Adult businesses usually encounter headwinds when setting up a merchant account. Most banks find the adult industry high risk because of the increased risk of chargebacks and fraud associated with their transactions. Banks working in the high risk industry continually monitor each of their adult merchant accounts for compliance with the card association guidelines. Violations of their terms or any legal guidelines can be very costly and detrimental to a bank. This is why all adult industry businesses need the services of a high-risk payment processor.
At Allied Payments, we specialize in adult credit card processing services for merchants operating e-commerce and retail-based adult businesses. By completing a short application and supplying a few supporting documents, businesses can be set up relatively quickly with adult merchant service. Upon approval, the merchant will receive access to their adult payment gateway which will allow for both online and manual payment processing. Adult merchants will have the ability to accept all major credit cards while receiving quick payouts directly into their business bank account.
What is an Adult Merchant Account?
An adult merchant account is a banking service used by merchants in the adult industry. Adult industry merchant accounts help businesses to accept credit card or check payments online or in person. Operating identically as other types of payment processing, these accounts are underwritten with the knowledge that the businesses using them will not be traditionally what banks see.
How an Adult Merchant Account Works
All merchant accounts, even merchant accounts for the adult industry operate using the same systems. Though the banks or payment processors might be different, the way a credit card is processed is identical regardless of the companies involved.
When a customer enters their card information into a payment gateway or swipes it into a card terminal, account information is from the merchant’s bank through the payment card network to the customer’s bank. The customer’s bank will respond to the merchant with either an approval or denial of the transaction.
Working with US-based banks, merchants will receive daily settlements to their accounts. This is not the case with many high risk payment processors who sent weekly or bi-weekly payments.
How to Open an Adult Merchant Account
Businesses that are applying for a payment processing account will generally need to provide most of the same information regardless of the account type.
After completing an application, the bank underwriters will begin their review and require some supporting documents. Businesses will need to provide ID, banking information, and occasionally information on the business. Other documents are used to demonstrate the health of the business and the financial requirements of the merchant.
Required Documents include:
– Copy of ID
– Voided Check
– Recent Processing Statements (depending on business size)
– Recent Bank Statements (depending on business size)
– Corporate Documents (varies by bank)
Common Types of Adult Merchant Accounts
The adult industry has been expanding exponentially with the growth of the e-commerce industry. New adult businesses have continued to start online and the trend sees no slowing. One of the most common problems shared by these companies is the difficulty in establishing adult credit card processing services.
There are many different types of businesses that fall into the adult category. While many are not subscription services, the scope of the industry is far-reaching.
Adult businesses can include:
– Adult Toys
– Adult Novelties
– Adult Dating
– Online Dating
– Streaming Video
– Online Photo Galleries
Having adult products credit card processing from the beginning will prevent many problems in the future with banks and processors. Many payment processors do not have the ability to set up adult industry businesses and ultimately apply those merchants for accounts that are destined to be shut down. This does not help businesses and in fact, can hurt them. Whether it’s having their funds helps for extended periods of time or having their name attached to a fraudulent application, this can become a serious problem. Allied Payment’s banking network allows us the ability to work with high-risk companies including adult merchants.
Regardless of the location or type of adult business, there are many different options available today to accept payments.
Adult Credit Card Processing
The most popular form of payment used by customers and requested by merchants. Allied Payments provides access to the major credit cards through our FDIC-insured banks, assuring that transactions and deposits are always safe and secure.
The most common payment service options for credit cards include:
– Online Payment Gateway
– Storefront Credit Card Terminal
– Mobile Application Support
With Allied Payments, businesses have the ability to set up adult merchant accounts with any of these methods. Our software and hardware solutions allow for complete flexibility when accepting payments.
Other types of Merchant Services for Adult Businesses
Allied Payments has a variety of payment options. Our payment solutions include some of the newest products for non-credit card payments including check processing and crypto payments.
These payment methods have been growing in popularity over the years as consumers become more familiar with how they operate.
Not only do these solutions provide an alternative payment method, but they are also lower cost and offer the same or faster settlements than credit cards.
Payment Gateway for Adult Merchants
The Allied payment gateway has an industry-leading 99.99% uptime, providing our clients the reliability required to operate their business merchant accounts without concern. In addition, businesses generally see an increase in ordering and payment acceptance rates with the high risk gateway.
When transactions are processed, either by your customer online in the gateway or by the merchant through the virtual terminal, approvals are only seconds away, eliminating long delays or timed-out transactions. This significantly helps customers looking for immediate checkouts with minimal friction.
Helping Reduce Fraud for Adult Merchants
Fraud is always a concern, not just for adult merchant accounts, but for all types of online businesses. Our team has partnered with the most experienced e-commerce companies to provide in-depth fraud prevention tools to reduce and nearly eliminate all types of online fraud; especially chargeback fraud.
