Web Hosting Talk : Web Hosting Main Forums : Ecommerce Hosting & Discussion : Merchant Account for "adult" website.

[aingaran]

Hi guys,

I have a client who is looking for a merchant account for an adult website.

It's not a porn website, but rather a swingers website.

Couples signup (this is where the merchant account comes in.) and login and search / browse through profiles for other couples / swingers.

Can you please point me the right direction?

Thanks,

[cartika-andrew]

Hello,

Most providers would look at this as a dating site, rather then an adult site.

If youre looking for a true internet merchant account, most of the major players will accomodate you.

Authorize.net (with any of the various gateways) in the US
PSIgate in Canada (they are a little more wary of any adult content, so may have a more difficult time with them).

[cdgcommerce]

Actually - I'd advise against Authorize.Net as the gateway for this particular application and here's why... Authnet has an *extremely* strict "non-adult" policy that they do enforce. They even go so far as to cancel accounts for Web hosts that just -host- adult sites.

So... you wouldn't want to take the risk that you may suddenly get shutdown at some future point in time due to that.

Also, Authorize.Net is just a gateway. You will still need a merchant account with a provider that can underwrite that kind of an account.

My suggestion would be to setup a merchant account with such a provider and perhaps use eProcessingNetwork (if you need Authnet-compatibility) or another gateway for transaction processing.

Some banks/acquirers will consider this "adult" and others will consider it to be a "dating/matchmaking" site that doesn't quite fall into that category. It depends a lot on the content as this is often a grey area for a lot of folks in the underwriting area.

[cartika-andrew]

Sorry,

But this is one time Ive got to disagree with Chris (which wont happen too often)

Authorize.net (especially through e-online data) is ok with "adult" content as long as its not streaming video etc. Any physical merchandise and usually memberships (again, as long as its not streaming video) is ok.

Also, I dont think this sort of site classifies as adult content - doesnt sound like theres going to be a whole lof of pornography on the site.

The site does offer a specialized service, with definate adult conentations - but, I dont think its in the same category as your typical porn site.

We resell eonline data/authorize.net - after checking with our rep, we were told this would more then likely be approved.

Feel free to contact e-online data directly and explore the possibility....

[cdgcommerce]

Oh - I'm not talking about it being approved on the merchant account side... that can be done by more than a few different merchant account providers.

I'm strictly talking about Authorize.Net itself as the -gateway- in this case.

AuthNet has a very unusual stance where even though they are just the payment gateway - they are very much anti-adult and will shut down adult-oriented sites.

For instance, there are other WHT threads about this whereby they have shut down Web hosting providers just because they -hosted- adult sites and I've spoken to more than a few merchants who were shut down by them because they products were adult-oriented in nature.

Physical / tangible adult merchandise is often OK with banks but not with Authorize.Net, unless they have very, very recently changed their policies.

To make sure this indeed accurate, I'll check with them right now and post the results in this thread.

[Corey Bryant]

One other thing with this - check around with a few different companies. Some might want a reserve rate - sometimes as much as 25%. It depends on the bank that is actually under-writing it.

[cdgcommerce]

Excellent point, Corey. And a very good thing to ask about for any high risk (i.e. adult, travel, gambling, future deliverables) account with any merchant processor who is willing to underwrite it.

Also, regarding the AuthNet issue, here is a transcript of a chat that I just did with AuthNet regarding acceptability of adult merchants with them to help clarify on that issue:


You have been connected to Cris D..
Cris D.: Hello Chris! How can I help you today?
Chris West: Hello there!
Chris West: Just a quick policy question
Chris West: I am having a discussion with some folks
Chris West: and wanted to clarify something
Chris West: It was my understanding that Authorize.Net does not accept or allow any adult-oriented merchants
Chris West: even if the merchants are providing tangible products, merchandise, etc.
Chris West: is that correct?
Chris West: or is that no longer the case?
Cris D.: correct- that is my understanding
Chris West: ok and one more question
Chris West: is a dating/matchmaking site considered "adult" with respect to AuthNet's terms of service?
Chris West: i.e. specifically the person on the forum is a "swingers site" of sorts
Cris D.: you can email legal@authorize.net about this - they have more of the criteria/guidelines of what is appropriate when setting up an account


So... my suggestion would be to e-mail that address above just to make sure that AuthNet will not potentially have an issue if you want to use them as the payment gateway.

I have spoken to a few merchants that got cut off by AuthNet for both intangible as well as videotext adult-oriented content and it really hurt their businesses and I wouldn't want you to run into a similar issue if you can avoid it.

We do not work with adult merchants ourselves but if you are such a merchant, just be very careful and ask a lot of questions with any merchant processor that you speak with. Make sure you understand the total costs, reserve(s) that may apply, terms and conditions, etc.

There are a number of good options out there but also a lot of companies with questionable merit... so be careful and best of luck with your search!

[cartika-andrew]

Originally posted by cdgcommerce

We do not work with adult merchants ourselves but if you are such a merchant, just be very careful and ask a lot of questions with any merchant processor that you speak with. Make sure you understand the total costs, reserve(s) that may apply, terms and conditions, etc.

Very good advice Chris.....

The reserve rates may be higher with this type of content, and you def want to ask as many questions as possible in order to understand all the scenarios.

After speaking with a few providers, narrow your options down to a few then come back and ask some additional questions specific to those providers.

Chris and others are very familiar with many of available providers and will be able to provide you with valuable feedback.