The adult industry has been around for hundreds of years and continues to grow and evolve. Over time and with the advances of technology, adult content and products that were previously difficult to locate and acquire, have now become readily available in abundance. Consumers are able to purchase content and products discretely in their home. This has aided in turning the adult market into a lucrative billion dollar industry that continues to flourish. By content and products becoming more widespread and common, the negative connotation associated with the industry has also changed and become more acceptable and mainstream by many. But even with the new era of acceptance, there are still many that disapprove and believe that products and content should be banned or prohibited. With many still trying to create or increase restrictions on legal content, the industry is still classified under the high risk category.
In our experience of the adult content industry, one of the main reasons that it is classified as high risk is due to subscriptions. Many of the merchants who offer adult content do so by a subscription / recurring payment model. Unfortunately many processors identify the subscription model as a liability due to automatic recurring payments often being accompanied by a high amount of chargebacks. A few reasons this happens is that not all customers are aware that they are signing up for a recurring monthly payment. Other times the customer may be aware of the monthly subscription, but do not recognize the name of the company on their credit card statement and believe that it is a fraudulent charge. Some customers that no longer want the subscription are confused on how to cancel their account and request a refund from the merchant. In these situations, the customer may call their issuing bank / credit card provider and dispute the charge, instead of requesting a refund. This will result in a chargeback to the merchant. Chargebacks may result in fines to the merchant, the merchant being placed on the TMF list or having their account closed. To help prevent this, it is very important for the merchant to provide clear terms of the subscription / recurring payment service listed multiple times on their website so the customer is aware of the contract they are signing up for and the cost. Merchants should also have a very recognizable descriptor so customers know who the charge is from on their credit card statements. Another easy way to prevent chargebacks is for the merchant to provide a straightforward and uncomplicated refund policy. If the customer is able to easily cancel their subscription on the site, many times they will choose this option instead of a chargeback.
At Performance Card Service, we are partnered with processors that understand the obstacles that may occur when trying to obtain and process a merchant account for Adult Content and Adult Products. Our processors support a wide variety of the adult industry including audio text, video text or digital content services accessed via phone or Internet. This includes non-face-to-face adult content video text and audio text services and DVD rentals. Along with our processors, we work side by side to ensure merchants receive excellent customer service and support to give their business the best chance of longevity in the Adult industry.