Adult merchants are considered high risk by banks and processors. The primary reason for a high-risk classification is concerns over chargebacks and fraudulent transactions.
Companies processing high volumes of transactions frequently establish multiple adult credit card processing accounts to mitigate the inherent risks of depending upon a single acquiring bank.
US companies establish adult services merchant accounts in both the US and offshore. The biggest advantages of US processing are higher approvals for US cards, lower rates, and faster settlements compared to offshore merchant accounts.
Offshore adult merchant accounts are a good option for businesses that have international customers. Card approval rates are highest when the acquiring bank is in the same region as the customer.
Some international banks have more liberal underwriting policies for adult merchants than US acquirers. And, international banks rarely place caps on volumes. You can process as much volume as needed.
For companies with global customers, international merchant accounts are a wise addition to your processing strategy.