High Risk

High Risk Credit Card Processing for the Adult Entertainment Industry

In the U.S. alone, the craze for adult content continues to boom with steady growth, making the adult entertainment industry extremely financially profitable (some researchers suggest it’s up to a $97 billion industry globally). Merchants in the adult entertainment industry are under pressure to meet customer demands in regard to both products and services, while also ensuring the whole customer experience is both simple and pleasant.

Unfortunately, even after following strict rules and regulations, merchants often find it difficult to simplify the sales transaction process due to difficulty finding an adequate credit card processing solution. Many processors avoid the industry due to the negativity and controversial content that surrounds the adult entertainment business, along with the complexity of navigating the legalities involved.

Why Is Adult Entertainment Considered High Risk?

There are a variety of niche markets in the world of adult entertainment, which encompasses a vast array of products and services that fall into several categories. For example: everything from videos to gentlemen's clubs to webcams to escorting services are all part of the adult entertainment industry. This degree of variance contributes to a high-risk classification since all processors don't support all categories. In addition, selling items that have age restrictions along with other legal tightropes means merchants in adult entertainment fall into a high-risk category.

When products and services, such as escort services, are questionable in terms of legality, this increases the likelihood of being high risk, and banks often deny setting up a merchant account. Plus, in the digital age we live in, so many transactions take place online and, like any card-not-present transactions, banks recognize the additional security fraud risk. Adult entertainment companies, along with any business that provides subscription-based or pay-per-minute services, are generally considered high-risk clients.

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Another contributing factor is the consensus that customers of adult entertainment merchants are notoriously disputing charges. This problem has long been the bane of the adult entertainment industry. No bank wants to be forced to issue a refund, and chargebacks are far too common. Regardless if the dispute originates out of embarrassment or mistake, excessive chargebacks are frequent, and this is why many merchants' accounts are shut down.

Things to Look for in a Payment Processor

When searching for a processor for a business in the adult entertainment industry, to save a great deal of time and effort, it's a good idea to find one that clearly states adult entertainment merchants are accepted.

As previously noted, chargebacks are far too common in the industry and can be detrimental to profit margins, which is why it’s wise to find a processor that offers chargeback protection tools. In addition, implementing a system that verifies the age of customers helps curb unauthorized transactions while reducing risk and retaining profits. Last but not least, finding a processor that offers on-demand assistance when you need it demonstrates a desire to help you identify potential threats and a willingness to maintain an open relationship with merchants.

The adult entertainment industry demands a high risk payment processor that understands and offers the necessary resources to help a business grow while meeting the industry's specific requirements. With BankCard, you get free equipment, no long-term contracts, and a processor that specializes in high risk and is committed to providing total transparency in the billing process.

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