Risqué and Taboo Nature of Porn
I was commuting to my office in Los Angeles and I happened to encounter a staggering fact in a popular magazine- Porn industry is one of the largest industries in the world. Its magnitude is beyond numbers. Factually speaking, it has outranked the entire Hollywood box office industry and is all set to become the largest industry in the near future. Some of the historically popular terms include porn and sex. The fact that it has been dominating the World Wide Web since the past decade is a testimony to the exposure of mankind to this industry. Everybody likes watching porn and nobody likes admitting the fact. This can be attributed to the risqué and taboo nature of porn.
Owing to the lucrative and profitable nature of adult industry, you might have contemplated to start adult website. There are various adult turnkey software that help you start turnkey adult websites. You can also purchase adult websites. Seven out of 10 sites on the internet are adult websites.
The Stereotypical Merchant
Well, let me mention a line or two about the stereotypical merchant account- Stereotypical merchant accounts accept payments associated with almost every non-adult industry. This is an interesting situation as the very nature of adult industry makes it further challenging to get a merchant account for your adult website business. While starting an adult website is a daring step in itself, getting a merchant account is wearyingly toilsome. This can be attributed to the underlying ‘risk’ factor.
Underlying Risk Factor
Banks and merchant service providers act as watchful custodians by examining adult merchants. Adult merchants are subject to high risk due to the following reasons:
- The products and services should be sold to adults only. This requires age verification.
- Some of the products being sold fall under the radar of grey area of legality. Some of the products may be controversial. Some of the other adult products may find their way to minors. All such factors cannot be discounted.
- Adult industry is subjected to stringent government scrutiny.
- Adult industry has a historic track record of innumerable identity thefts and cyber frauds. In case of any discrepancies, the victim and adult merchant may suffer huge monetary losses. Needless to emphasize, credit card chargebacks are extremely costly.
The worst case scenario is that adult merchants may be blacklisted by reputed card brands such as Visa and MasterCard. This essentially means game over for those merchants. Also, placing a merchant under the microscope of Terminated Merchant File has gruesome repercussions. Such merchants may require diligent legal representation to get re-approved. Believe me, legal representation costs you egregious fee.
More often than not, most of the payment processors force adult merchants to sign long-term contracts that are subject to high rates and immense scrutiny. This adds fuel to the fire. All such factors add unnecessary pressure and stress. If you are new to adult merchant accounts, you will realize that painless processing is almost a distant dream.
Payment Processing Solutions
A robust adult payment processing solution should accept a wide range of adult merchants that include:
- Adult Membership Clubs
• Adult Membership Websites
• Adult Toys
• Adult Video’s
• Bath Houses
• Companionship Services
• Dating Sites
• Digital Downloads
• Independent Massage Therapist
• Live Entertainment
• Massage Parlors
• Penis Enlargement Products
• Phone Sex
• Sex Toys
• Sexual Enhancement Products
• Sexual Enhancement Supplements
• Strip Clubs
• Swinger Clubs
• Web Cams
Please be informed that this list is not exhaustive. While accepting such adult merchants, payment processing solutions serve as go-to solutions for:
- Credit Card Processing
- Debit Card Processing
- Check Processing
- ACH Processing
- Merchant Cash Advance
- Point of Sale Systems (POS)
All the adult business transactions must adhere to PCI (Payment Card Industry) rules and regulations.
Here is a brief note on the three reputed adult payment processors:
Verotel started payment processing for adult sites in the year 1998. It caters to over 50000 merchants globally and has a track record of never having missed a single payment till date.
Their CardBilling campaign is highly reasonable. What all Verotel charges is a flat 5% per transaction and this includes hidden fees, refund fees, transaction fee etc. Most of the payment processors extort money in the name of hidden charges. Also, there is no frontier on the minimum volume of transactions. Verotel is based in Amsterdam, capital city of Netherlands, Western Europe. As a result, the payment processing company need not pay any annual fee for high risk sites. It is a known fact that annual fees lowers processing costs.
Verotel has two types of implementation:
- Verotel RUM
- Verotel Flexpay
Verotel RUM stands for Verotel Remote User Manager. It is essentially a script installed on the server of the merchant. Once the users complete a transaction, Verotel uses Postback HTTP call to enjoy the privilege of deleting their profiles. In addition, they can add or modify the profiles too.
Verotel FlexPay allows Verotel merchants to charge for content and the latest version of FlexPay supports subscriptions as well. Verotel FlexPay is ideal for:
- Cam sites
- Pay per View Sites
- Shopping Cart Systems
- Pay per download sites
- Token purchase systems
- Credit purchase systems
Epoch is a secure payment processor approved by both MasterCard and Visa payment facilitators. It is the first payment processor company to pass a third-party audit. It is also one of the first companies to embrace Verified by Visa (VBV) and MasterCard Secure codes. Epoch provides various billing options for every kind of customer. Some of the billing options are:
- Recurring Billing: As an adult merchant, you can extend an offer to your customer to opt for a subscription that bills automatically unless the customer opts out for the service. This type of billing improves not only profitability but also cash flow.
- Per Unit Billing: This type of billing is all about the number of credits or tokens earned vis-à-vis blocks of time. Customers can thus be billed according to the type of unit they have opted for.
- One-time Billing: As the name suggests, one-time billing is all about one-time purchase. Customers make nothing short of full payment.
- One-click Billing: More often than not, customers have to enter and re-enter their information to pay the bills. With One-click billing feature, customers can do away with the re-entry.
CCBill has been in the business of processing adult transactions for the past 15 years. It is a highly respected name in the payment processors industry. Visa considers adult transactions as “high risk”. CCBill processes all high risk transactions at a fair pricing of 5.9% + $0.55 per transaction. All other features such as automated subscriptions, free and paid trials, round the clock billing support are included in CCBill solution.
If you have any queries, drop a line or two in the comments section. I shall be more than happy to answer them. I can help you build start an adult website business. I wish you all the good luck. Cheers!