.