Adult Merchant Accounts

There are some businesses that are considered “adult” in nature. These types of businesses have a very specific risk profile, since they are often associated with dangerous products or with products and services that are considered on the fringe of accepted society. Adult merchant accounts are often costlier than other types of merchant accounts because they carry a higher risk of credit card chargebacks and also of costs. The companies involved have certain risks attached, from insurance costs due to lawsuits, to the possibility of illegal behavior and the risk of being shut down before the merchant account provider can receive payment.

What are considered adult businesses?

In most cases, adult businesses are those that offer products and services that can legally be bought only by those who are at least 18 – legal adults. Some of the businesses that might fall into the category requiring adult merchant accounts include the following:

Adult entertainment. This includes videos, magazines, books sex toys and other items and services associated with the adult entertainment industry. These businesses can be online or offline, but they include items and products that are for practices that may not be socially acceptable. There is the risk that adult entertainment businesses will provide products and services to minors (illegally) or that they might engage in the illegal traffic of such items as snuff films or child pornography. If these businesses are shut down, the merchant account provider runs the risk of not getting paid if money is owed.

Dating, escort and massage services. These are considered adult businesses as well. One must be at least 18 to take advantage of the services offered by dating firms, escort services and massage parlors. It is important to note that in some cases, dissatisfied customers may demand chargebacks. Additionally, sometimes a line is crossed by these companies and services into illegal activities that increase the risk for merchant account services.

Gun sales. With prominence of shootings in public places, and the dangerous nature of guns in the wrong hands, it is no surprise that gun sales are considered high risk and adult. Indeed, some gun shop owners are sued when the products bought at their businesses are used to kill others. Additionally, there is the possibility of chargebacks if someone is denied after a background check and waiting period.

Liquor sales. Another adult business is selling liquor. A liquor store carries the risk of robbery, as well as problems associated with some of the clientele. And, of course, this is an adult business since purchasers must be at least 21. Smoke shop/tobacco store sales and lottery sales are also considered high risk and adult.

If you want to run a business selling products or services that are considered for adults it is important to realize that you will be charged more for your merchant account – or you might have trouble getting one in the first place. There are some service providers that offer high risk merchant account alternatives for those who run adult businesses and may need an option for accepting payment.