Sex is the most powerful natural instinct in humans. According to the theory of famous psychologist Sigmund Freud, sex even contributes to developing a person's personality. The impact of sex is still a research topic for humans, as there is more to know about its impact on humans. But it is clear that it is one of the strongest human urges. This is the reason why the sex toys market is witnessing an all-time high. In 2022, the adult toy market was valued at more than 30 billion US dollars worldwide. Despite the ongoing and predicted hike in this business industry. Adult toy merchants are not able to take full advantage due to a lack of payment processing services. Because selling sex toys is a high-risk business. Thus, merchants need high-risk payment processors for adult payment processing.
Finding a suitable high-risk payment processor according to
the adult toys business is not easy. Because of the restrictions of the
business industry. But it does not mean that there are no payment processors
for adult services. To find suitable high-risk payment processors, an adult toy
merchant just needs to identify the business requirements that he wants from
payment processors.
Why does
adult payment processing require high-risk payment processors?
The adult toy business is considered a high-risk business
by payment processors, so it requires a high-risk payment processor for adult
payment processing. Here are the responsible factors for the related scenario:
Regulatory
issues
The sex toys market is unregulated, or it's better to call
it an uncontrolled commercial sector. because there is no set of laws and
guidelines that regulate operations in this business market on a global level.
Despite this, almost every country on the planet has its own set of laws
related to business that have to be followed by merchants and payment
processors. But the problem is that the majority of the regulatory authorities
do not have a clear set of regulations, which makes it difficult for a payment
processor to comply with them. And as a result, no one wants to provide payment
processing services to sex toys merchants, and their business is considered a
high-risk business.
High rates
of chargebacks
The adult toy industry has such a high rate of chargebacks
that even high-risk payment processors think twice before providing service to
an adult toy merchant. Due to the massive amount of chargebacks, the number of
fake chargeback requests automatically increases in this business. And fraud
chargebacks are the most disliked by merchants and high-risk payment processing
service providers. Even high-risk payment processors hesitate to take on such a
risk; therefore, they classify the adult toy industry as high-risk in order to
avoid the repercussions of giving payment processing services to such a
business.
High volume
of transactions
Processing a large number of transactions on a daily basis
would definitely be among the last few things on high-risk payment processors'
lists of to-dos. The cons of having a massive number of transactions to process
are that it can cause delays in payment approvals. As well, it prepares a
proper environment for payment-related frauds such as money laundering due to
the colossal number of transactions, which makes it impossible to track such
malicious transactions. This is the reason why the sex toys business is listed
among the high-risk businesses.
Other
reasons
In many countries, discussing sex publicly is still taboo;
therefore, payment processors think it's good to maintain a distance from such
businesses due to reputational factors. However, it is the least concerning
factor to be considered a business as risky.
Considerable
features in high-risk payment processors for adult payment processing
Support for
various currencies
An essential feature of high-risk payment processors is
compatibility with many currencies. The reason behind this is that the
restrictions on adult toys in some countries have made cross-border purchases
more common in the adult toy industry. Adult payment processors with
multi-currency compatibility are highly regarded by merchants since they speed
up payment approval and reduce payment processing fees by avoiding currency
conversion. Because foreign currency payments cannot be processed without first
being converted. Except for the online payment processors that can accept
payments in foreign currencies.
Data
protection and fraud prevention
One of the main factors behind the classification of adult
toys as a high-risk industry is concern about data security. For retailers in
this industry, the uncontrolled commercial sector further raises their risk of
online fraud. Due to the need to protect customers' data, compliance with the
highest payment card data security standard in the world (PCI DSS) is a
requirement for all adult toy payment processors. To protect the precious
payment-related data of the customers.
Protection
from fraudulent chargebacks
For adult product sellers, high chargeback rates are
already a major issue. But if a chargeback request is fraudulent, it becomes
more unpleasant for a merchant. Because the merchant would then have to pay out
of his own wallet. For this reason, adult businesses must have high-risk
payment processors with security against bogus chargebacks. Additionally, a
payment processor for adult payment processing must have fraud detection tools
to spot such fraud efforts.
A large
banking network
For the processing of adult payments, a sizable banking
network is crucial for high-risk payment processors. For quick payment
processing and timely payment approvals, a financial network with several
alternatives for acquirer banks is always a preferable choice. If one acquirer
bank is having problems, there are several other acquirer banks to use to
continue processing payments.
Taking care
of a large number of transactions
Another major issue with adult payment processing is that
high-risk payment processors have to manage a large number of transactions. If
not managed properly, late payment approvals might be a result of the high
volume of daily transactions. Because of this, an adult toy merchant account
provider needs to be able to handle a large number of daily transactions. so as
not to delay the approval of the payment.
Regulatory
compliance
High-risk payment processors for adult payment processing
need to adhere to the sex toys industry's regulatory requirements to properly
offer high-risk payment processing services. If not, the sex toy retailer and
payment processing service provider may be prohibited from conducting business.
The most
suitable high-risk payment processor for adult payment processing
PayCly is a superb adult payment processing provider that
offers all the answers to close the payment processing loopholes in this
business at a very reasonable cost. It is one of Southeast Asia's most
well-known high-risk payment processors. The reason why it is regarded as one
of the finest payment processors is that it offers excellent adult payment
processing at possibly one of the lowest costs in the Southeast Asia region.
Advantages
of PayCly's adult payment processing service
●
Protection from fraudulent chargebacks.
●
Support for more than 100 currencies makes it
simple to take payments from abroad.
●
Use of AI and machine learning-based fraud
prevention solutions.
●
On-time payment approvals as a result of
improved transaction volume management.
●
a unique merchant ID for convenient
identification and accurate data archiving.
●
Anytime, answers to any issues relating to
merchant accounts are provided by 24/7 customer service.
●
PCI DSS compliance is used to protect extremely
private payment card information.
Summing up
We hope that after this, finding a suitable payment
processor for adult payment processing will not be an issue for you. Now you
can get one according to your business needs by considering features such as
data protection, fraud prevention, a large banking network, etc., or you can
simply choose PayCly to get high-risk payment processors in a more convenient
way because then you don't need to do research as you already have significant
details about PayCly.
Apart from payment processing services, it also provides
adult merchant accounts, and that too with instant approval. You just have to
follow the steps below to get one for yourself.
How can I
set up a merchant account with PayCly?
The following conditions must be satisfied in order to
create a merchant account:
●
Visit the website's home page.
●
"Apply Now" is an option in the
drop-down menu in the top-right corner of the screen.
●
The registration form will immediately display
on your smartphone's screen.
●
The application must have all required fields
filled out.
●
To continue, select "Submit."
You can simply get one of Southeast Asia's best adult toy
merchant accounts by following these guidelines.
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