Crossing the line on any aspect, whether it is a chargeback or delayed refunds or anything, can immediately make the acquirer reject the merchant account application. However, there is no need to worry because some merchant account essentials can save your business from being blacklisted. Yes, the adult entertainment industry has a vital earning caliber, and the majority of its presence on online platforms has made it spread its wings globally. But attention to several essential factors is necessary.
Any merchant from this industry should try to know about them and can take their businesses to new heights of achievements. The vital factors are nothing but an insight into the required business features that an adult merchant should implement. To keep the adult high-risk merchant account safe from issues like chargeback, fraud, merchant account rejection, etc.
Control Excessive Chargebacks
‘Extreme of everything is bad; this saying applies to all aspects of life, including the adult merchant account holders. Chargebacks are frightening for the merchants, and if they increase too much, merchant account rejection is almost decided. It has always been a big issue for the whole industry, and various measures have been invented to deal with the situation. Besides, the adult industry is among the sectors most prone to friendly fraud.
Fortunately, several ways can help prevent excessive chargebacks and increase transparency to save a merchant’s rights. Pay attention to the following as the delay may bring a worst-case scenario making high-risk merchant account providers reject your account application.
Factors that prevent chargebacks are –
- Send email receipts to the customers because it not only helps them identify a transaction, but the merchant can also prove that the payment was authentic and for a reason.
- Use transaction descriptors that describe your company name, product name, billing amounts, and other necessary details. Without it, the customers cannot recognize why and to whom they made the payment, which will raise a chargeback demand.
- Put a compulsion of signatures on delivery – Many adult products are sent to the clients at their doorstep. You should make it a rule that the person who receives the product will have to sign the attached document.
Repair Personal Credit History
Not only the business finances are necessary, but also the personal credit history of the business owner is essential. In many ways, your financial behavior can affect your merchant account. Let us see how things correlate.
The money received through payment goes to the merchant account, and the merchant transfers it to the business account. From here, he uses the money to enhance the sources of his company, and in this process, the funds may reduce thoroughly in the business account.
Imagine a customer raises a chargeback demand, and the payment processor has to remove funds from the merchant’s bank account. But if the funds are insufficient, the acquirer or the processor must reimburse the funds from their pocket. Later they debit the money from the merchant’s bank. It is why the personal credit history of the merchant is significant, and as an adult business owner, you have to take care of your financial records. Otherwise, the acquirer and your high-risk payment processing company may discontinue you.
Your personal credit history can threaten your merchant account in two ways –
- If your personal credit history degrades to a very bad credit score level, the acquiring bank will discontinue your merchant account.
- If your credit score is poor, the acquiring bank may not reject your account, but the rolling reserve may go high.
The importance of personal credit history is ubiquitously similar whether you have a high-risk merchant account in the UK, Europe, Asia, or anywhere on the globe. The reason is that a business earns goodwill through selling quality products or services and its owner’s image. Don’t we all know how the share market goes drastically up and down with a piece of single news about a business owner?
Walk With the Government Laws and Regulations
You will never want to contradict the legislative institutions and all related rules and regulations. The adult industry is already under the sharp eyes of the law due to varied reasons, among which the major one is the age restriction. The governments of all nations are very serious about stopping minors from accessing adult websites.
If your business breaks the laws and regulations and anything legal, the first impact will be visible on the merchant account. Soon after coming to notice, the acquiring bank will immediately reject your application. Not only the acquirer but also no high-risk international payment gateway will consider your business for its services.
Always keep an eye on the latest changes in the laws and implement them immediately because the exploitation of laws may harm your business’s health. Also, the threat of rejection of merchant accounts is always there. Not only the legal institutions but also the credit card networks keep issuing new regulations about the use of credit cards. Mastercard has made some considerable changes for adult merchants. Now the network follows stringent moderation and documentation policies. The adult merchants will need to authenticate the identity and age of the people depicted in the videos and pictures. Also, the merchants should give a document showing these people’s consent.
Conclusion
If you are already working on the points mentioned above, then it is inevitable that your merchant account application will be approved. Sometimes due to ignorance, some merchants miss following the dos and don’ts. But no need to worry because help is available 24×7. If you have hired a responsible payment gateway like Eskaypay payment gateway for adult merchants, you will get assistance in the merchant account application process.
However, the most important thing is your knowledge and experience about the industry and the talent to embrace change. Yes, situations can be complicated for adult businesses, but today we have more solutions than we expected a few years back. With technology, merchants can enjoy more transparency. Today they also have a right to talk about their rights against anything wrong such as friendly fraud.
