Adult Merchant Account

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Adult Merchant Account Starting @ 3.9%*

You might have invested a lot in your adult website as you read this, and may still find something missing. Are you thinking of setting up a merchant account? You can use credit card processing solutions for your adult entertainment website.

Rates and Fees for Adult Credit Card Processing.

If the profile of the merchant is good then the rates can be as low as 3.95%. The rates vary in adult credit card processing industry based on various factors. Merchants risk profile. Merchant with bad or no credit pay high transaction fees. Type of content/product sold. Some products attract high returns and chargebacks. Adult credit card processing companies are aware of the fact.

Why Not Set Up An Adult Merchant Account For Your Adult Website?

It allows you to collect payments from your regular and new clients who wish to pay via credit or debit card. With the adult merchant account payments will come to your business bank account. Quadrapay works with many International adult merchant account providers. Our team can help you find reliable rates for your adult eCommerce and video store. Getting merchant services for the adult entertainment industry has recently become very difficult. In this, in-depth researched page we will find.

Hard to find information that will make it easier for you to get a merchant account for your adult business.

  1. Documents needed to get Adult Friendly Payment gateway.
  2. Website compliance Information for Adult Merchant Services.
  3. MCC Codes that may apply to your adult business.
  4. General Rates for Adult Credit Card Processing.
  5. Details of ACH Payment processing for Adult Merchants
  6. Simple ways to integrate Adult merchant account with Woocomerce.

Adult Industry Insight – Why Merchant Service companies Can’t Ignore Adult Shops.

Online adult industry gets massive viewership because of internet connectivity over mobile devices. There are nations where porn is illegal still videos may be accessed on the internet. Online adult entertainment websites offer recorded videos for free and for a cost. These sites generate profits in 3 different ways.

  1. Premium Subscription. One Time Payment/Reoccurring Payments.
  2. Advertisements/Monetization.
  3. E-commerce Sales. Sales of Adult DVDs, Magazines, Toys and related products.

As per a recent market research by IBISWorld the industry (Source) will grow at the rate of 10.4%. As per the report, the industry can touch a revenue of $568 Million USD by the year 2023. This industry also offers a massive earning potential for the employees. As per the report, 103 businesses in the US use 785 people as employees. This results in massive financial freedom for people involved in the adult industry. The earning potential is very high in this sector.

Getting An Adult Entertainment Merchant Account.

Many offshore payment service providers are OK with adult industry merchants. They are fine with evaluating applications from startups and experienced adult content merchants. These adult payment processors know that every application has a different risk profile. These adult credit card processors perform an individual assessment of each application. Quadrapay has established the relationship with many reliable merchant acquiring institutions. Some of these are comfortable in on-boarding merchants for the Adult Industry.

KYC Documents For Adult Credit Card Processing.

Payment Processors for adult-oriented merchants need these KYC documents. Merchant must send these documents at the time of application. To improve approval possibility we recommend you to send all KYC documents at one time.

  1. Legal Business Proof of the Adult-Oriented Company. This includes the business license. If it is a company then you should also share the AOA and MOA.
  2. Depository Bank Cancel Check or Letter of Good Standing from the banking institution.
  3. Electricity/Water/Internet/Telephone bill in the name of the company and directors.
  4. Business Plan(Optional but it helps)
  5. Organisational Chart (Optional. helps the underwriters to gaze the professionalism of the company)
  6. Last 4 Months Processing Statement from current adult merchant account acquiring institution.
  7. Non Expiring access to the website. Adult Payment Gateway company requires this. As a merchant, you should not disable this id and password. The processing company checks the content of the site at random times.
  8. Declaration about the Age of models, Licences and the type of content. The merchant can request the adult payment processing institution for the letter format.
  9. Apart from the above-mentioned documents, the processors may ask for more documents.

Website Compliance For Adult Oriented Credit Card Payment Processors.

  1. The website should not host or promote violent content.
  2. The website should not display content of any models that are below the age of 18 at the time of video production.
  3. The website must have an SSL Certificate
  4. Age Disclaimer is mandatory in the format like. “U.S.C. 2257 (or in the relevant nation) all models over 18 on all the pages of the website”. This adult site disclaimer should be on the footer section of the website.
  5. Age verification questions for the first time visitors. Visitors should get a notice to exit the website if they are below a specific age as described by the processor.
Why A Payment Processor For Adult Industry May Decline Your Application.

