Adult Dating Merchant Account
The demand for international dating has spiked considerably with the number of internet users coupled with the higher divorce rates. Coupled with the ease for people to access the internet, the dating industry has come onto the scene with a huge presence. As with many things, when you are paying for the chance of something happening, there is a risk that relationships will not work out. These very real, and high probability, problems have lead to most banks not providing online dating merchant account services. Finding a dating merchant account company that is able to provide merchant services to the dating industry is few and far between unless you partner with a specialized payment processor.
Concerns for Dating Merchant Services
Payment processors and merchant acquirers have viewed dating websites as higher-risk businesses, many times declining to offer them merchant services. Two of the most common reasons why these types of merchants have issues stems back to instances of chargebacks and fraud that have plagued the industry.
High levels of refunds can be a cause for concern because it can reflect the business practices of the merchant. In the dating industry, it is common for consumers to want refunds. Many times this request is based on the user not having success on the website. The promise of meeting girls and when in reality, it is not always a guarantee.
The most severe response a merchant can receive from a consumer is a chargeback. Banks will want the merchant to limit these occurrences and work with them to curb the trend. Whether customers did not agree with the monthly rebilling they signed up for, or if they simply did not have any luck, these need to be dealt with.
Having Terms and Conditions that are easy to understand can reduce these problems. Providing customers with a simple means to cancel a subscription can prevent chargebacks, that can span back months. Part of the due diligence and requirements of underwriters will include specific language used in these pages or in the shopping cart to help reduce the chances.
Credit Card Processing for Dating Sites Options
Accepting payments for dating websites can require a different setup than other businesses. Traditional merchant account services might not work for all merchants, requiring a specialized payment processor. The 2 most common ways merchants have been accepting payments for dating include:
- Credit Card Processing
- Cryptocurrency Processing
The most widely used method of payment is credit or debit card. As buying habits have changed amongst since the 1990's, most consumers today possess either a credit or debit card. Online businesses have adopted e-commerce stores to expand their customer base to the world. Dating websites have been one of the most ideal proponents for accepting credit cards, with a global customer base that matches people from all walks corners of the globe.
The lastest solution to making online payments has been through cryptocurrency. Using an integrated payment gateway to the merchant's shopping cart, crypto customers can easily send payments to merchants without using a credit or debit card. Payment processors have built secure payment gateways that can quickly accept payments without any concern for merchants or customers alike.
Other types of payment services exist, such as electronic check, but it depends on the business model of the merchant to decide what solution will best fit the needs of their business.
How an Online Dating Merchant Account Works
The process to accept a credit card involves a number of different financial organizations working together to authorize and ultimately settle the funds from a sale. The main parties involved in a dating merchant account transaction include:
- Merchant Acquiring Bank
- Payment Card Network
- Card Issuing Bank
When a business opens up a merchant account, they are contracting with a merchant acquirer, or the payment processor, to handle their payment authorizations. The merchant acquirer provides merchants with access to a payment terminal along with support services. The rates and fees assessed on transactions along the with monthly statements of sales are tracked and provided by the merchant acquirer.
The payment card network consists of the most commonly known names, including Visa and MasterCard. These companies are not in the financial services industry, rather they are technology firms operating some of the most sophisticated networks. These organizations that comprise of the card networks handle the security and licensing of their network to the various banks.
The card issuing bank is located at the other end of the payment card network from the acquirer. Providing account security and financial services for their customers, the card issuer is responsible for authorizing transactions and paying merchants.
Once a consumer uses their card on a merchant website, the acquirer will capture the details of the transaction. This information, including card account details and the amount of the authorization request, are passed along to the card network. After the card network determines the issuing bank, the card file is sent to Issuer for review. Once the issuer receives the authorization request, the cardholder's account and request are put through security and financial checks. Once a determination is made, the request is sent back through the card network to the merchant location. Later that day, settlement requests are made by the merchant and eventually sent by the card issuer.
Online Payment Processing Requirements
Opening a dating agency online will require merchants to supply certain documents to fulfill the KYC (know-your-customer) guidelines for accepting payments. While the exact documents required will vary between payment processors, these are the most commonly requested:
- Completed Application
- Government Issued ID
- Operational Website
The most important thing that an underwriter will want to see is a completed application from the merchant. These in-depth applications will detail most parts of the business, allowing the underwriters to dig deeper into both the merchants and business' history. Incomplete or inaccurate parts of the application will result in delays and possibly raise suspicion with the underwriting agency. Before sending an application back in, it is important to make sure it's correct and complete.
Banks and payment processors operating in the high-risk merchant service industry are cautious for many of the right reasons when it comes to merchant applications. Using a government-issued ID along with the application details, underwriters can pull multiple different background checks on the applicant. Existing businesses will also be checked against the TMF Match List to see if they have a history with the payment card networks.
Most higher risk businesses are operating in a Card-Not-Present environment, meaning transactions are either made through a website or a MOTO (mail-order/telephone order) scenario. Having a website that is both secure and fully functional is a requirement of all underwriters. Merchants will also need to have a solid Terms and Conditions agreement that lays out everything from the delivery of products or services to the refund guidelines. This will help merchants control their rates of chargebacks and refunds.
Benefits of a Dating Merchant Account from EU Paymentz
Setting up Dating payment processing services requires using a qualified dating payment processor. Since the core part of the business is rebilling, the need for a reliable adult dating merchant account provider is essential. At EU Paymentz, our staff has years of experience working with continuity and rebilling dating payment processing services. Our team of professionals will be able to help nearly any merchant establish credit card processing to fit their dating website needs.
Open your Dating Merchant Account Today!
If you are opening or currently operating an international dating website, check with EU Paymentz about our payment options. Our team of payment processing professionals has years of combined experience setting up global dating companies to accept payments. We will be happy to discuss your company and what you are looking for so we can place you with the best solution for your needs.