Over the last year, several of our merchants have found themselves caught up in litigation over compliance with state age verification laws. Recently, Segpay itself was pulled into the spotlight, facing scrutiny over Florida’s AV statute, HB 3. These stories inevitably get picked up by both industry and mainstream news outlets. When that happens, negative press coverage can not only damage a merchant’s reputation, but also potentially interrupt payment processing, striking at the heart of your business.
This month, we share the keys to surviving negative headlines — and how to safeguard your accounts when your company unexpectedly finds itself in the media spotlight.
The more transparent and responsive you are, the faster your partners will regain confidence, allowing you to refocus on operations and solutions.
Why Negative News Matters
Whenever one of our merchants is involved in some type of negative news, it triggers an inquiry from our acquiring partners. For banks, compliance isn’t just about following regulations. It’s about protecting their reputation and ensuring they meet their regulatory obligations. If banks feel uncertain or exposed, they may close merchant accounts without hesitation.
The best way to head this off, and to make sure the bank remains comfortable with the situation and with your business, is to stay proactive. It is important to spot potential problems before they escalate. When problems do arise, communicating with the bank before they identify the concern on their own is key. The “secret” is not to hide from problems but to surface them early, frame them honestly and clearly show how solutions are being put into place.
Five Essential Steps
So, what should you do if your company suddenly finds itself in the headlines? Having a clear crisis playbook helps you respond quickly and maintain trust. Here are the first things every merchant should keep in mind when bad press hits:
- Call your attorney. Let your legal team guide what you can and cannot say — to the public, partners, vendors and staff. They’re your experts and they’ll be representing you, so follow their lead closely.
- Communicate with staff. Senior leadership should promptly brief staff on the situation, the company’s stance and the plan for resolution. Make clear that leadership will handle all external communications, while also keeping an open-door policy for internal concerns. Remind staff their main job is to keep day-to-day operations and customer care running smoothly.
- Prepare a response for banking partners. Draft a formal response for banks and key vendors. Explain your current situation and compliance steps. Expect follow-up questions and answer promptly. The more transparent and responsive you are, the faster your partners will regain confidence, allowing you to refocus on operations and solutions.
- Control external messaging. Less is more. Issuing a short, deliberate statement is usually best, while you allow time for attention to the story to quiet down. It’s wise to have “holding statements” prepared in advance. These are brief, factual notes that acknowledge the issue without speculating or over-explaining. Having pre-drafted language ready enables you to respond quickly and consistently if contacted by press or on social media. Your marketing and communications personnel should also monitor social channels and trade media, to track how the story evolves and rapidly correct any misinformation, using approved talking points to help control the narrative. Internal alignment between legal, compliance and marketing teams will ensure that what is said externally is accurate, consistent and confidence-building.
- Keep key stakeholders informed. Maintain transparency with essential partners as you work toward resolution. Demonstrating openness reassures them and safeguards long-term trust.
Properly managed, these crucial steps will not only help resolve the immediate issue, but also build credibility for the future.
For adult industry merchants and the processors that support them, negative news doesn’t have to equal negative outcomes. While nobody welcomes legal challenges, moments that test your organization’s creativity, resilience and leadership can also spark improvement, strengthen compliance and renew trust with banking partners. The difference lies in how you prepare, respond and turn challenges into opportunities for growth.
Cathy Beardsley is president and CEO of Segpay, a merchant services provider offering a wide range of custom financial solutions including payment facilitator, direct merchant accounts and secure gateway services. Under her direction, Segpay has become one of four companies approved by Visa to operate as a high-risk internet payment services provider. For questions or help, contact sales@segpay.com or compliance@segpay.com.
