How to find the right high-risk merchant account tailored for your adult business.

The adult entertainment sector offers a wide array of opportunities for motivated entrepreneurs. As long as you are willing to navigate the complexities of this highly popular sector, you can look forward to handsome profits and a loyal customer base. In order to make that happen, however, you will need to understand why adult businesses are considered high risk so that you can partner with the optimal merchant account provider.

A few words about adult-oriented businesses.

You might be interested in launching a web cam business to sell the content you generate, or you may choose to hire a dedicated team. On the other hand, you might want to open an online adult dating or toys site. Whatever direction you choose to take, one fact remains the same: Your physical or online store will be considered high-risk by the financial institutions who facilitate your payment processing.

You might be thinking that everything you plan to do and sell is perfectly legal, leading you to wonder why your store is being singled out in this way. The answer is that adult-oriented businesses make some lenders queasy for several reasons.

• Higher-than-average rates of chargebacks (when customers ask for refunds from their credit card companies).
• Added state and federal regulations and age requirements.
• Extra potential for legal entanglements.
• Greater likelihood of fraud.
• The reputational taint often associated with the industry.

In one way or another, all of these factors suggest to lenders that you might be less able than the average business to pay your bills on time and may even be more likely to go bankrupt and default altogether.

Finding the best account provider.

Even though your adult business will definitely be categorized as representing a higher-than-normal level of risk, don’t panic. There are plenty of well-respected, reliable high-risk merchant account providers with whom you can partner. As you begin to wade through the deep pool of the numerous competitors in this market, look for the following qualities.

• Transparent pricing. Because of your categorization, the company will charge you higher per-transaction fees and may require you to fulfill other obligations as well such as setting up a reserve account that they can access if you fail to make your payments. Furthermore, you may need to provide additional documents during the application process and wait longer to be approved. However, you are entitled to see all costs before signing any contracts. If they seem excessive compared to competing lenders, keep shopping until you find one you feel comfortable with.
• Experience and expertise. The lender should have a history of working with companies in your industry. When they do, they will be able to help you navigate this specific payments landscape to make processing worry-free.
• Focus on security. The company should make data safety and anti-fraud procedures their top priority, complying with the Payment Card Industry Data Security Standard (PCI DSS) and implementing up-to-date firewalls and other anti-breach protocols.
• Customer service. In this industry, every minute of downtime is money lost. Therefore, you need a company you can count on to respond quickly should problems arise with your point of sale equipment, shopping cart software or payment gateway. Help should be available very quickly during regular business hours or on an extended basis. Moreover, you should also be able to get assistance via email, live chat, user forums, and an online knowledge base.

As you prepare to burst onto the adult entertainment scene, it probably comes as no surprise that this sector is both complex and potentially lucrative. With the optimal payment services provider at your side, you can overcome the obstacles and make your enterprise thrive.