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Looking For Merchant Account Companies? Read This!While there are merchant account companies which accept Adult Business and Gambling by providing offshore accounts (merchant accounts held in foreign banks), it is not advisable to pursue these types of businesses. Here are several good reasons why: Gaming/Gambling 1. Active merchant account services which provide Gambling and Gaming on the Internet are now illegal in the USA. Merchant account companies, which help Gaming and Gambling expand it’s way through offshore banks are taking a big chance of being investigated by the FEDS!
Adult Businesses 2. Most Hard Core Adult businesses are turned down in the USA. They seek offshore accounts for their merchant account approval. Some of these companies may include child porn links and other illegal subjects. Merchant account companies, which accept this business, are not keeping a moral compass as to what they are contributing to.
Future Sales (Most not all) 3. Annual memberships, lifetime memberships, yearly dues, yearly subscriptions etc are unacceptable to the merchant account industry in most cases. Why? VISA and MasterCard will allow cardholders to charge back transactions a full 6 months after full delivery. This means that a cardholder would have 18 months to charge back yearly membership fees or annual subscriptions. This is a tremendously high risk to the processor and processing bank. Lifetime access to anything means that there is virtually no time limit in which to initiate a charge back if a cardholder has the urge to. For Example: Imagine 500,000 people buying lifetime access to an ISP for one price. Let’s say $300. Now, 2 years later, the ISP declares bankruptcy and all access to the service is cancelled. Now run the numbers. 500,000 subscribers times $300 equals 150 Million dollars. That’s right $150,000,000 can now be fully charged back with all accompanying penalties to the processor and the processing bank. This is not a completely fictitious example.
On-Line Pharmacies 4. Processors and on-line pharmacies are taking a risk. The Federal government has created tough laws for on-line pharmacies to do business. While there are merchant account providers accepting this business, they are taking a risk.
Unacceptable List (Expanded)
Psychologists Psychiatrists
Hypnotherapies
Internet Sales of Cigarettes (Cigars are OK) |