Merchant Banking for the Sex Industry
Adult/XXX is a high-risk storefront that will require you to find a merchant processor who handles high-risk credit card transactions. If you are over the age of eighteen, you can purchase pornography and sex toys. The problem with this regulation is that it is easy for younger teens to get hold of pornographic videos simply by lying about their age and sneaking their parent’s credit card. Only a few countries have strict rulings in place to prevent adult material from getting into minors’ hands. Germany is perhaps the strictest because they require those who are interested in adult material to go to their local post office with a photo identification card and then fill out an application that is used to order these products or videos. In the United Kingdom, purchases of this nature must be made by a credit card that is only accessible to those who are eighteen or older. This has not stopped minors from fraudulently using their parents’ credit cards.
This is why adult only stores and websites are considered high-risk. The possibility of a charge back occurring is extremely high, especially as a parent receives his or her credit card bill and starts finding the fraudulent transactions. Companies hit with charge backs are more likely to lose their capability for accepting credit card transactions. This can cripple a business in today’s world where 98% of the population is using credit or debit cards for their purchases.
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