How to get a Merchant Account for an Online Dating Site
February 6, 2019 | Financial Problems | Jessyka Lee
In 2017 the online dating industry yielded over $415 million dollars. There is clearly a market for this type of business, money to be made with online dating, and a need for this specific service. So how do you get your online dating business set up for payment processing that is reliable and secure so that your customer can easily submit their debit or credit card information?
The short answer is this: you need a high risk merchant account that specializes in payment processing for online dating merchants.
The even shorter answer is: PayKings. We are here to help you reach your full potential with secure and dependable payment processing for your online dating merchant account.
As web-based companies offer convenient and efficient ways of handling a growing customer base, it comes as no surprise that online dating sites have become increasingly more popular in recent years. With people moving for work or college to big cities where they have no social connections, online dating websites provide them with a way of reaching out to like-minded and compatible peers.
Some online dating websites are designed for singles seeking partners who share their religious or ethnic background, while others invite prospective matches to bond over mutually shared hobbies, interests, and passions. Factors like these are an excellent way to help customers widdle down the dating pool and better their odds of finding special someone, which explains the reason why online dating websites are springing up daily and are so successful.
How do I Choose a Payment Processing Company?
Choosing the wrong company or aggregate for your payment processing can be quite detrimental for the success of your business. If your merchant account is frozen or terminated 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 screeching halt until payment processing is back up and running smoothly again.
Not all high risk merchant account providers are created equal. When considering your options for an online dating merchant account, think about the specific demands of your business, and try to find a supplier that meets those requirements. If your online dating site has an global customer base, you will have to have the ability to process several different kinds of currencies.
Some payment processing providers will supply you with online marketing tools that will make it easier to reach your prospective customers.
Your needs are as unique as your organization, so don’t be afraid to ask questions when approaching a credit card processing provider about a high risk merchant accounts.
While it may be a little more difficult to acquire an online dating merchant account for your online dating website than for other business types, accepting credit card and debit payments from your customers is essential in the world today, and PayKings can get you right where you need to be.
Why are Online Dating Merchant Accounts Considered High Risk?
There are a few core reasons that online dating merchant accounts are considered to be high risk. The first one is due to incurring an excessive number of chargebacks from members or clients who decide to subscribe to your service and end up not finding their “perfect match” in a short amount of time, which leads them to calling their credit card company to file a chargeback claiming that you didn’t deliver the services that were promised.
Another big issue that underwriters come across for online dating merchant accounts sometimes are that the company’s website is actually just a front for another (typically illegal) business like an escort or prostitution service. This can easily be avoided if the underwriters at the bank or payment processing company thoroughly vet the website affiliated with the online dating merchant account before approving their application.
Many times the biggest hurdle on the road to success for online dating businesses is acquiring an online dating merchant account. In its simplest form, any successful company needs to earn cash, which means it needs a method for accepting payments from clients.
For businesses like yours that are only online and rely exclusively on ecommerce, an online dating merchant account is essential in being able to accept debit and credit cards as your primary form of payment processing.
Despite of the highly profitable nature of online dating websites, most banks will turn away a business owner seeking to open an online dating merchant account. This decision is solely motivated by financial gain; because of the nature of the market, online dating companies are at a higher risk for chargebacks and fraudulent activity by clients than the normal merchant.
Luckily, not all of payment processing companies are quite so hesitant. Companies like PayKings specialize in catering to the specific needs of online dating merchants and those in industries deemed as high risk.
These companies assume the added risk of frequent chargebacks related to businesses like yours.
Conditions to apply to the businesses that require a high risk merchant account and will tend to look somewhat different from more traditional accounts; for example, they may require a cash reserve to be maintained to cover the cost of potential chargebacks, and the prices for payment processing are usually a little higher than those associated with lower-risk accounts.
However, knowledgeable companies like PayKings that have experience in your industry can help soften the blow of these potential pitfalls are often times offset by the very fact that you’re dealing with a payment processor that knows the ins and outs of your company and will not hold the unpredictable behavior of your customers against you.
As they say – knowledge is power, so don’t get caught off guard or stuck with ridiculous payment processing fees by not doing the research work ahead of time and choosing the wrong option for your payment processing needs — PayKings has everything you need for the longevity and success of your online dating merchant account. Click here to learn more and to start accepting credit card payments in as little as 5 days.
February 6, 2019 | Financial Problems | Jessyka Lee