Although the industry of adult entertainment is considered as a bit controversial, it is completely legal to open up a website that provides products or services in this niche. The major downside is that there aren’t many banks that would allow you to set up an account as a merchant in the adult niche market since they treat these companies as breaking the law. Some of the commonly spread kinds of adult businesses worldwide which might need to set up a merchant account are presented below:
- Adult bookstores.
- Adult massage salons.
- Adult toys and novelties.
- Online dating sites.
- Strip clubs.
- Online adult clothing stores.
- Escort services.
There are plenty of payment providers on the market offering their services for companies from the adult niche. Below, we have conducted some tips that could help business owners to open a merchant account.
Improve Your Credit
Make sure you constantly increase your credit rating and be aware of any outstanding balances you obtain. Keeping this up will help your credit rating stay stable. As a result, payment providers will see that you are running an admissible business.
Save What You Can
Saving for rainy days is an essential step which can help you to get a merchant account. Don’t forget to verify that you set up a savings account alongside the merchant account and stash some of the income away there. Try to save as much as you can, as this way, a business will look more legitimate to the provider.
Expect To Have Higher Fees
Since adult business is usually associated with high risk, you may be charged more by credit card processors and pay higher fees. However, it’s completely worth it, seeing that more and more people prefer to use credit cards instead of cash when making purchases.
Collect All Needed Documents
When preparing to apply for an adult merchant account, don’t forget that this particular process requires valid papers. The documents which most providers are searching for and which a merchant will need to collect are as the following:
- Merchant’s ID.
- A letter from the bank, or pre-printed voided check.
- Bank statements for the period of the last three months.
- SSN (Social security number) or EIN (Employer Identification number).
Once you decide to apply for a merchant account, be prepared to answer all the questions from the new provider honestly and truthfully. This especially concerns the information about projected processing volumes and average ticket amounts. Don’t try to inflate the numbers because it may be a high sign for the payment processing company.
Show Your Legitimacy
Adult businesses usually have a controversial reputation and many service providers may shy away from them. Try to show them that it’s a legitimate niche and there are lots of potential profits.
PurePay is an adult payment processor that is relatively new on the market, which has anti-fraud measures in place and smart security protocols to ensure you can grow your company in the high-risk industry. Adult payment processing can be extremely easy and intuitive if you pick PurePay as your adult payment gateway.