The adult porn merchant account application can fail because of many reasons. We have listed a few of these but in reality, many other factors can affect the applications fate.

  • Legal Age of the performers or Models is lower than 18.
  • Prohibited terms visible on the content of the website.
  • The displayed content is a violation of Local laws and Card scheme guidelines.
  • The website promotes violence or act of sexual violence.
  • Content on the website is immoral as per the laws in the relevant nations.
  • NO EU Business License – The EU based processing companies need the merchants to have an EU entity. Merchant must get an EU company before the start of transaction acceptance.
  • Failure to Pay the High Risk Registration Fee for Card Not Present Transactions. Card brands may need adult merchants to enroll in high risk registration program. If the fee is not paid by the adult merchant then the application may be immediately declined. The annual cost of high risk registration may be between $500 to $1000. Card Schemes may increase the high risk registration fee in coming years. Kindly contact adult credit card processing company for the actual cost of registration.

Note:- You may not need registration if the application does not qualify in specific MCC.

What MCC Codes Do Payment Processors Use For Adult Merchants.

Merchant classification code used by the adult friendly payment gateway company varies. Here we have a list of the most prominent MCC codes that adult merchants may qualify for.

  • MCC 7841. Generally used if the merchant is in the business of renting video tapes.
  • MCC 7829. Used for merchants in the business of selling business to business video.
  • MCC 7994 Used for merchants that offer games. Some adult game merchants may qualify for this code.
  • MCC 7273. Used for merchants providing dating and esort services online.
  • MCC 5967. Audio Text, Video Text and digital content merchants may qualify for this MCC.
  • MCC 5735. Merchants renting video tapes may qualify for this MCC.
  • MCC 5815. Used for merchants in the business of selling digital goods.

MCC depends on the kind of product or service offered by the merchant. The adult payment gateway company may choose one of the above or any other MCC code. Correct MCC helps the processing company to identify the correct fees and terms. The merchant can ask the processor about the chosen MCC after the Pre-approval of the URL.

Merchant Services For Adult Products.

Getting an adult merchant account for selling adult products is a big challenge. Still, many offshore payment processors may help you with credit card processing account. Most of the time the Payment Gateway company will say no to this industry. There can be many reasons for the same.

  1. They don’t onboard High Risk Merchants
  2. They do not want their brand name to link with this industry because of reputation risk. Payment Gateway companies spend hundreds and thousands of dollars in branding. They may not want their brand names to come any closer to the adult entertainment industry.
  3. Previous bad experiences.
  4. Traditional banks and payment service providers prefer to work with low-risk industries. Low-risk accounts don’t attract a lot of refunds and chargebacks. Adult industry attracts a high chargeback to sales ratio.
  5. No control over the content of the adult entertainment website. This is one major factor why merchant account providers don’t prefer this industry. They have hardly any control over what video or audio content is being streamed. The streaming content of performers less than a specific age is illegal by law. In govt agencies find instances of law breaking then PSPS may also attract penalty.
  6. Some countries prohibit adult entertainment business by law. Many countries prohibit the exchange of adult content in any mode online and offline.
  7. Banks and Payment Service providers don’t like legal battles. They prefer not to touch these kinds of industries.
  8. Some bank may have terminated your merchant account for adult services in the past. Processors close many of these accounts because of violation of COPA. 

High Risk Direct Adult Merchant Account

Some payment processors in Europe are ok with this business model. They approve some accounts for online adult entertainment. Merchants get paid at regular intervals as per the terms of the acquiring agreement. Merchants can accept credit card payments for membership, Trial, and Subscriptions.

Full Integration support of High Risk Adult Merchant Account

Our Team will work with you throughout the onboarding and integration process. Most of the accounts go live within 7 days. Some accounts may take a bit longer. This happens because the underwriting team wants to investigate more on specific accounts. Bad credit merchant can find it more challenging to get account approval. Most of the times we get a positive response from the processors. Sometimes we may get a negative response. In these cases we recommend merchants to use electronic check payment gateway.

Accept Recurring Payments with Adult Payment Gateway.

Feel free to charge for one-time service or monthly subscription. You can also accept Trial Subscription payments. ACH can help as domestic USA card processors are against this industry. With ACH payment processing adult merchants can accept payments over websites and phone. The API integration ca

Accept Major Credit Cards on your adult website.

