Unfortunately, the majority of ‘mainstream’ payment processors categorize Escort work as ‘high risk’ or, in more extreme cases, completely ban them. Stripe, PayPal, and Square all put some sort of restriction on or completely ban adult services in their terms. This is not a ban that you can code around. As this is a policy decision, no length of integration will solve it. Therefore, the question should not be which processor has the easiest set up. Rather, the question should be which processors actually allow this category and what trade offs do the processors have?
Why this is a unique category
Payment processors asses risk based on chargebacks and public reputation. Adult and escort work services are categorized as high risk almost across the board, leaving individual business reputations and histories irrelevant. This then is a very broad and rough policy rather than an individual case policy based assessment, leaving you with a very legit and consistently well run business with a good track record of no issues during payment. Understanding this is a policy issue helpful to you because what you are actually looking to resolve changes as a result.
High risk merchant processors
High risk merchant processorsThere are a few processors that specialize in high risk categories including adult services, and do approve applications. These usually come hike the usual fees for a merchant account, the possibility of a rolling reserve (i.e. a percentage of revenue withheld as a buffer against chargebacks) and more intense underwriting. The trade off is steep, but for most agencies this is better than the alternative of completely having no safe way to take payment online.
Cryptocurrency Payment as a Choice
Crypto payments sidestep the traditional processor problem entirely, and a growing number of agencies accept it as an option. It’s rarely the only payment method offered, though. Client familiarity with crypto varies a lot, and treating it as one option among several rather than the sole method keeps the booking flow accessible to more people
What to Actually Look For Before Choosing a Processor
When considering processors, do not take the sales representation at face value. Check the terms and conditions yourself. Sometimes, “Adult services” exclusions are buried within a provision prohibiting “prohibited businesses” rather than being listed explicitly. Ask about the chargeback policy and the reserve terms since these concern cash flow more than the stated fee percentage. And ensure that the processor has actually approved businesses in this category rather than just stating that they serve “high-risk” merchants.
Things to Avoid
Things to AvoidFee secrecy, lack of clear chargeback terms, and “Payment solutions” that seem to exist only to “fulfill” the needs of businesses that are not serviced by mainstream processors should all be treated with caution. These typically are the processors that become unreliable and fail to fulfill their obligations when you need them most, during payment disputes.
Where this fits into your website build
Your selected processor must integrate seamlessly into your booking or inquiry flow, and payment should feel secure and professional. Bookings are the first contact a client has with your business. A professional payment experience should not feel like an afterthought. Clients who are paying for the first time can potentially feel uncomfortable using contact forms.
Therefore, payment experience is crucial and should have your developer’s attention before the start of the development process. Payment integration after the development process is a major contributor to the scope creep that we see the most.
Frequently Asked Questions
I can confidently say that both do not allow it. They both mention that they do not support the adult services sector. In addition, they have been known to freeze accounts, and ultimately hold the funds, which is a worse outcome if the account is not approved in the first place.
For some agencies, this is the case. However, this payment method, along with a high-risk merchant processor is a better option for most agencies.
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