Dating Merchant Account: Insider’s Guide.
Handling payment processing for an online dating platform is not as simple as swiping right or swiping left. Dating merchant accounts face elevated scrutiny because of high-risk designation, typically MCC 7273. This is because of concerns such as recurring billing disputes, age verification, and content moderation. Most mainstream businesses get quick onboarding and are hardly asked for any reserves; however, dating websites and apps are often asked to accept a reserve, which can range between 5% and 10%. Such accounts go through deep evaluation.
This is why only specialized high-risk processors can truly cater to dating merchants card processing requirements. Generally, low-risk processors cannot handle the compliance demands, fraud mitigation challenges, and sensitive regulatory requirements that come with the dating industry. By working with the right high-risk processor, your dating platform can maintain a stable payment flow, reduce operation costs, and also scale globally.
Dating vs. Traditional Merchant Accounts: A Comparison
| Factor | Dating Merchant Account | Traditional Merchant Account |
|---|---|---|
| Risk Classification | High (MCC 7273) | Low/Medium |
| Rolling Reserves | 5–10% common | Rare |
| Processor Type | High-risk PSPs | Mainstream PSPs |
| Chargeback Thresholds | Stricter | Moderate |
| Onboarding Time | Longer | Shorter |
What is a Dating Merchant Account?
A dating merchant account is a specialized bank account that allows dating apps and sites to accept credit card payments. With this account, dating companies can accept one-time and subscription payments. The merchant classification code (MCC) for dating merchants is 7273.
What is an Adult Dating Merchant Account
Adult dating platforms face even greater scrutiny than traditional dating apps. These include sugar dating, matchmaking sites, communities, and age-restricted platforms that monetize through subscriptions or premium content. Most traditional PSPs will reject adult dating sites outright.
To improve the chances of approval, you must work with a high risk payment processor that understands relevant compliances, including content moderation policies, merchant/users KYC vetting, and subscription-driven models.
Looking for a subscription billing gateway for adult dating? Explore our adult content billing solutions.
| Risk Factor | Explanation |
|---|---|
| Fraud & Scams | Fake profiles, catfishing & financial scams increase chargeback risk. |
| Data Theft & Privacy Issues | Users share sensitive personal info, which requires extra security compliance. |
| High Chargeback Rates | Users often dispute charges due to unmet expectations or identity issues. |
| Reputational Risk | Associated with adult content, age verification, and fraud. |
| Industry Rules | Exclusion due to content, advertising, or brand policies. |
What Makes Online Dating A High Risk Industry?
There are many reasons why dating merchants are considered high risk. Historically, this industry has seen many serious legal challenges. In 2015, a well-known Canadian online dating service faced a major data breach. The platform targeted married users. It exposed the personal details of over a million people. In 2019, a significant incident occurred. Investigators discovered a dating site manipulating users by creating fake profiles. The prominent dating site faced significant legal action.
Big brands like Grindr, Bumble, Tinder, and OkCupid have strict data security measures. Despite these efforts, they continue to face challenges related to privacy. Protecting user data remains a constant concern for all dating platforms.
All these instances make banks worry when they onboard online dating merchants. In addition to these concerns, there are many other factors to consider. Let’s look at a few of these factors.
Fraud and Scams: There have been many instances where innocent people were cheated monetarily. Scammers are experts in catfishing. They create fraudulent profiles using someone else’s pictures to manipulate users. If a dating app is not properly managed, it can easily become a hub for criminal activities. These activities include stalking, harassment, and physical violence. Dating merchants must have robust systems in place. These systems should detect fraudulent users. They must also permanently ban these users.
Chargebacks: In this industry, it’s common for users to be dissatisfied by the overall experience of using the platform. Dating websites can offer the possibility of finding like-minded people. However, there is no guarantee. The outcomes are unpredictable, and users may ask for refunds, which can be problematic for payment processors.
Reputational risk for banks: In many societies, talking about adult dating and sugar dating is still taboo. Many banks believe that their association with adult dating sites can affect their reputation.
Market Saturation: The market is very much working on an 80:20 principle. Existing big brands capture a large market share. This market saturation leaves little potential for new companies.
