One of the most lucrative merchant industries in the online market is the Adult or Porn business. Online businesses providing this service are categorized as ‘High Risk’ merchants simply because of the legal age restrictions and the controversial content that are available for purchase. Adult merchant accounts are often costlier than other types of merchant accounts because they carry a higher risk of credit card chargebacks and also of costs. The companies involved have certain risks attached, from insurance costs due to lawsuits, to the possibility of illegal content and the risk of being shut down before the merchant account provider can receive payment.
This tag has caused the number of online payment solutions for the Adult industry to decrease. Acquirers often feel skeptical to accept businesses in this nature and often require proper credit history. Even if they do approve of such accounts, the fees would be astronomical. Because of this, merchants have to either increase their prices or lower the quality of their services to maintain his usual profit margin. However, compromising on quality or raising the price will certainly result in loss of customers and consequently adversely affect his bottom line.
One way to avoid this is to obtain a perfect solution for their business which offers a comprehensive package for the merchant. For Adult merchants, a standard set of features must be available with their processing solutions. No volume restrictions, recurring-billing, free-trial processing, and multi-currency conversion should all come included in Adult Merchant Accounts. Finding a solution that can offer all of this can be difficult, but will ensure the long term success of an adult business.
Categories of Adult Businesses
Typically there are two options for membership fees payment in the Adult related business. The first is a monthly or recurring membership, in which the laid down fees are received every month. The other is the one-off payment method that involves onetime payment of a specific amount.
Both the categories have their pros and cons. The monthly membership fees pattern guarantees a sizeable income every month. On the other hand, the one-off types can be instrumental in forming a good clientele base. A group of loyal customers can always bring excellence and esteem to any business. Due to these very reasons, the adult services providers always prefer to have both the types in their fold for maximizing their income.
The typical product sold in the Adult category is pornography. Certain content are not allowed by the Card Associations as they are labelled as disturbing, violent, and un-humane. Below a list of content which are prohibited for Adult businesses :
- Non-authorized celebrity content,
- Necrophilia (sexual attraction to corpses or the dead)
- Bestiality or Zoophilia (sexual attraction between human and animals)
- Incest (sexual attraction between family members)
- Pedophilia (Child or Teen pornography)
- Anything depicting violence and/or non-consensual activities
- Anything depicting sadistic behavior
- Anything promoting hateful activities such as racial prejudices, etc.