Accepting Credit Cards For Adult Entertainment
"adult entertainment product" has different meaning as per different laws of different states. Some jurisdictions may allow adult entertainment products to be sold and marketed freely and others may ban them. The word "adult" itself is non-defined. It can be used to refer to any item that makes sexual performances and/or activities available for purchase, rental, or exchange. So adult entertainment products may include adult films, adult magazines, adult toys, adult DVDs, adult magazines, live shows, and the like.
The adult entertainment industry is huge. There are many websites on the Internet that cater to the needs of the adult entertainment industry. On a typical day, most adult entertainment products are sold and purchased from local adult stores, online adult shops, over the phone and through mail order. Many companies dealing in adult entertainment products process payments and transfer funds in a variety of ways.
Most adult industry merchants list their addresses as PO Boxes, couriers services, or as post offices. Most credit card processing companies allow adult merchants to accept electronic payments at their websites. Almost all credit card processing companies provide some sort of merchant account and some even offer merchant services for a fee.
Adult merchants can be subjected to a variety of legal actions. A common penalty for adult industry merchants is a "chargeback". A "Chargeback" is when a credit card merchant finds out that his or her customer has disputed or complained about an unauthorized transaction. The credit card company will issue a chargeback to the merchant.
The amount of chargebacks varies according to each company. However, most adult industry merchants claim that chargebacks account for approximately 20% of their annual transactions. Credit card processors are becoming increasingly strict about chargebacks. Most of the credit card processors will not process transactions from adult industry merchants if they find out that the customers were referred to them by their customers or affiliates. Find out more on https://www.freakykikis.com/product-category/sex-toys/.
Many adult merchants claim that the credit card companies are taking advantage of the adult industry by charging outrageous rates and fees. The high risk nature of adult entertainment products has led many banks to charge high interest rates for credit cards used for adult entertainment sales. Adult entertainment products often require sophisticated equipment to produce videos, adult movies, and adult magazines. High cost and large production costs also drive up the cost of these products. If adult products are sold in bulk, many banks can't justify the risks associated with adult entertainment products and will deny their loan applications or charge large fees for their service. For more details check it out here.
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