Adult merchant account - What is considered adult business?

[kiberlain]

Web sites of an adult nature require special adult merchant accounts. Adult merchant accounts will charge you more to process your payments. In this article we will review what is considered adult business and the pros and cons of 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 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.