Best Adult Billing Companies
If you own or operate an adult oriented business you know the headaches involved with securing stable and reliable credit card processing billing services. It is a critical component to your business operation and your revenue and profit stream. In fact it may be your only source of revenue and is vital to your success or failure. Fortunately you have landed on the right place. Not only do we support companies like yours, but some of the founders of our business have a background in adult entertainment websites from about 15 years ago when the Internet was just being born and commercialized. If you offer XXX DVDs, a membership site, pay per view or pay for download, on your website, you will need payment processing services. Unfortunately PayPal is a reliable service for mainstream companies, but it does not cater or offer services in this industry. If you attempt to use PayPal, use it at your own risk and be forewarned you will likely be closed and possibly your funds held for six months. So be smart and don't use PayPal for this type of business model. There are other aggregators out there that will pool many merchants into one billing service however their rate can be really high and cut into your profit margins.
Aggreators like CCBill, which has been around for years, they are a reliable company but their rates are typically very high and in the range of over 11-13%. This rates are much higher then a traditional adult merchant account. It is not necessary to go through an aggregator, so long as you are a legtimate business and follow laws and regulations you can get a regular merchant account for adult services through a traditional bank. With a traditional adult merchant processing company, you can probably expect to pay rates around 4%. Rates much lower than this are just unrealistic and be wary of other companies promising that list 24 or 48 hour approval times. A legitimate bank will go through and application process and do its due diligence when reviewing your company information. And realistically this will take 5 to 10 business days to get approved. If you are expecting an instant approval, don't be fooled into this.
The Application Process
Like mentioned above, we worked with several banks that are friendly towards porn business companies that sell sexually explicit material. However like applying for a car loan or a mortgage, getting approved for credit card processing for your adult business is similar. You will need to fill out an application that describes your business model in detail, and a credit check will be run on the person applying for credit card processor services. In many cases a site inspection will be performed to verify your information. Again you are dealing with a legitimate high risk merchant bank that is required to verify your information so that you can process Visa and MasterCard at at your production company. So be prepared to provide documentation about your XXX entertainment company. Please keep in mind that credit card companies will only process adult production businesses that are legal. This can include bdsm, gay, straight, lesbian, etc.. BUT If you are engaged in any type of illegal activity you will be denied and rightfully so!
A payment gateway ties your business to your merchant account. They facilitate the transaction processing between your website and the credit card processing network. In this case CCBill combine the payment gateway and merchant account into one. This can be beneficial however again the rates are extremely high and then cut in to your profit margins. Comparatively speaking, the difference between 4% and 13 or 14% is a lot. If for example you process 100 K per month, using an aggregator would cost you an additional 10,000 per month in credit card processing fees. So you are better off with a traditional billing service that relies on a classic merchant account company if you are trying to maximize your profit. Some of the more popular payment gateway billing services like authorize.net do not support adult businesses. We do however work with several gateway that do support XXX company. These companies are okay with sexually oriented material and erotic entertainment providers. So we can assist you with this part of the equation also. To get started, call us or contact us today!