- August 9, 2018
- Posted by: ipaytotal
- Category: High Risk Merchant Accounts, Online Dating Merchant Accounts, Payment Gateway
Online dating is quite popular nowadays. And there are just too many sites on the net promising to find your soul mate through their services. Because of the advancement of technology and the lack of time, most people will now communicate and mingle with friends and find their one true love through the internet.
And it is the perfect time for matchmakers to create their own online dating services and start making money. And while you’re busy setting up your website and all, you should never forget to obtain a merchant account for your online dating services.
Understanding an Online Dating Merchant Account
A merchant account is a kind of bank account that allows a business to handle and accept payments via credit and debit cards.
While most businesses won’t have any trouble obtaining a merchant account, a business offering online dating services is a bit different. This is because online dating services fall under the high-risk category. And most financial institutions and banks are not willing to do business with those high-risk businesses.
Why Is The Online Dating Industry Considered A High-Risk Business?
The dating industry is a booming business. Because of people’s busy schedules and needs for fast communication, they find that the internet allows them to easy find a friend and a lover.
Although there has been a huge growth in the online dating industry, banks and processors continue to see online dating as a risk. Most banks and processors have labeled the adult online dating industry as a high-risk because of the following reasons:
- Customers’ remorse
- Strict laws and regulations
- Adult-themed contents
- High chargeback rates
Chargebacks are the main reason why the online dating industry is considered a high-risk. It occurs when a client using the website forgot to cancel their subscription or does not find a suitable match in the dating pool. When customers are not satisfied with the services or feel like the services are failed to deliver, they may file for chargebacks with their credit card issuer.
Other businesses use this industry to hide illegal activities such as promoting prostitution and money laundering that clearly violates laws and regulations. They apply for a fake account in order to use it as miscoded and malicious works that are punishable by law.
In addition, instead of unmarried clients, there are more married clients who are active or frequently use online dating websites. And when their spouse discovers this infidelity, it may cause filing of suits and damaging the reputation of the business.
In general, dating services are established as adult-oriented services. And most online dating services offer adult-themed contents that can raise an eyebrow. Most banks and processors would not like to be associated with businesses that cause controversies.
Online dating websites vary in their practices and rules. Some of the following categories include:
- Adult dating website
- Niche dating website
- Religious dating websites
- Specific culture or races dating websites
- Dating websites for seniors
- Dating websites that focus on specific geographic locations
- Compatibility websites
Do I Really Need A Merchant Account Before Starting My Online Dating Business?
Although the online dating industry is labeled high-risk with most banks turning away from this industry, it should not be a reason to ditch the process of obtaining a merchant account.
Getting a merchant account for your online dating business allows you to take payments from your customers using credit or debit cards. Ditching a merchant account means that you are losing a lot of potential customers and profits.
In addition, getting a merchant account also helps expand your business. As more and more customers find and use your websites you have more cash flowing in and you might want to upgrade to international accounts. An international merchant account allows you to process multi-currency so you can offer your services around the globe and reach new potential audiences.
Obtaining a Merchant Account For Your Online Dating Business
If you are planning to start an online dating website then you need to get a merchant account. It can be a long and extensive process of underwriting and processing, given that your business falls under the high-risk category but it will be definitely worth it.
Merchants on the online dating business can find merchant account providers that specialize in a high-risk business. Although you can still go to regular banks and providers, but expect your applications to be denied several times.
With a high-risk merchant account provider, your chances of getting approved increase since these providers are willing to take the risk for your business. When applying, you need to provide everything that the provider asks.
Take note, that before you apply for a high-risk merchant account, you need to show that your business is active and that the official website of your online dating business shows all information on your services and products and is always readily available.
The provider will then analyze your business as well as your documents in order to have a look and feel on what your business really is. Once the provider approved your application for your high-risk merchant account, you can now integrate your website with their payment gateway and start accepting debit and credit card transactions.
Some providers will also require you to integrate descriptors as well as chargeback notification and alert services so you can handle and manage your chargeback and reduce the return ratio.
While most providers give you all your needs and leave you to do it yourself, there are others, like iPayTotal, that will be with you all through the process— from your application to payment gateway setups to managing your account.
Here at iPayTotal, we don’t judge you with the risks that your business may give us, but look at what your business can offer us. We are experts in high-risk businesses and have the right solutions and tools in order to give your business an ideal payment processing solution with competitive pricing and rates.
Still in doubt?
Well, we’re always up for a discussion and will answer any queries about our payment processing solutions. You can call us anytime at + (44) 800 776 5988 and speak with a live merchant account manager about the possibilities.
Too shy to talk? Drop a message at [email protected].
Or you can also fill in a short form and our representatives will contact you immediately within 4 hours to assist you further.