Merchant Account Payment Gatways
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Adult Merchant Accounts
When it comes to starting a new online business, many proprietors do not realise that different businesses require different types of merchant accounts. They also often fail to anticipate how difficult it can be to locate a compatible merchant account service provider if they are competing in a controversial industry.
Probably the most controversial, yet lucrative online businesses these days are adult or pornographic websites. For years the growth rate of this online industry has been astonishing, but even so, many merchant account service providers will not accept their business, which is why adult merchant accounts have some of the highest service rates on the Internet.
Why is this? Well, there is no denying that one of the reasons that these businesses are often denied service has to do with moral standards, as many of the larger merchant service providers believe that doing business with these companies may reflect negatively on them. However, it is also a fact that many adult websites have an incredibly high number of chargebacks, which means that customers dispute transaction costs and fees.
What do payment service providers actually do? Simply put, they manage credit card payments and verify that customer transactions are secure. The service provider receives a certain percentage fee for each and every transaction. Because they are riskier and more controversial, adult merchant accounts often have astronomical rates.
What should an adult site look for? The number one thing that service providers look for are high monthly sales, which may help them obtain lower rates than the industry average. Generally speaking, a new adult website should expect to receive rates of between 7-10%. While the more popular sites with outstanding sales numbers can receive rates of only 4-5%.
Probably the most important thing for these businesses is to make sure that they find a company that offers advanced security features. This can cut down on chargeback fees and may help them lower their transaction rates, even if they are not a top adult website.