The adult industry is often seen as high-risk by payment processors, and there are a few key reasons behind this. For starters, there’s a whole bunch of legal and regulatory hurdles to jump over. These businesses have to make sure they’re following all the rules, like verifying ages, avoiding anything deemed too obscene, and keeping up with changing laws. Financial institutions could face hefty fines or even criminal charges if things go south, so they tread carefully.
Then there’s the reputational side of things. Some banks and payment processors shy away from adult content because they worry it might harm their image or upset partners and clients. It’s especially true for bigger banks that are watched more closely by regulators. They don’t want to risk their good name by getting involved with something seen as controversial.
We cant forget the issue of chargebacks adds another layer of complexity. Adult products and services often get more chargebacks, partly due to discreet billing that leaves some customers confused over charges they don’t recognize. Plus, many adult sites use recurring billing, which can lead to disputes if customers forget about subscriptions or change their minds. All these factors combined make the adult industry a tricky one to handle for payment processors.
Find our list of Payment processors here, watch our videos here and check out our blog for more information on different aspects to start your Adult Money Making Machine.