The online dating business is booming with more and more adults looking for the “one” online. While there are many free dating apps out there, you have to make money somehow and if you want to charge for your online dating website or app, you are going to want to explore the options of online dating merchant accounts.
Why is it hard to get this merchant account?
It can be difficult to come across online dating merchant accounts because an online dating site or app is considered a high-risk business. Since it’s considered a high-risk business that means banks and other traditional payment processing companies won’t work with the business because of the high amount of fraudulent activity that can occur. Fraudulent activity means bad news for the payment processing company, so they would rather not take the risk on these types of businesses.
Why are online dating businesses high risk?
An online dating business can be considered high risk for a number of reasons. First, it’s the adult content and these sites can sometimes be used as fronts for illegal businesses like prostitution. There are also high levels of chargebacks because this is a type of business where a lot of people have buyer’s remorse and will initiate chargebacks on their credit cards instead of canceling their subscription.
What to look for when in the merchant account?
If you are a high risk business, such as an online dating merchant account, then you want to look for a company that will specialize in high risk merchants and can make sure that you can still charge your customers and make money with your business. It’s not only necessary to work with a merchant that will accept you despite your high risk status but one that can also understand the needs of high risk business so they will work with you and give you the services that need to keep the cash flowing and your business safe. You also want your payment processor to be in the U.S. so if you ever have questions you won’t have a problem getting support.
How to find this type of online merchant account?
This type of high-risk business requires you to do your research. There will be a lot of companies that may not offer you the best deal and, because online dating is a high risk, the options you can choose from are limited. Researching is key, and take your time comparing different companies to see what types of payment processing they will offer, what kind of rules and regulations you will abide by. Learn what happens if chargebacks do occur and is there chargeback insurance. You also want to compare rates. Since the rates are likely to be higher because of the business status, it’s necessary to compare so you can still make a profit and earn money with your business.