Adult Entertainment Payments: A Practical Guide

The Reality

Adult entertainment is a legal industry with legitimate payment needs. Most mainstream PSPs won't touch it. Specialist processors exist and can provide reliable service.

Key Challenges

1. Limited PSP Options

MCC 5967 (Adult Digital Content) is rejected by most acquirers. Brand risk concerns, content policy restrictions, and regulatory complexity limit the market.

2. Higher Rates

Expect 5-8% processing fees. The limited competition and perceived risk justify higher margins for processors willing to work with the vertical.

3. Chargeback Risk

Privacy concerns lead to "friendly fraud" - customers disputing charges they don't want appearing on statements.

4. Compliance Requirements

Age verification, 2257 compliance, content guidelines - regulatory requirements add operational complexity.

Finding Processors

Work with specialists who understand the vertical
Verify they have genuine acquiring relationships
Check their stability - longevity in the vertical matters
Understand their content restrictions

Reducing Chargebacks

Billing Descriptors

Use discreet descriptors. Many processors offer "soft" descriptors that don't explicitly reference adult content.

Customer Communication

Clear billing notifications, easy cancellation, responsive support reduce disputes.

Age Verification

Strong age verification reduces "I didn't authorize this" chargebacks.

Alerts and Prevention

Verifi and Ethoca integration allows resolving disputes before they become chargebacks.

What to Expect

Processing rates: 5-8%
Rolling reserve: 10-15%
Longer approval process
Content review requirements
Limited payment method options

Key Takeaways

Specialist processors exist and provide good service
Expect higher costs than mainstream verticals
Discreet billing reduces chargebacks significantly
Strong age verification is essential
Compliance with content guidelines is non-negotiable