Page 7 - Payout Magazine Online Volume 8.4

Adult Billing:

The BesT PracTices &

Technology

uccessfully applying for a merchant not-present (CNP) transactions, which are It’s important to note that should an adult-
Saccount has been described as a painfully transactions that have the card details oriented business be approved and accepted,
drawn-out process for even “traditional” recorded manually without the card being the fees applied to high-risk accounts are
businesses. However, a merchant account swiped, or even being present at the time much higher than normal rates. Therefore, you
for an adult-oriented business can often of the purchase. For these reasons, many need a provider who is fluent in the industry
seem like a never-ending series of hoops the merchant vendors will refuse to provide credit you operate in, specializes in high-risk
business owners are forced to jump through card processing facilities for any business accounts, and can provide a reliable solution.
before they are given access to merchant servicing the adult industry.
services.
Being classed as a high-risk business and
However, with the growth of the adult gaining a merchant account can be a daunting
The credit card processing industry often
views adult businesses as shady operations online entertainment industry merchant proposition, but once you are provided access,
and high risk for many reasons, but the accounts are a necessary service to do you will need to be diligent in protecting your
main sticking points are concerns that the business. Without one, it would be challenging account from fraudulent practices.
business may be a front for illegal activity, to compete in the marketplace and remain
or the merchant account will suffer from an a viable concern. In the U.S. alone so many Many adult-oriented businesses, especially
inordinate number of chargebacks. transactions are completed via credit cards the pre-dominantly online variety, operate
that the associated processing fees are now in the international space, a challenging
As well, adult-oriented businesses the second highest operating cost for most scenario all on its own, but one which also
statistically have a higher rate of card- small businesses. requires multiple layers of fraud protection.

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