educational

Adult Processing Perils

Processing adult products, services and memberships, according to Visa and MasterCard, is a high-risk business. Most banks shy away from all of us in the adult Internet because in their eyes, we are the ne'er-do-wells of the Internet and are more interested in making a fast buck, rather than the long-term business buck. And in general, banks, which live under the strict monitoring of Visa/MasterCard, tend to be a bit gun-shy of the adult webmaster business model.

Well I say, "Bah!" Times have changed. Real, fully functioning businesses are in this industry. I can understand banks not wanting to pay large penalties for chargeback rates above the allowed limit, and I can understand banks not wanting to associate themselves with the "social stigma" of our industry, but I refuse to stand here and have adult webmasters be considered "high risk."

Don't get me wrong here — I know there are bad apples in our crop, but there also are rotten fruit among the masses in the mainstream. While we keep chargeback ratios to a slim minimum — and most do comply — why then are we the culprits of high-risk processing?

No legitimate adult webmaster wants chargebacks. No adult webmaster wants to lose money or their merchant account. Every chargeback has a reason. Did you offer the wrong message on your tour? Did you happen to sell a membership to someone whose wife stumbled across the credit card statement and simply refuses to believe her husband is into midget porn? All of these are viable reasons for chargebacks, but there are also methods adult webmasters have developed to reduce these situations.

The adult Internet works very hard to perfect and create ways in which the dreaded chargeback is kept below the minimum, yet maximum level. We have insane fraud scrubbing, real-time data and even manually observed transactions. We have to do this, remember? We are the high-risk accounts of the world. Lose your processing and you lose your ability to remain viable.

It is apparent the term "high risk" may just be a reason for hesitation with banks and processing. Show me a smaller, qualified webmaster with a great tour, a great website, and I will show you a chargeback ratio that only Amazon.com can dream of. Show me a successful affiliate program, and I will show you a team in place to monitor transactions through various means to keep chargeback ratios low, low, low.

My advice is to continue to work on your sites, your products and services. Develop your skills to retain your money. Be true to your customers and surfers, and in the end, it will pay off. Shed the stigma of the adult webmaster as "high risk" and instead wear this label with pride; for we, as adult webmasters, truly are becoming the e-commerce model for excellence.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

How Rolling Reserves Affect Cash Flow and Merchant Stability

You log in to your payment processor’s dashboard, discover they are withholding 10% of your sales, and immediately assume something has gone wrong. In reality, everything is working exactly as intended.

Jonathan Corona ·
opinion

What Federal Age Verification Could Mean for Adult Websites

Our industry has grappled with a patchwork of confusing and burdensome state age verification laws for the past couple of years. But that landscape could change quickly after the House passed the Kids Internet and Digital Safety (KIDS) Act (H.R. 7757) by a vote of 267-117, marking a significant federal step into this space.

Lawrence G. Walters ·
opinion

The Website Footer Requirements Every Adult Merchant Should Know

Since I started in this business 25 years ago, I've watched website footers evolve from a simple collection of links designed to help with SEO into important tools for meeting compliance and regulatory requirements, improving the customer experience and reducing chargebacks.

Cathy Beardsley ·
opinion

Why E-Payment Diversification Matters for Merchant Stability

Match payment methods to your customers. Look at where your customers are located, how they prefer to pay and which products they purchase. A business with significant European traffic may benefit from SEPA or Pay by Bank, while a subscription-based business may prioritize ACH or cryptocurrency. Add the payment methods your customers are most likely to use, as not every option is available.

Jonathan Corona ·
trends

AI at Work: The Tools and Practices Powering Creativity, Commerce and Compliance

For years, artificial intelligence felt like the plot of a science-fiction movie. Pop culture gave us Skynet from “The Terminator,” the replicants of “Blade Runner” and countless visions of machines replacing human creativity altogether. AI was cast as either humanity's next great breakthrough or the beginning of a dystopian future.

Jackie Backman ·
opinion

Key Questions Online Merchants Should Know About PCI Compliance

Choosing a payment provider involves more than comparing features and pricing. It's also about trusting that your customers' payment information is being handled securely. Every August, Segpay is recertified as a Level 1 PCI-compliant service provider, a milestone the company has achieved for the past 20 years. Having helped write Segpay's original PCI policy documents more than two decades ago, I've seen firsthand how PCI compliance has evolved.

Cathy Beardsley ·
profile

New Moon Network's Savannah Sly on Turning Lived Experience Into Advocacy

Savannah Sly is the first to admit she didn't always understand sex work. At 18, she was an art student in Boston, working part-time at a box office and, as she puts it, "broke as a joke." While looking for ways to make ends meet, she often found herself browsing Craigslist's adult ads, intrigued by the women advertising their services.

Jackie Backman ·
opinion

How to Safeguard Your Website Against CIPA Claims

There is a new wave of lawsuits targeting online businesses, including adult websites. These suits involve the California Invasion of Privacy Act (CIPA), and they are becoming increasingly prevalent. In fact, three different clients of my law firm were recently served or threatened with CIPA lawsuits — all in the same week.

Nick Zargarpour ·
opinion

How Clear Talent Contracts Can Save Time and Money

The adult industry has always been defined by its ability to evolve. It embraced online distribution before much of mainstream entertainment did, pioneered subscription-based business models, and continues to evolve in areas ranging from streaming to AI.

Corey Silverstein ·
profile

Jerkmate's Lili L. on Dropping Beats to Fuel Creator Success

Long before joining the Jerkmate team as a marketing strategist, Lili L. was the kind of person who always felt like she needed a new challenge.

Women In Adult ·
Show More