Do you have an adult merchant account?
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| Yes, you! |
As someone doing business and taking credit cards in the adult industry, I'm sure you've heard just about everything in the book - and, I'm also sure a lot of it's negative crap, too. Adult industries and adult merchant account owners in particular get the short end of the stick in today's wonderfully ambivalent, ambiguously sexualized-but-wait-not-really world we're a part of. When it comes to adult credit card processing, it's a freaking jungle out there. What are you to do?
This post is here to help address common problems adult merchant account owners or would-be-owners have with getting decent, competitive costs on their credit card processing. It's a little more difficult to do than it is for run-of-the-mill businesses, but it's attainable. Read on!
How to get decent rates on your adult merchant account
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| Take notes, 'cause this might be on the final. |
Suggestion 1: Take control of your chargebacks by obtaining extra information
One of the chief reasons an adult merchant account is considered part of a high risk business is because of the chargebacks you'll often incur. Chargebacks occur when customers (claim they) aren't satisfied with your products or, more often, when they don't remember ordering them, so they file a dispute with their credit card provider looking to get their money back for the product they ordered from you. Winning a chargeback battle can be difficult if you don't provide adequate information about the credit card and transaction itself, so you should be absolutely sure to:
- Make sure your customer gives you the CVV code from the back of his credit card. This is just another piece of information that helps verify the card wasn't being used fraudulently.
- Make sure the customer gives you his billing address. You'd want this for the same reason you'd want a CVV code.
- For retail adult stores, invest in EMV technology. EMV isn't mandated yet, and, certainly not everyone uses EMV credit cards yet, but, when the time comes, EMV will reduce fraud pretty significantly because EMV credit cards are inherently harder to replicate. An EMV-enabled terminal costs you $200 or so. It's a great investment.
Supplying the extra detail and using EMV card readers won't help you win every chargeback, but it will help you win more than you're winning now. And, fewer chargebacks mean lower costs for you because your processor doesn't need that extra insurance against your would-be fraudulent transactions. Everybody wins.
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| Don't let this happen to your poor customers. |
Suggestion 1a (or 2): For retailers, give your business an innocuous-sounding name so your customers (or their significant others) don't freak out at their monthly statement
This may seem silly, but it can help reduce chargebacks as well. You may not be able to control what products of yours your customer chooses to bring home, but you can control how your business is presented on his credit card statement. Regardless of the actual name of your establishment, which I recommend you keep so as not to turn away legitimate business, you can choose to you have your adult novelty business show up differently on someone's credit card billing statement. Using the name of a bookstore or referencing the name of the street address of the business are both tactics you can use. Be a little creative!
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| Why isn't this you yet? |
Suggestion 3: For wholesalers and manufacturers, use a processing method that can obtain the best base costs on business-type credit cards
Some business owners aren't aware that business cards have a few different set acceptance costs based on how much extra information is provided along with each transaction - that is, the more information you provide, the less you have to pay. And, of the business owners who do know about these lower costs, not everyone knows if their gateway will accept the information, or even how to do it. Here's what I suggest:
- If you don't use a virtual gateway for credit card processing (i.e. you're still keying cards into your black box terminal), start there.
- If you do use a virtual gateway, ask your processor if you're getting the lowest costs for business-type credit cards. They may be able to help you.
- If you know you're getting some discounts from card qualifications, ask your processor what steps you can take to get all the business-type cards you take to qualify correctly. They may be able to help with that, too.
- If your processor is unable to help you, it may be time to choose another credit card processor.
This is another solution that isn't the entire package but will help lower your costs somewhat. Again, this is only pertinent to wholesalers, distributors, and manufacturers.
I know it's a little harder than usual to get decent credit card processing as someone who wants an adult merchant account, but, it can be done. Cost savings are part of the battle, and, by at least utilizing point 1, you'll be doing both yourself and your processor a huge favor, because without the chargebacks, your risk level drops significantly.
Happy trails,
Jeremy
