We are going to break the real truth for you, and it is simple: there is no one “best” payment processing solution for Tarot readers and astrologers.
The best solution depends on many factors, such as your monthly sales volume, the service model you implement, and the location where your company is incorporated and the location where your clients are.
It is also worth noting that most major processors will either refuse you or end your service after your first chargeback spike. Card networks and most payment service providers, they all say and think that tarot and astrology are high-chargeback industries because they don’t involve a physical product that can be delivered.
If you’re just starting out in this industry and you are only making a small amount of money, like $500 to maybe $2,000 per month, then you may be able to easily get approved by popular flat-rate payment gateways. As long as you keep your transaction amounts small and keep good service records, such accounts will work in most cases, but as soon as you reach a certain level or get even a small chargeback, which is actually unavoidable in this industry, then in most cases you’ll be fired.
You will need a high-risk merchant account from a specialised PSP that really knows about spiritual service operations in order to process payments in a way that is both sustainable and growth-orientated.
It’s easy to understand why mainstream processors don’t allow this type of transaction. customers dispute charges by simply saying things like “the reading wasn’t accurate” or “I didn’t feel like it was real” or “I changed my mind.”
If you look from a processor’s viewpoint, they cannot decide if a tarot reading was really good or not, so they most of the time side with the customer. The payment industry has marked almost every type of spiritual service as a type of purchase that is likely to lead to buyer’s remorse disputes.
In response to such situations, most acquiring banks have stopped covering the category altogether. But please note that It is not a flaw in your business model, but it is a structural bias in the payment system that you are up against. For best results, do not hide what you do, and try to find and work with processors that have made risk frameworks just for your type of business.
A dedicated high-risk merchant account provider that works with spiritual practitioners is certainly your best bet. Such payment processors usually charge 2% to 4% plus a fee for each transaction. Yes, you are right; this rate is higher than the norm for retail, but it is reasonable given the risk such PSPs handle. Also be ready for a hold back of 5% to 10% as rolling reserves for up to 6 months.
When looking at a provider, you must ask yourself if they have experience with astrology, numerology, psychics, mediums, clairvoyants, palmists, faith healers and tarot professionals. Can they give you the names of other spiritual service providers who have worked with them… like asking for industry references?
How much do they handle when it comes to chargebacks before they lock your account?
If you get flagged, how do you appeal? What is the process, and does the appeal ever work?
A hybrid approach might be best for you if you need cash flow right away and want to be flexible as well. Use a high-risk payment processor for most of your transactions, but also try to add other ways to accept payments like ACH, e-check, Interac, direct debit, and cryptocurrency all of these alternative modes have much lower chargeback risk.
Think of setting up subscription or membership models where customers pay in advance for monthly or yearly readings. This way your customers will deposit funds in the beginning, and they will use credits as per their requirements and get the sessions. Some of the finest spiritual companies use this method. This helps with cash flow and also helps in reducing chargeback risk because users get the sessions and horoscopes in steps. By implementing smart processes, you will get recurring revenue and longer customer relationships, which will naturally lower the number of chargebacks.
If you have international customers, then it will help if you look into UK and EU acquirers because they tend to be a little more open to spiritual services than US based payment processors. In short, get a payment processor that is made for your type of business and not a platform that works for everyone.
Feel free to contact QuadraPay if you need a merchant account for spiritual services.