Payment processing — especially in the adult industry — is the foundation of the commercial funnel and the lynchpin in the success of any business. The moment when customers pay must be executed flawlessly to prevent turnover and optimize for upselling, future purchases and renewals.
When it comes to payment processing options, there are seemingly endless routes one can take. Which service do you choose? How much are processing fees? How difficult is the system to integrate with your back end? How simple is it to navigate the admin interface? These are just a few of the questions you should ask to ensure finding and securing a relationship with the best payment system for your adult business.
Customers must trust you are keeping their identities and sensitive information like credit card details locked up tight with encryption and closely monitored internal systems.
While it is possible to implement multiple methods of payment, it is best practice to build in a recommended method and promote that as the main form of payment in order to keep your business operating smoothly. Common payment types include credit cards, Stripe, PayPal, cryptocurrency, Apple Pay and bank transfers.
Not all of these are built with the adult industry in mind, so when choosing the right route for your business, there are a few key factors to consider:
COST
Every payment processor has its own fee structure. Some fees are easily outlined, while others are convoluted and can come as a surprise. Try to chart out the fees associated with the options you have identified and choose an option that will ultimately scale with the goals of your business. Some processors are better for small sites, whereas others may appear more expensive at first but eventually even out when your customer base starts to grow.
RELIABILITY
Your payment processor must operate smoothly nearly 100% of the time to prevent churn and keep the money flowing into your business. If you suddenly have a surge in new sign-ups or purchases that your processor cannot keep up with, you will lose what could have been loyal customers. Most payment services will state their uptime consistency, or you can ask their sales team for this figure. Any uptime under 97% is too much of a risk to invest in.
SECURITY
The adult industry is built on trust. Consumers of adult products and services most often want their identities concealed. If their information is improperly handled or gets leaked, your business will have a massive PR disaster to deal with. Customers must trust you are keeping their identities and sensitive information like credit card details locked up tight with encryption and closely monitored internal systems. Most payment processors boast about their security practices, so just be sure their claims are legitimate and not purely meant for marketing.
FRAUD
Between fake online identities, customers who don't want to admit viewing adult content and the high frequency of small transactions for adult websites, payment processing in the industry has been subject to business fraud time and time again. Be especially wary of payment processing services that have red flags on their websites and few or no reviews elsewhere online. It can be tempting to try newer, cheaper processors built for small businesses, but while some are legitimate, many are traps.
SUPPORT
The last thing your team wants to deal with is getting stuck trying to fix payments integration and not knowing who to turn to. Your payments processor should have a robust customer support system should you need to troubleshoot if something goes awry while customers are trying to pay.
You should also focus on rounding out security measures to protect your business. Because while payment processors are essential to your business, it’s also necessary to create sound infrastructure around your integration with them in order to fully optimize the effectiveness of your commercial funnel. To that end, one of the easiest actions you can take to build out a holistic system is to strengthen security. This includes:
- Making sure online accounts are locked tight with two-factor authentication.
- Encrypting your traffic data, files and databases.
- Constantly reviewing team permissions to be sure only those who need to access information can do so.
- Keeping all internal software up to date and free from malware.
- Updating passwords regularly.
Once you have the basics covered, you can introduce payment processing services that will fit into your site like a puzzle piece. Some methods have loose ends due to being stretched thin across industries, while ideal providers deliver solutions specifically optimized for the adult industry.
It’s also key to understand the latest fraud trends, and avoid them. Too often, busy business owners pick the first affordable solution and blindly move forward. According to the Smart Receivables Playbook, 19% of tech firms identify financial fraud as “their top AR pain point.” While your business may consist of a small team or even just you, a one-in-five chance that you will be affected by fraud can wreak havoc on your financials. Why take that risk?
Also, new adult businesses are starting to accept cryptocurrency as payment because of its anonymity. Currently, according to Forbes, the top cryptocurrencies by market cap are:
- Bitcoin
- Ethereum
- Binance Coin
- Tether
- Solana
- Cardano
- US Dollar Coin
- XRP
- Terra
- Polkadot
Because transacting in these currencies is so new, there are many fraudsters looking to reroute your customer payments to their own wallets. Services of good repute can offer carefully coded systems to recognize fraud and avert financial harm.
Ultimately, processing payments for your business can be very simple if you choose the right partner. Sometimes, the solutions that seem the cheapest and easiest to implement are more trouble than they are worth. Trusting the service you use goes a long way towards helping you protect and assess your sales. Poor services can damage business financials and scare away customers, while a solid and robust service can often elevate your business beyond its revenue goals. Keep the helpful tips provided here in mind when deciding on your payment processing strategy. Keep your customers happy and safe, and your adult company will thrive.
Ilya Firsov has a background in the automotive, finance and various adult industries, with experience in sales, affiliate marketing and IT projects. He is currently the head of sales for Certus Finance and responsible for marketing and branding. With a background in high-risk processing, Certus has the ability to process for companies in the U.S., EU, Australia and other regions around the world.
