High risk merchant accounts are a set of services that allow businesses to accept card payments from customers. Credit card processors categorise merchants to one of two categories: high risk or low (normal) risk, based on a number of factors.
It’s impossible to believe that businesses today can operate without credit card processing. However, businesses in the adult industry often run into various type of problems. Can you imagine it?
Due to the stigma a lot of payment processors have against the industry, adult merchant accounts are one of the hardest to open – but all hope is not lost there are still options available. In a lot of cases, banks and mainstream financial institutions consider such businesses high-risk for a number of reasons. First, they are closely associated with fraud and chargebacks – that’s why they are subject to government scrutiny and various regulations. Second, high-risk businesses often have a doubtful reputation. For this reason, many financial institutions never want to deal with them.
Here are few things to consider:
Start saving money:
Don’t be surprised if a merchant account provider asks you to set up a reserve account that it can also access in case of future losses or other unexpected financial issues. This will give you security. The more you can stash away, the more serious you will look to a provider.
The fees, be ready to Pay More:
Adult merchant accounts come with higher fees than traditional merchant accounts. Your specific business type, registration with card brands (if applicable), and other factors all affect your final costs.Processors will set pricing and terms on certain business, reviewing the details of your individual needs. It’s a great idea to get quotes from multiple processing companies to compare costs before making a decision.
Get documents ready before you apply:
When you apply for an adult merchant account, you will need to provide a valid, government-issued ID, like a driver’s license, passport, a bank letter or pre-printed voided check, three months of your most recent bank statements(personal, business), your most recent processing statements, Utility bill, etc,.
Offer an explanation for past merchants that were closed:
If you have had previous merchant accounts closed, hold or you have faced any bankruptcy proceedings in the past, you have a zero chance to succeed. These issues may disqualify you automatically.However, if you have a good explanation for them, you might just be lucky.
Show Them You’re Legit:
Customers may shy away from adult businesses due to their reputations, but they should be focused more on the great profits. Adult entertainment businesses often are lucrative ones, when these businesses do well, your merchant account provider in turn does well. Show merchant account providers that you are a responsible, legal business that just also happens to be in the adult entertainment business.
If you are looking for an adult merchant account, you’ve come to the perfect place. IPayTotal provides adult merchant accounts with attractive rates. With us applying for an adult credit card processing account is always free, with no obligation. A dedicated account manager will assist you through the application process to get your account approved quickly.