Online dating is a thriving industry.From Tinder to eHarmony, Bumble, Match.com, Happenand JDate, there are numerous dating websites and apps around. Since online dating is a popular trend, many Offshore payment service providers offer credit card processing to this industry. However, some do not prefer working in this industry because of few factors like High Chargeback Ratio, reputation damage and the tendency of some fake merchants to use it as a Miscoded solution so that they may sell something else that may be illegal. There seems to be one for every niche, making this a profitable and helpful business venture. For those looking for a new business venture, this is great a great option. But, one of the biggest issue comes when you are looking for a merchant account.
When you are wanting to start an online dating site, you will definitely need an online dating merchant account. Be sure to go over all of your options and ask questions, as this is one of the most important business decisions you will ever make.
WHY IS ONLINE DATING SITES ARE High risk businesses
Approximately 15 % to 18% USA population is dependent on online dating and it generates great revenue in billions. As we know there is a lot of potential in this field. Just like adult dating service companies have their own set of rules and regulations, so do the providers of merchant accounts.
Financial institutions have labelled adult online dating businesses as high risk for reasons mentioned below:
- High Chargeback Rates
- Adult Themed Content
- Strict Laws and Regulations
- Buyer’s Remorse
Do I need a merchant account before I start my Online Dating Website?
Getting a merchant account is an extensive process that involves a lot of underwriting. The underwriting team at the payment service providers office or the acquiring bank starts by analyzing the business as per theapplication and documents provided. Also keep in mind that business must be active before applying for a merchant account. The merchant should have a website that clearly shows all the products and services. The underwriters will also ask for the required KYC documents which is mandatory.
Choosing the wrong payment processing company or aggregate for your payment processing can be quite detrimental for the success of your business. If your merchant account is terminated or frozen all together, due to being dropped for being a high risk merchant, you won’t be making the kind of money your business has the potential to make. If your cash flow stops, so does access to your services and all business transactions come to a sudden halt until payment processing is back up and running smoothly again.
So we would always recommend you to apply for merchant account after starting your business. In case if you are sending an application before starting the business then there is a high possibility that the payment service provider may not consider or ignore your application. Some payment service providers also have internal rules that restrict merchants to re-apply within a specific time frame. If the application declines because of incomplete documents thenit might create challenges when you reapply.
The online dating business has many risks for both the merchant and merchant service providers. This is the main reason why you will encounter many challenges when applying for your dating merchant account and payment processing. However, we at iPayTotal are here to make the process easy and quick. Get in touch with us now to get instant access to your online merchant account, online dating credit card processing, and online dating payment getaway among other online dating merchant solutions.