Sex Sells: Adult Merchant Accounts

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Sex Sells Big Time Online

Internet adult entertainment is a $5 billion industry.  Over 40 million Americans are regular visitors to adult websites.  More than 33% of all internet downloads are of pornographic material.

One thing is for sure.  Establishing and maintaining adult merchant accounts is crucial to business success.  Any business selling adult entertainment and services needs a reliable way to accept payments.

Right Bank Crucial for Adult Merchant Account Success

Within the last few years, many banks that previously accepted adult merchant accounts decided they would no longer accept the business type.  The reason is that most financial institutions do not know how to manage chargebacks and fraud at the banking level.

No matter how well you manage your adult merchant account, you are still putting your high risk processing at risk if the other businesses that process with the bank do not manage their accounts correctly.  One bad merchant can cause a bank to exceed thresholds for chargebacks.

When this happens, banks purge all high risk merchants from the portfolio in order to comply with mandated regulations.  The only way a bank can protect itself and all the business processing with it is to have superior fraud protection and chargeback safeguards in place at the banking level.

Exclusive Network of Banks for Adult Merchant Accounts

Paynet Secure has an international network of acquiring banks which are not available through other sources.  All banks in the network are integrated with a unique platform.

The technology guarantees that chargebacks and fraud are kept extraordinary low.  As a result, the banks provide you with secure, long-term payment processing.  While offering aggressively competitive rates to high volume adult merchant accounts.

The 84 banks in the network are all connected to a single payment processing system.  With one “plug-in” you gain access to all the banks in the network.

You can quickly and easily diversify adult merchant accounts across multiple banks.  Your cash flow and liquidity are protected.  And you have access to virtually unlimited high risk processing capacity to power your business growth.

Why Adult Merchants are Considered High Risk

High risk adult merchant accounts classification categories apply to digital content, downloads, chats, streaming video etc.  Sexually oriented companies selling virtual goods and services encounter the same issues as any other digital merchant.

Low ticket, digital delivery virtual goods are high risk merchants.  Statistically, these business types have more chargebacks and greater incidents of fraudulent transactions than companies that sell tangible products.

More Reasons Adult Merchant Accounts are High Risk

Adult entertainment companies face even greater challenges than other digital merchants.  For example, supposes a man (or a woman…because 1 in 5 visitors to adult websites are women) buys adult digital content.

The credit card bill comes due.  The spouse, having no idea that their better half has been sampling the spice of life online, looks at the bill and sees the charge.  What do you think is going to happen?  You got it.  Lots of potential for chargebacks here.

Recurring billing is another reason for adult merchant accounts fall into high risk payment processing categories.  Many adult entertainment businesses have a subscription based business model.

Let’s say six months down the road, the consumer looks at the credit card statement.  Money is tight so consumer calls the issuing bank and initiates a chargeback on the transaction.

But, the charge back is not just for one month’s charges.  Credit card rules allow chargebacks to be initiated for up to 180 days.  So, the consumer disputes the last 6 months of transactions.  It’s easy to see how chargeback ratios can quickly escalate for adult merchant accounts.


Diversification of payment processing accounts is wise strategy for all high risk merchants. Adult merchant accounts are readily available, making it easy for you to obtain more than one account.  

Multiple accounts protect your business. And give you the processing capacity needed to grow. 

Interested in applying for an adult merchant account?

Contact today


High Risk Merchant Accounts Protect Business Liquidity

Secure high risk merchant accounts are crucial to maintaining business liquidity.  Settlement of payment processing funds ensures a steady source of working capital as well as capital available for investment.

The term “liquidity” refers to how quickly assets can be converted into cash.  The most liquid asset is money, in the form of cash.  The acceptance of payments through high risk merchant accounts represents a major portion of cash flowing into a business.

The protection of high risk merchant accounts needs be a top priority for businesses.  However, few companies have a strategic plan in place to keep payment processing safe.

Many companies have a single high risk merchant account.  And are lulled into complacently, believing they are safe.  That’s a big mistake.

Single Bank for High Risk Processing Puts You at Risk

It’s not prudent for any company processing a lot of payments to rely on a single acquiring bank.  For companies with high risk merchant accounts, the potential impact on business operations is particularly significant.

Let’s consider what’s happening in the banking industry.

A high risk merchant account is essentially a short term line of credit that is extended to a business.  The economic situation both in the US and throughout the world has caused banks to tighten credit, and less credit is available to businesses.

New regulations, such as the Basal III Accords, are forcing banks to comply with new reserve and capitalization requirements.  The banks are reexamining payment processing portfolios, and high risk merchant accounts in particular, to identify potential contingent liabilities.

You may say “Our Company has low chargebacks and minimum fraud so our account is safe.”   That’s not necessarily true.

As banks look to reduce exposure to loss, entire high risk merchant account portfolios are being jettisoned by the banks.  Accounts within the high risk portfolio with stellar payment processing are tossed out along with the rest of the accounts.

You don’t want to be put in this situation

Every day we get calls from companies that have been processing with the same bank for years.  These companies have to find new high risk merchant accounts.  Fast.

Frequently, companies are told that the bank would no longer process for their business type.   Other times, the bank said it was unable to extend additional lines of credit to meet the processing volumes required by the business.  Or that the bank was now requiring additional reserves or changing the terms of processing.

We can help many of these companies quickly establish other high risk merchant accounts.  Still, it’s much better to avoid being put in this situation in the first place.


Diversification of high risk merchant accounts is the best protection for your business.  And the easiest way to diversify payment processing is to gain access to an entire network of banks.  Load balance among accounts on a high risk gateway.

You never again have to depend on a single bank for your high risk merchant accounts.  With so many banks available for high risk processing, lines of available credit for payment processing are virtually unlimited.

Liquidity is maintained.  And your high risk merchant accounts are safe and secure.

Are you interested in diversifying your high risk processing account?

Contact today