Start accepting credit and debit cards from all major card brands. Processing companies offer various card brand acceptance. These include well-known Credit, Debit and Gift Cards. Some processors also offer the acceptance of local and national card brands. If your website attracts traffic from Latin America and China then we can help you with AMP. The alternative mode of payment allows you to accept local cards. Quadrapay can connect you with a reliable card processor in Latin America.

Multi-currency Payment processing for Adult Merchants.

Our solutions offer multi-currency acceptance. With the European solution, buyers can make purchases from 100+ Nations. Merchants can get settlements in more than 20+ currencies. With the Woocomerce based websites, merchants can accept orders in various currencies. Businesses from the below-mentioned categories can apply for a direct adult merchant account. Merchant services for adult industry is a bit costly. You will pay higher fees than any low-risk merchant. Still, the revenue will help in covering the cost. Most common products and services sold online using adult merchant account are listed below.

  • Adult Toy Shops
  • Dating and Video Chat Website and Apps
  • Phone Chat Lines – Don’t confuse with phone Sex.
  • Personal Pleasure Services
  • Strip Clubs
  • Adult entertainment websites
  • Adult Erotics
  • Online Adult Entertainment Companies
  • Online Payments for Adult Magazines
  • Payment solution for adult merchandise
  • Escort Services listing websites
  • Websites that sell products like Masturbators, Sex Dolls, Penis Enlargement Tools, Condoms, Sleeves, Cock Ring, Flesh Lights, Prostate Massager, Vibrators, Dildos, Realistic Toys, Strapon Toys, Massagers and Pumps.

Wіll A Merchant Account For The Adult Website Do You Any Good?

Of Course, it does, these days it has become a must-have especially those people who are always on the go. As for your business, it will definitely help its growth by increasing profitability. It will free up wasteful time you spend on confirming payments from your clients. You do more important things like thinking of ways to advertise adult services. You can get an adult merchant account from offshore payment gateway companies. These processors are from Europe. As per the local law in few European countries, they allow this industry type. Some limitations do apply. To set up a credit card merchant account you can coordinate with your local bank. If they offer merchant services to this industry. Most large banks may not be ok with this industry. Quadrapay will take your application to a High risk merchant account provider.

These Credit card processing services come with great features. Depending on the type of account you want to set up for your business. Some of the merchant account types include

  1. Direct Adult Merchant Account
  2. Offshore Adult Merchant Account
  3. Aggregated Adult Merchant Account

Payment Gateway That Works With Adult Entertainment Industry.

Most of the times the PSP will offer a hosted checkout option. If the PSP allows you to use another gateway then we have only one recommendation. Authorize.net. This is one of the most robust payment gateways that we can recommend. Authorize.net allows you to connect many merchant accounts. The best part is it also offers the echeck facility. The setup and the monthly cost is very low if you compare with other gateways. We can recommend Authorize.net as the topmost payment gateway for your industry.

Chargebacks Are Big Problem Of Payment Processors For Adult Industry.

It is common to see payment processors for adult industry experiencing high chargebacks. Like any other PSP these processors also take measures to reduce the chargebacks. Common steps that processors take to reduce chargeback ratio are these.

  1. Low Monthly Sales Volume Capping for Adult Merchants. An effective way to keep the credit risk low is by offering a low monthly sales volume capping. The merchant account agreement displays the monthly capping. The adult merchant should never cross this limit. Many times this is a reason for account termination.
  2. 3DS. 3D Secure Filtering for Adult merchants help the processors to reduce fraud. Customers type in a one time password or secure password for the transaction to go through.
  3. AVS – Address Verification System. Payment Gateway matches the billing address with the one that is on the credit card account. This also helps adult processors in reducing fraud to a huge percentage.
  4. Dedicated Billing Support Information on Adult Website. Processors direct merchants to display the billing support number of the processing company. This is common to find on porn sites, escort listing sites and adult toy sites. This helps the acquiring institution in resolving billing related issues with ease.
Timeline To Get A Payment Processor Say Yes For Adult Oriented Site.

The processor conducts a review of the application and KYC documents. Specialist processors on-boarding adult oriented sites may ask for more documents. Most of the times accounts go live within 3-5 business days. Based on our experience most of the delay is from merchant. Processors may ask for modifications on adult site. If it takes time then the application may take longer time for approval.