Merchants are able to customize all aspects of their fraud prevention tools to find what works best for their business. Having a one size fits all fraud prevention program is less effective when lumping businesses together across multiple industries that can experience different types of chargeback or other fraud.
Depending on the location of your customers, a business can automatically block transactions based on their geographic location, the number of attempts made, and the cards used to reduce the chargeback risk. Finding the best solution that works for your business is the best way to maximize revenues.
Finding the Best Adult Payment Processors
Ever wonder what credit card companies will work with the adult industry? At Allied Payments, we work to provide adult industry payment processing services at the lowest prices. Using USA-based banks, merchants can rest assured that their funds are safe and will always be settled in a timely manner.
After an adult industry merchant is approved through Allied, merchant credentials and account logins are created and sent to the business. At this point, the merchant and their technical support team are able to begin configuring settings. If merchants ever have questions or a problem, our staff is available to help with everything from merchant account management to fraud protection tips.
An adult merchant account needs to remain reliable and stable for it to help grow a business. Our support department will assist business owners with every phase, from application to integration while supporting your credit card processing and payment processing afterward. The support team responds to all inquiries quickly and around the clock to make sure your business gets the help it needs from it’s payment processor.
Apply for an Adult Business Merchant Account Today!
Our team has built a network of banks that specialize in accepting high risk adult merchant accounts. With several banking options, adult industry businesses can be assured that they will be quickly approved and set up without trouble. Normal approval takes 3-5 days and requires only a simple application package for most merchants. Higher risk merchant businesses that choose to work with Allied Payments will be partnering with one of the fastest setup processes and one of the quickest payout schedules in the industry. Contact our office today and speak with an adult merchant account executive.
Frequently Asked Questions (FAQ)
What is an adult merchant account?
An adult merchant account is a specialized type of payment processing account designed for businesses operating within the adult industry. These include websites offering adult content, webcam services, dating platforms, novelties, or other adult-oriented products and services. Due to the nature of the industry, adult merchants are considered high-risk by traditional banks, which is why a tailored solution is required.
Why is the adult industry considered high-risk for payment processing?
The adult industry is classified as high-risk due to factors such as high chargeback rates, legal restrictions, age verification concerns, and the potential for reputational risks. These complexities make traditional processors hesitant to approve adult businesses, which is why high-risk merchant providers like AlliedPay specialize in supporting them.
Can I get approved for an adult merchant account if I run a startup or new business?
Yes, AlliedPay works with startups and new businesses in the adult industry. While having a strong processing history helps, it’s not a requirement. Our team evaluates each application based on factors such as business model, compliance, and website readiness.
What types of adult businesses does AlliedPay support?
We provide merchant services for a wide range of adult businesses, including but not limited to:
- Adult content websites (subscription or pay-per-view)
- Live webcam platforms
- Adult toys and novelties retailers
- Online dating websites
- Fetish or kink sites
- Adult lifestyle memberships and events
How long does it take to get approved for an adult merchant account?
Approval times can vary based on documentation and risk evaluation. Most adult merchant accounts with AlliedPay are approved within 3 to 5 business days once all required information is submitted.
What documents do I need to apply for an adult merchant account?
Typically, you’ll need:
- A government-issued ID
- A valid business license or incorporation documents
- A voided business check or bank letter
- Website URL (must be live and compliant)
- Proof of domain ownership Additional documents may be requested depending on the nature of your business.
Does AlliedPay offer chargeback protection for adult merchants?
Yes, we provide chargeback prevention tools and dispute management support to help adult merchants reduce the risk of chargebacks and protect their processing stability.
Are international adult merchants accepted?
Absolutely. AlliedPay works with both U.S.-based and international adult merchants. We offer global processing solutions and multi-currency support to help you grow your business worldwide.
What payment methods can I accept with an adult merchant account?
You can accept a variety of payment methods, including:
- Credit and debit cards (Visa, MasterCard, etc.)
- ACH/eCheck payments
- International payments
- Recurring billing for subscription models
Is my adult business information kept private and secure?
Yes. At AlliedPay, we prioritize discretion and data security. All sensitive information is encrypted, and we strictly adhere to PCI compliance and data protection regulations.
They’re a well-run, trustworthy company, and every time I’ve reached out with a question, they’ve been thorough and thoughtful in their responses. You can tell they truly care about supporting their clients.
Our business is often considered “high-risk” by many processors, so finding the right partner can be challenging. These guys made the whole experience smooth, and I feel very confident working with them.
If you’re a business owner looking for a solid, reliable merchant services provider—especially if your needs are a bit more specialized. I highly recommend them.
Thank you Charles
