Gentlemen’s clubs like yours are part of a totally legal, multi-billion-dollar industry in the United States. Even so, a conventional merchant provider will almost certainly deem your establishment to be a high-risk business, making it difficult to obtain the credit card payment processing services that are essential to your operations. The good news, however, is that there are high-risk merchant account providers with expertise in your industry who are willing to give you everything you need to succeed in this highly competitive sector.
What is a high-risk payment processor?
As a gentlemen's club, your business is being placed in the high-risk category for several reasons.
- High closure rate of adult night clubs.
- The need to adhere to numerous regulations in order to remain in business.
- High chargeback rates (when customers dispute your charges on their credit card bill).
- Social stigma leading to greater reputational risks.
High-risk providers give you full access to the debit and credit card payment processing that you need, albeit at a price. You can expect to pay higher per-transaction fees and may be asked to open a rolling reserve account that the company will only access if you fail to keep up with your payments. In addition, the application process may be longer and require extra financial documentation.
The benefits of a merchant account for your club.
Your merchant account will allow you to securely take customer payments, but that’s just the beginning of the ways it can help you to optimize your club’s operations, which also include the following.
- Allows you to accept multiple forms of payment, i.e., e-checks, ACH.
- Provides payments software that contains robust security tools that combat fraud and other types of cybercrime.
- Is compatible with mobile and contactless payments.
With a reputable high-risk merchant account provider, these built-in mechanisms combine with 24/7 customer support to ensure that your club can do business without major interruptions and with customer satisfaction at the forefront.
What your POS can contribute.
When you sign up with your merchant account provider, you will also have access to a modern point of sale (POS) system that can be used not only to process payments but also to streamline numerous other aspects of your business operations. The following POS features will be indispensable in your club’s success.
- Ease of use in entering drinks and accommodating for promotions and happy hours.
- Split checks function.
- Credit/debit card preauthorization. This allows the bartender to swipe the card just once to verify sufficient funds, with no need to leave the card behind the bar while the tab remains open.
- Menu and tip management features.
- Mobile-enabled ordering.
Behind the scenes, your POS can also be a gamechanger by furnishing the following.
- Inventory management enables you to know your stock levels in real time. The system can even send you alerts when supplies run low.
- Customer relationship management, including the capability for rewards/loyalty programs for your best patrons.
- Employee management that helps you create, change, and track schedules and gauge individual worker productivity.
- Reports function that enables you to create clear, actionable documents. Use these to track sales and profits and even make intelligent forecasts for upcoming months based on past history.
As you can see, the POS provided by your high-risk merchant account provider will quickly become one of the most valuable assets in your club.
The adult entertainment industry is challenging, yet it has the potential to be highly lucrative. Stack the deck in your favor by partnering with a high-risk merchant account provider who is uniquely equipped to help you to navigate through this industry, and your chances of flourishing will be high.
