The adult industry has long been classified as high-risk by card schemes, making it difficult for businesses in this space to find reliable payment processors. From sex shops to webcam platforms and dating apps, the stigma associated with the industry, combined with concerns about fraud and chargebacks, leads many payment providers to steer clear or offer unfavourable terms to counter the perceived risk. This often leaves businesses with limited options and high fees when managing their payments. But being labelled as high-risk doesn’t have to mean a complicated or stressful payment process.
There are solutions tailored to the unique needs of adult businesses – ones that prioritise speed, security, and efficiency without the usual complications. In this blog, we explore the challenges of managing payments in the adult sector and Truevo’s unique approach to supporting high-risk businesses.
Why is the Adult Industry Considered High Risk?
Payment processors categorise businesses as high-risk in accordance with the merchant category codes defined by the card schemes.
For businesses in this sector, this high-risk designation can result in higher processing fees, long settlement periods and high rolling reserves, or susceptibility to policy changes, disrupting cash flow and operations. Many traditional payment providers are reluctant to take on these perceived risks, leaving adult businesses underserved.
The Challenges of Payment Processing in the Adult Industry:
- Limited Payment Providers: Many mainstream payment processors choose not to work with adult businesses, citing regulatory and reputational concerns. As a result, companies often face limited choices and may be forced to accept higher fees or less flexible terms.
- Cash Flow Constraints: Long settlement periods and high rolling reserves are frequent complaints from high-risk businesses. Settlement delays can create cash flow bottlenecks, making it harder to manage day-to-day expenses or invest back into the business.
- Chargeback and Fraud Risks: High rates of fraud and chargebacks are another concern in the adult industry, particularly for businesses offering subscription-based services. Disputed transactions can be costly, not only in terms of lost revenue but also in potential penalties from payment processors.
Streamlining High-Risk Payments Without the Stress:
Despite these challenges, there are payment solutions available that cater to the specific needs of high-risk industries like adult businesses. Our solutions aim to reduce the complexity of payment processing, ensuring businesses can maintain stable cash flow and avoid the stress that often comes with managing payments.
- Rapid Settlement for Steady Cash Flow: We prioritise fast settlements so businesses don’t have to endure the lengthy delays often associated with high-risk industries. Our straightforward process ensures businesses have quick access to funds, maintaining a steady cash flow and allowing for seamless day-to-day operations.
- Handling Chargebacks Efficiently: Chargebacks are part of doing business in the adult industry, but we help reduce their impact – our success rate for challenging chargebacks is over 90%! In addition to our advanced tools and verification technologies, our dedicated team actively works with you to handle disputes and minimise chargebacks, reducing penalties and lost revenue. This hands-on approach helps adult businesses retain more of their earnings and avoid the stress of frequent payment disputes.
- Subscription Solutions: Many adult businesses rely on recurring payments or subscription models, especially for premium content. Truevo supports automated billing options that allow businesses to collect recurring payments with ease.
- Online and In-App Payment Integration: Truevo’s online and in-app integration solutions make accepting payments faster, easier, and more reliable, no matter where your customers are. With a straightforward integration process, you can start accepting payments in-app or online in no time, allowing adult businesses to reach customers worldwide and offer mobile payments through popular methods like Apple Pay and Google Pay.
- Low Rolling Reserves, More Operational Capital: Another key benefit we offer is low rolling reserves, giving businesses more operational capital to manage their daily expenses. This provides businesses in high-risk industries like adult entertainment the financial breathing room they need to keep moving forward.
Supporting the Growth of the Adult Industry:
While high risk is often seen as a challenge, it doesn’t have to create unnecessary complications for adult businesses. Truevo’s payment solutions are designed to meet the specific needs of high-risk industries like adult businesses, combining security, speed, and personalised service. Our mission is to help you manage payments without the headaches commonly associated with high-risk processing. With Truevo, adult businesses can streamline their payment processes, reduce chargebacks, and maintain smoother cash flow, all while being supported by a team that truly understands their unique challenges.
High-Risk, High Reward
The adult industry has its fair share of hurdles when it comes to payment processing, but those challenges don’t need to slow down business growth. With payment solutions designed to address high-risk needs, adult businesses can enjoy faster transactions, better cash flow, and a more straightforward approach to managing chargebacks. The key is finding a provider that understands the industry’s specific challenges and offers the support needed to navigate them smoothly.
Want to learn more about how we support high-risk businesses operating in the adult industries? Talk to us today.
