Thread: Adult merchant account

Adult merchant accounts are considered to be in the high risk category. Merchant accounts for most businesses are invariably different from the one required for the adult business.

Every business has its own characteristics, especially with relation to the risk profile it presents. As such, every individual business needs to have a unique merchant account to facilitate receiving online payments through credit cards and checks. The risk-proneness of adult service business tends to keep bulk of the merchant account providers (such as banks and credit card processors) away from adult service businesses.

Payment Methods of Adult Businesses

Normally, there are two types of payment methods available in any adult businesses. These are:

* Monthly/periodical membership fees.
* One-off fees.

Both the types have their advantages and disadvantages. While the monthly membership fees ensure a guaranteed decent income every month, the one-off types help in building a sound client-base comprising of loyal customers, thus bringing quality and popularity to the business. The adult service providers, therefore, tend to allow both the versions in order to maximize their revenue.

Making the Adult Business More Profitable

At the initial stages, adoption of both types of payment methods may cause a little hiccup. Yet, subsequently and in the long run, it will prove useful for increasing one’s profitability. It is, however, essential that a strict vigil should always be maintained on the quality aspect. Once the business breaks even, the adult service provider can seek to expand through advertising on the Internet as well as in other media. This will also be the appropriate time to plan creating a merchant account to facilitate payments through credit card processing.

As mentioned earlier, not many merchant account providers come forward to lend a helping hand to adult service providers. The few that may be inclined a little are likely to charge astronomically with their rates ranging up to 20%.

Paying the account provider 20% of its profit will cause the adult service provider make a number of compromises with respect to his price, quality and also, the bottom line. Since he is not likely to compromise on his quality and charge a higher price that is bound to make him lose many of his customers, the only option open to him is to cut down on his profit. However, no plan is likely to bring the desired results unless he finds a method to conveniently receive his payments online.

The Best Option for the Adult Business and Adult Merchant Accounts

Under these circumstances, the adult service provider should carry out a thorough research on the web to find an agency that can cater to his needs. There are a number of international/offshore agencies that can provide adult merchant accounts with considerably fewer charges – ranging between 4 to 5%.

Since Internet is the order of the day, these agencies do not really bother as to where the business is located. The payments are quick and their system is meticulously streamlined. Moreover, they are known to provide merchant accounts to the adult services industry with an open mind and without any fanfare. Moreover, the adult service providers too find them most convenient to deal with.

With hordes of facilities and options, these agencies are the best bets for any adult service player. Some of the features offered by them are:

* Facilities for both one-off transactions as well as periodic billing.
* Variable billing/rebilling frequencies.
* An option to make use of Total Collect, an exclusive technology that assures to protect up to 10% more subscribers in a year.
* Employment of latest fraud prevention tools/software.

The application procedure is very simple and hassle free. The adult service provider can register himself with minimum of documentation by furnishing information relevant to his personal self and his business and easily get an adult merchant account. Adult merchant accounts are a lucrative business.

Very nice post. I have noticed how EMerchant Pay has been active in the last year and a half. it seems that you executing seamlessly a very well planned Business plan.

Originally Posted by May-Netpay

Hi Kiberlain,


Indeed Adult merchant accounts are considered to be in the high risk category.
Therefore billing companies’ rates are really high and the only option left open to them is to cut down on their profit.
At the initial stages you should definitely check out the rates around many of the payment solution companies. There are many payments aggregator solutions ( the model is such that many merchants share one MID ) and Merchant Account Providers ( PSP- Payment Service Provider which is a direct merchant account – meaning a merchant has his/ her own MID at the acquiring bank and is not sharing it with anyone) as it is very competitive and various between companies. There are many aggregate solution providers which indeed charge you around 20% of your profit, but you should definitely check what they include in the package.
On the other hand, considering your own merchant account (Direct Adult merchant account) is a great option. Both the types have their advantages and disadvantages but the main advantage of having your own merchant account is low rates! Check the rates we offer…Way lower rates between 3.5% and 6% (depends on the monthly volume)!!!

Also by having your own merchant account (direct merchant account):
- Flexibility with risk settings: you will have your personal risk manager that will help you understand together with you the acceptance ratio’s maximizing your income
- you chose your own descriptor that will appear on your customers credit cards statement (which lowers big time the chargeback ratio's )

This is a great option to consider and to take advantage of.

Feel free to contact me if you need further advice


May Yedidya
International Sales

Netpay International Ltd.
Office +972 3 612 69 66
Fax +972 3 612 69 67
Mob +972 52 330 22 23
may@netpay-intl.com
http://www.netpay-intl.com

How long does it take to get a Merchant account?

can you choose the Country's banK?