No matter how you refer to them, gentleman’s clubs, strip clubs, and exotic cabarets are here to stay. These businesses have been around the United States in some form for hundreds of years. So, it may come as a shock that these very lucrative businesses are considered high-risk. Credit card processors and banks often do not want to support these merchants due to their higher risk or reputational issues.

We know that owning an adult club can thrive into a very successful business. The industry reaches over $8 billion in revenue each year and continues to show massive growth over the past several decades. However, it’s not all roses for the owners of these establishments.

As the industry grows with more and more gentlemen’s clubs, we are seeing more merchants looking for secure and effective payment processing. These business owners should be sure they are partnering with a professional merchant service provider that understands their business and has worked with gentlemen’s clubs in the past.

Some details to be aware of when seeking a suitable provider are excellent merchant support, reasonable terms, robust chargeback protection, and the proper processing equipment to put your establishment on the right path.

Regarding chargeback protection, this can often be the number one feature a gentleman’s club owner requires. Since customers have a higher tendency to dispute a charge during an intoxicated evening, merchants need to be sure they protect themselves and their business.

Fraud is also rampant in strip club payment processing, so merchants need to be sure they are collecting signatures, copies of identification, and even photos of the customer. This may seem extreme, but when a customer attempts a chargeback of $2000 from the night before, a merchant needs to have the ammo to fight this dispute.

Since credit cards have become the main form of payment nationwide, strip club owners need to be ready to accept credit cards for everything from food, drinks, VIP room access, and even dances. Many clubs will allow a customer to utilize the cash advance feature on their credit card and give the customer club branded money in exchange for the transaction. This money can only be spent in the club, but it can also be charged back just like any other transaction. For this reason, the merchant needs to be very careful with how they accept this form of payment.

ATM’s are also very popular in gentleman’s clubs, but if a customer doesn’t have the money in their checking account, they will turn to their credit card for payment.

Performance Card Service understands the adult club business. We have partnered with an extensive network of processors and banks all over the world that proudly support gentleman’s clubs. If you have had issues in the past with approval or didn’t particularly like your previous provider, we may be able to assist in showing you a different experience that will satisfy even the most scrupulous of business owners. Contact us today to discuss processing options for your gentleman’s club!

Ready to Apply for a Merchant Account?
Contact Us
Or Call (866) 727-7475