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Adult Merchant Accounts
Category Merchant Account News
Adult Merchant Accounts
If you are considering providing online adult merchant accounts, you will need a different merchant account from say an antique dealer. You will find that merchant account providers are quite leery to offer an online adult merchant accounts supplier a merchant account. The reasoning behind this is the fact that those who need adult merchant accounts are thought as very high-risk merchants.
Interestingly enough, it is easier to obtain a merchant account provider if you are an online pharmacy than one offering online adult merchant services. This is because the adult business is usually highly profitable but it is also very notoriously controversial.
Another reason why adult merchant accounts are considered high risk is due to having a high chargeback potential, and the odds of it closing its doors and actually disappearing overnight may also be considered high. A further thought is that there is so much fraud being perpetrated when it involves online adult merchant services especially those adult sites that require memberships, for instance.
Those offering adult merchant services usually find themselves squeezed into absolutely exorbitant costs and excessive rates in order to process their many sales online. That is if they manage to even find a merchant account.
Of those who do tender adult merchant accounts for those offering adult services, they will find that they and their business are scrutinized very closely, and the company is very carefully evaluated. Following this the credit rating of the company and those within the company will also be assessed.
Sometimes when an adult merchant account company seeks a high-risk merchant account, they may well be charged for reserves. Usually this is a 5% to 10% of every merchant’s agreed volume or at times against the monthly sales volume. These reserve amounts will be held through the merchant processor in order to ensure against losses due to excessive charge backs, merchant fines, uncollected fees, etc.
Ordinarily if a merchant account cannot be managed, then a third party merchant account will be offered. A third party merchant account is one where they will act as a payment gateway for you, in exchange for some exceedingly high fees as well as some very exorbitant percentages.
Regardless of what kind of adult merchant account you are able to acquire, you are guaranteed exceedingly rapid online payment implementation, as well as being able to accept the main credit card types. Interestingly enough many of these third party merchant account processors will only accept businesses that sell “digital” products – such as subscriptions to password protected websites and such, thus making them perfect for adult merchant accounts.
The transaction fees that are paid to this third party merchant in conjunction with each sale made is very high, especially when contrasted to having your own merchant account. There is one saving grace though, when your sales reach an agreed upon plateau, then you will be allowed your own regular merchant account. At least when you do manage to have your own regular merchant account it will lend an air of professionalism to your adult site.
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