The adult entertainment and escort services industry have undergone changes in recent years, thanks to the internet and digital technologies. Today, people interested in these types of entertainment and services can search and find what they want online. As such, businesses specializing in this market segment need to ensure they have an escort services merchant account.
Why Does Your Adult Entertainment Business Need a Merchant Account?
In order to compete in e-commerce markets and conduct electronic transactions, you need a dependable merchant account to accept payments. A customer is not going to want to have to mail in a money order or check and wait for that to process to complete their transaction. In fact, running the business in this manner often makes it difficult to compete with other online businesses.
Being able to provide your customers with the option to pay with debit and credit cards or ACH payments allows you to attract a larger customer base. In addition, it gives your customers the choice to choose how they want to pay for their adult entertainment services.
What Types of Businesses Are Classified as Adult Entertainment/Escort Services?
There is a wide variety of different businesses which can be classified in this particular category. Some of the more common entertainment and services include:
- Streaming Adult Videos
- Webcam Streaming Services
- DVD and Blu-Ray Adult Videos
- Adult Books and Magazines
- Adult-Related e-Books and e-Magazines
- Adult Stripping/Bachelor/Bachelorette Party Services
- Adult Entertainment Venues
- Adult Dating Services
- Toys and Accessories for Adults
How Difficult Is It to Get a Escort Services Merchant Account?
Due to the nature of this industry and the various types of products and services, many merchant providers refuse to offer debit card, credit card, and ACH processing. In fact, businesses within this industry are considered high risk for the following reasons:
- High Chargeback Rates – Some people will try to cover up their purchases from their spouse and may dispute them or the purchase was made using someone else’s card (i.e., fraud).
- High Number of Non-Swiped/Non-EMV Transactions – A large number of transactions require the customer to enter their card information online.
- Potential of Illegal Transactions – Some businesses in this industry offer entertainment or services considered illegal or use the operation as a front to launder money.
- Number of Business Closures – Business within this industry come and go at a fast rate. In addition, some are forced to shut down when they are found violating state and federal laws.
As you can see, even though you are operating a legitimate and legal business in the adult entertainment and escort services industry, the above reasons can make it difficult for you to find a provider willing to consider your application for a merchant account.
Fortunately, this is not an issue when you apply through Leap Payments. We understand how to provide a high-risk escort services merchant account and the businesses that are considered high risk, including escort services. We work with you to determine the most appropriate type of merchant account you require and also provide you with our Lifetime Rate Lock Guarantee! To learn more about opening a merchant account or for further questions, please feel free to contact us at (800) 993-6300 today!
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