A successful adult business provides the potential for a wide reach and high profits. But in order for these positive outcomes to occur, a savvy entrepreneur like you must understand why companies like yours are considered high-risk as well as the importance of finding the best high risk merchant provider. 
The added burden on adult stores.
Your store caters to grown-ups, selling items such as digital content, sex toys, and accessories. Although you operate within all regulations and obey the law, banks and other financial institutions still consider this niche to represent additional risks. Specifically, adult businesses have higher than average instances of the following.
- Card-not-present transactions (when customers are not present to sign for purchases).
- Subscription-based or pay-per-minute services.
- High volume of transactions.
- Poor credit history, especially for new businesses.
- Highly regulated or controversial content.
Now that you understand why adult businesses are high-risk, it’s also important to recognize that there is nothing you can do about being placed in this category. Like it or not, you will undergo more scrutiny during the application process and can expect to pay higher monthly and per-transaction fees. However, that doesn’t mean that you will be unable to find an ethical high-risk merchant provider with whom you can partner effectively. Find a company with the following attributes to maximize your chances of success.
1. Industry-specific expertise and reputation.
Because adult businesses run a higher risk of fraud and chargebacks, you need to partner with a provider that is well-versed in the special challenges you face. Before signing on the dotted line, make sure the company has an established track record of mitigating risks and working with businesses like yours.
2. Accepts multiple forms of payment.
Discretion and choice are particularly important to your customers in this specialized niche. Therefore, make sure the provider you choose accepts not only debit and credit cards but also digital wallets, bank transfers/ACH payments, and even cryptocurrency for ultimate confidentiality. Get feedback from your customers to learn what methods they prefer.
3. Focuses on security.
In a business where fraud and chargebacks are higher, you need to partner with a company that puts your security and that of your customers first. Find a company that can demonstrate their commitment to data security by offering anti-fraud tools, chargeback protection, and compliance with the Payment Card Industry Data Security Standard (PCI DSS) that protects cardholder information.
4. Charges reasonable fees.
Although your high-risk status means that costs will be elevated, that doesn’t mean your company should have carte blanche to charge you through the roof for transaction, chargeback, processing, and other associated fees. Pricing should be clear and transparent.
5. Responsive customer support.
Your business’s success relies on your website being up and running at all times. When problems arise, you need a processing company that will act to get you fully functioning again as quickly as possible. Before making any commitments, be sure that support channels such as phone, live chat, email, and SMS are accessible and that help is available 24/7.
Succeeding in selling adult entertainment products does not come without a robust investment of time and research. But with the right high-risk merchant provider at your side, you can overcome the challenges and provide the products and services your customers are demanding.
