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This merchant found it difficult to scale for a number of reasons. Reasons ranged from a processing fees eating up profits, limited currencies options and high chargebacks. They wanted to apply for a merchant account. However, with their current performance, several of their applications were rejected.

This represented a majority of their user base and helped concentrate their marketing dollars. Multiple new currencies became available, which increased their conversions in these regions. Companies facilitating a platform for exchanging nude or sexual images and consensual sex are considered high-risk by payment processors. Getting processing through low-risk channels like PayPal and Stripe is not even an option, particularly if you have adult content or images.

High chargeback rates and fraud are synonymous with this industry. This is especially in light of the low membership price points and free or discounted trials offered to attract customers. Promotions of this nature are a challenge to obtaining a merchant account, particularly if you offer monthly recurring memberships.

With tighter rules, fraud prevention and mitigation are a must for all merchants, especially those in high-risk verticals.

Adult dating sites take paypal

The key to obtaining a high-risk merchant account is having acceptable risk levels and processing history. New businesses in this vertical can also be approved with strong financials and a good credit score. Furthermore, dating merchants should recognize the need for enhanced security on their sites and apps. Fraud changes the way payment processors deal with merchants The digital dating sector has witnessed both great successes and great demises for adult dating and similar online businesses.

One such early mover was Ashley Madison. Details emerged that Ashley Madison was home to a large number of bot data farmers with fake accounts after an investigation.

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