A hint of the word “escort” and any banker or traditional lender will frown and quickly brush your paperwork aside. Considering the risky nature of this industry, it isn’t surprising that these merchants struggle to find a provider willing to process transactions. If you’re considering opening a business in this industry, your next thought is likely: how do escort services merchants manage to process their online transactions then?
The following information will help you better understand the risks these businesses experience, why they struggle to secure payment processing and how you can find a provider willing to work with you.
Why are Escort Businesses Considered High Risk?
There are several reasons why these companies fall within the “high risk” category. Here are the most common:
- Deceptive business practices. Unfortunately, there are unfair merchants out there that try to conceal prostitution as escort services. This makes it incredibly challenging for legitimate merchants to secure merchant services, since providers must do extra work to ensure who they are dealing with.
- High chargeback rates. As with any type of business, there are going to be dissatisfied customers. Chargebacks are an inevitable part of doing business in this industry.
- Reputational risk. Even today, morality still impacts business and social life – escort is no exception. The possibility of scandal is always present, which adds to the reputational risk involved in working with these merchants.
How to Open an Escort Merchant Account
So, what’s the answer? To open – and keep open – an escort merchant account, you will need to seek out a high risk specialist. These providers are equipped to handle the many challenges these merchants face, and understand the merchant services they need to be successful. Fortunately, applying for an escort merchant account with a high risk merchant service provider who accepts adult businesses couldn’t be simpler.
Step 1 – Fill out an online application form (only takes a few minutes).
Step 2 – Present the following supporting documents and fulfill following requirements (will depend on the provider you choose):
- 3 months of the latest business bank statements where applicable
- A valid ID, e.g. driver’s license
- Voided businesses check or bank letter
- Chargebacks under 2%
- A secure, operational website
- SSN (Social Security Number) or EIN (Employer Identification Number)
Step 3 – Receive approval in as little as 24 hours.
Step 4 – Start accepting credit cards and take advantage of the provider’s other merchant services like chargeback protection and e-commerce fraud filter (for online payments).
Opening an escort merchant account doesn’t have to be a huge obstacle. As long as your intentions are good (legal) and you find a reputable high risk provider like EMerchantBroker, you will succeed.