Features Of Adult Friendly Payment Gateways
  1. User Interface. Adult friendly payment gateways have to offer advanced features to stay ahead. Gone are the days when merchants used to compromise on features. Most adult friendly payment gateways offer rich user interface. These payment interfaces are user friendly and are mobile responsive.
  2. Subscription Payments. Many Adult sites offer monthly subscription packages to members. These reliable adult friendly payment gateways offer monthly billing option. With subscription the card is charged on a monthly basis for a specific amount. The customer must be aware of the recurring charge. If the member is not aware then this can create a spike in the chargeback to sales ratio.
  3. Video On Demand. Many Adult performers record videos and sell it online with video on demand feature. This offers massive earning potential to the adult entertainers. With VOD members can immediately download the recorded video after making the payments. VOD feature can also be used for live streaming by adult entertainers.
Top CMS Platforms That Work With Adult Merchant Accounts.

This is the age of dynamic web projects. About 2 decade ago most of the adult performers used to have HTML based static websites. Now to rank high these performers use CMS driven website. WordPress with Woocommerce is a perfect combination. It works very well with most of the adult merchant accounts. Most merchant account processors offer free woocomerce plugin. To get started the merchant has to upload the plugin and activate it. Quadrapay has a tech team that can assist our merchants with integration.

Why Many Processors Do Not Offer Adult Merchant Services.

PSPs prefer to stay away from the industry because of 3 risk factors. These are Credit Risk, Reputation Risk and Regulatory challenges. Credit risk originates if the merchant fails to handle returns. Reputation risk hurts the financial institutions brand reputation. Regulations vary depending upon the location of the merchant and the processor. These are the key reason why many processors do not offer adult merchant services.

How To Load Balance An Adult Payment Gateway.

Load balancing is a deep fintech terminology. From a merchants point of view it means splitting the monthly sales volume on many MIDS(Merchant IDS). Many Adult Payment gateway may offer 1 MID per URL. If the merchant has many urls then they may apply for more mids. This way they can split the monthly sales volume. They can protect the merchant account by not crossing the monthly capping.

How To Charge Customers Using Adult Entertainment Merchant Accounts?

Most of the adult entertainment websites offer subscriptions to merchants. You can integrate the adult merchant account using the API integration method. Members can make the payments by using well-known credit debit cards. Most processing companies do not accept corporate credit cards for this industry type. Woocommerce can be helpful in setting up the pricing of each membership package.

How To Get Porn Merchant Accounts?

The process of getting a merchant account for a Porn Site is the same as mentioned above. The website should not violate the terms of card schemes. The website should not violate any local or international regulations. Most porn sites use Porn Merchant Account to sell premium membership. Some websites also offer a 1 dollar or zero dollar trial.

How To Find An Adult Payment Processor That Does Not Charge High Fees?

The merchant services industry works pretty much like the car dealership industry. There may be many parties involved in the approval process of the application. It creates a massive financial burden on the merchant. Quadrapay works as resellers and sales agent with many acquiring institutions. These institutions are generally PSPs and IPSPs. We send your application to these PCI Compliant Adult Payment processors. You will be able to get low rates and faster setup. Send us an email on [email protected] You can also call us on +1 6318321773 from the USA or +44 05603845586 from the UK.

How To Sell Merchant Service For Adult Industry?

We can recommend a simple way to sell merchant service for the adult industry. Create a website that attracts traffic. Get pre-approval of the URL from PSPs. After pre-approval, you can request the merchant to send the application and KYC set. It is the most straightforward approach. To get the commissions, you must be a reseller of the specific PSP.

Vital Laws And Regulations that must be understood by merchants and processors in the Adult Industry.

Digital Millennium Copyright Act (DMCA). Merchants should not involve or support piracy.  The Processors we work with have generally have zero tolrence for piracy.  If they find out that the merchant is involved in piracy the account may be terminated without any advance notice. No Underage Content. Merchants should be always aware that they are not allowed to depict any content of performers or individuals below the age of 18.

Recommended Readings

DMCA

Copa

Adult Industry Healthcare Foundation

Note:- The Above stated information is true as per our limited understanding but it may certainly have many errors and shall never be considered accurate. We do not guarantee the accuracy of the above-stated content.

Disclaimer:- Adult Merchant Account solutions are not available for merchants from India. PSPs for this industry are not located in India. This is a prohibited industry in India. We don’t accept applications from Indian merchants for this industry.

Feel Free to Get in Touch with Us.

Quadra Services
#4 FF-A Block Omaxe Gurgaon Mall, Sohna Road Gurgaon Haryana India 122018
+44 05603845586(UK)
+1 6318321773(USA)
Skype – Netcaller