Adult merchant accounts are among the most difficult to obtain due to the high risk involved. Since popular merchants such as PayPal don’t work with businesses in the adult industry, it can be tough to find a good adult merchant account. And since even pharmacies like CVS Health are considered high-risk businesses, you can imagine how difficult it can be to find a merchant account provider for an adult business. There are several payment processors you can use, but obtaining an account can be a challenge.
In this article, we’ll show you how to increase your chances of being approved for an adult merchant account.
Ensure You Have A High Credit Score
This is the first and most important step in obtaining any merchant account, but it’s especially important when you’re classified as high risk. Your credit score is a reflection of your financial history, and it tells processors whether or not you’re likely to default on payments.
If you don’t have a strong credit score, now is the time to work on improving it. You can do this by paying your bills on time, maintaining a low balance on your credit cards, and avoiding any financial red flags such as bankruptcies or foreclosures.
Gather Required Documentation
The next step is to gather all of the required documentation. This will vary depending on the processor you’re working with, but it typically includes items such as your driver’s license, social security number, tax ID number, and bank statements. You may need to prepare up to two years of financial documents. This includes profit and loss statements, balance sheets, and tax returns.
If you’re just starting out, you may not have two years of financial documents. In this case, you can provide projections for your first year in business. These should be prepared by a certified public accountant (CPA) to increase your chances of being approved.
You may also be required to provide a voided check or bank letter of authorization. This is so the processor can verify that you have a business account with a U.S.-based financial institution.
Ensure You’re PCI Compliant
Another important step in the process is ensuring that you’re PCI compliant. This stands for Payment Card Industry, and it’s a set of standards that all businesses must adhere to when they accept credit card payments.
There are four levels of compliance, but most processors will require you to be at least Level II. This means filling out a self-assessment questionnaire (SAQ) and providing documentation to prove that you’re following all of the relevant security protocols.
If you’re not sure whether or not you are PCI compliant, you can contact a processor directly or use an online self-assessment tool.
Find the Right High-Risk Processor
The final step is to find a high-risk processor that’s willing to work with your business. This can be a challenge, but there are a few things you can do to increase your chances of being approved.
The first is to research processors and read reviews from other businesses in the adult industry. This will give you a good idea of which ones are more likely to approve your account.
Another thing you can do is to contact the processors directly and ask about their requirements. This will give you a better idea of whether or not you meet their criteria.
Once you’ve found a few processors that you think may be a good fit, it’s time to apply. Be sure to complete the application in full and truthfully.
Providing false information on your application is grounds for immediate denial.
If you follow these steps, you’ll be well on your way to obtaining an adult merchant account. Just remember to be patient and persistent, as it can take some time to find the right processor. Good luck!