Features of Online Dating Merchant Accounts
| Feature | Purpose |
|---|---|
| Fraud & Chargeback Protection | Helps prevent fraudulent and invalid transactions to reduce risk exposure. |
| International Payment Acceptance | Supports global transactions in multiple currencies (USD, EUR, GBP, etc.). |
| Multi-Currency Support | Allows customers to pay in their local currency. |
| Alternative Payment Methods | Supports wallets, crypto, ACH, SEPA, and more. |
| Flexible Payment Gateway | API integration with dating websites and CRMs. |
Fraud Reduction Tools: Chargebacks are a big challenge for dating merchants. That’s why it’s important to choose a solution that comes with advanced fraud reduction tools.
Subscription payments are an important feature of a dating merchant account. This feature allows merchants to accept recurring payments. When a user signs up for paid membership on a dating website, then the user pays the subscription amount each month. Subscription payments are vital for dating sites.
International Payment Methods: Dating sites operate internationally. Merchants cannot limit themselves to accepting only local card payments. The payment processor must allow merchants to accept all types of cards. This includes cards issued internationally.
Chargeback Management for Dating Sites
In the world of dating, love may be blind, but chargebacks are not. Dating sites and mobile apps are vulnerable to disputes because of user remorse, catfishing incidents, and unmet expectations. A user might subscribe hoping to get a match but cancels out because of frustration or suspicion. Some may claim fraud after recognizing the recurring billing, which they forgot after subscribing. All this creates a perfect storm for friendly fraud, false claims, and costly penalties, which can damage your MID’s health.
But there is an antidote.
We call it proactive chargeback defense for dating sites. Forward-thinking dating merchants can now leverage ethoca and Verify alerts. Since 2016 we have helped many merchants set up these CDRN solutions. All merchants have benefited. Merchants get an alert before they escalate. When you combine that with pre-dispute refunds, branded billing descriptors, and tools like 3D Secure 2.0 for strong customer authentication, you will have the perfect formula to lower the risk on your account.
Remember, our goal is not only to help dating merchants fight chargebacks, but we also want them to prevent them before they happen.
Top Chargeback Prevention Tools for Dating Merchants
| Tool | Function |
|---|---|
| Verifi CDRN | Prevents formal chargeback filing by enabling early refund |
| Ethoca Alerts | Alerts merchant to pending disputes |
| 3D Secure 2.0 | Verifies cardholder identity for fewer fraud claims |
KYC for Dating Payment Gateway
To get the approval of a dating payment gateway, the business owner must submit certain documents. These KYC documents help verify the legal status of the company and the business owner.
| Document | Purpose |
|---|---|
| Government ID | Verifies identity of the business owners or directors. |
| Bank Account Letter | Confirms the merchant’s active settlement account. |
| Proof of Website Ownership | Verifies domain and business control over the platform. |
| Business Registration Proof | Confirms legitimacy and licensing of the business. |
| Billing Descriptor & Terms Page | Prevents confusion and helps reduce disputes. |
| Content Moderation Policy | Shows how the platform vets user content for safety and compliance. |
For the business registration proof, you can provide the certificate of incorporation. The business registration document may vary based on the type of business structure.
Your payment processor deposits funds into your business bank account. Remember that the name on the bank account should match your registered company. For this, you can provide a voided check or a letter from the bank confirming your account details.
For personal identification, business owners can submit a copy of their passport or driver’s license. Make sure that these documents are valid and are in English.
A few other documents are required. These include domain registration proof, a processing statement, and a bank statement.
FAQ: Online Dating Payment Processing
Will I be able to get an extra MID if I want to start an online dating site for another niche?
A merchant can definitely have more than one MID depending on the requirements. Yet, the payment processor must verify and approve the new URL. If merchants process transactions on unregistered URLs, they risk fines and account termination.
How should merchants handle uploaded content to ensure compliance with industry standards?
The merchant is responsible for ensuring compliance. They must make sure that any content uploaded follows the payment processor’s policy. For this, the merchant can use a combination of manual and automated moderation tools.