Online Dating

As an example, if your business has what is considered an excessive amount of chargebacks or disputes, your payment provider can hold your funds for up to 180 Days. These terms and conditions should not surprise you as those words are more than likely founds in your payment providers Terms and Conditions.

However, the online dating industry is growing quickly as more people are finding their significant others online.  In 2022, online dating services brought in over 4 billion dollars of revenue, and is expected to continue growing over the next few years.

There are currently over 9,500 dating websites operating world-wide with over 3,000 coming from the North America. This number continues to increase and does not show signs of slowing.

You are probably already aware where the online dating world is going, let’s review how to get started with a merchant account for your business and why it’s important to select the “right” payment processing company that will work best with your business and help you mitigate your risk as you grow.

Applying for an Online Dating Account

Applying for a new merchant account can be exciting, as it means you are anticipating sales in the immediate future. That said, not all payment providers are created equally, and it is super important for you to do thorough research before selecting your Payment Provider.

Fortunately, deciding on a payment service provider does not have to be a monumental task, as you can easily compare providers online before applying.

If you choose to use Aacadia Payments, we make the process as seamless as possible. Once you submit your application and are internally pre-approved for your high-risk merchant account, you will be assigned an account manager at Aacadia Payments.

Your account manager will be there to guide you through the full application process  and answer any questions along the way. Our goal at Aacadia Payments is to always make applying for a merchant account an effortless and transparent process.

See below a list of Online Dating subtypes that Aacadia Payments services, all of these fall under the merchant category code(MCC) 7273.

• Adult dating
• Religious Dating
• Escort Dating
• LGBTQ Dating
• Senior Dating

Aacadia Payments is proud to offer the following for online dating merchant accounts:

• Fast dating account approvals within 24-48 hours
• No Application Fees
• No Set-Up Fees
• No Early Termination Fees
• Chargeback Mitigation Plans
• Traditional chargeback alerts with Ethoca & Verifi 

When applying for an online dating merchant account, you will need the following Information:

• Articles of Inc or Certificate of Formation
• Shareholder certificate or Operating Agreement
• Business Financial History (6 Months Bank Statements or depending on Volume prior years Tax Returns or P&L and Balance Sheet.
• 6 Months Prior Processing History (if applicable)
• Drivers License or Passport of any owner more than 25%
• Compliant Website/URL with appropriate T&C, Refund Policy, Shipping Policy
• Void Check or Bank Letter for Deposits

Aacadia Payments is a payment service provider that has over four decades of experience in high-risk payments with many clients in the online dating industry.

Why Are Online Dating Merchant Accounts Considered High-Risk?

Being considered high-risk is not the end of the world and is very subjective.  Bridal Shops can also be considered High-Risk.

The main reasons that dating merchants will need to apply for high-risk merchant accounts are the following:

• Higher number of chargebacks
• Subscription billing/recurring transactions
• Transaction laundering

Online Dating Disputes

Chargebacks in the dating industry happen all the time. There are several reasons why chargebacks occur and the most common cause is when a member of an online dating site doesn’t like the services for which they are paying. This can cause a form of buyer’s remorse, and rather than contacting the dating company and asking for a refund, they instead immediately file a dispute with their bank, triggering a chargeback.

When this happens, it is known as “Friendly Fraud” – your business provided the service, so from your perspective, there is no reason why a customer can perform a chargeback. Friendly fraud is the main type of dispute or chargeback for your industry.

There is also the concern for married individuals, that are trying to have an affair, if their partner finds the charge on their bank statement, they will most certainly say they did not engage and dispute the transaction.

Every chargeback takes money from your business and depending on the number of disputes, your company is ultimately what suffers most. Working with a payment provider who understands your industry and knows which fraud tools should be utilized will significantly aid in improving your payment experience and reducing your losses and Aacadia Payments can help with this.

Aacadia Payments offers chargeback mitigation and dispute management services to reduce the impact of chargebacks on your online dating business.

Subscription Billing/Recurring Transactions

Most online dating transactions are going to be Card Not Present or Ecommerce transactions. These transactions notoriously have a higher number of disputes  than card-present transactions simply because there is no easy way for the merchant to provide proof as to who engaged in the transaction.

Recurring payments are common in the Online Dating world and you need to set up with a Payment Provider like Aacadia Payments, that makes Recurring payments simple with our Aacadia Gateway.

Transaction Laundering

Online Dating websites can be used as a front for other business activities. Other businesses might be selling something that is now approved by your current provider. An example of this would be someone using a dating website as a coverup for escort services.

Transaction laundering can be a form of money laundering used by criminals secretly to process their credit card payments.

So, how is this done? Transactions are laundered when a merchant submits credit card charges for a business other than the one that was approved by the Acquiring Bank. The “front” can, of course be a website rather than a classic brick and mortar store.

How Long Does It Take To Get Approved For A Dating Merchant Account?

Online Dating Merchant Accounts normally take 2-3 Business Days max once submitted to the Underwriters for approval.

The industry’s standard time is typically between 4-7 Days, however, Aacadia Payments strives to push our applications to approval quickly by providing the correct information initially.

Speed to Approval can also be determined by how prepared your business is. If you have all of the information and documents you need when you contact a payment provider, this can speed up the entire process tremendously.

Online Dating Merchant Account Security

Similar to ecommerce, online dating merchants face many challenges when it comes to security/safety. Aacadia Payments recommends the following to ensure that the highest security standards are upheld:

• Online dating websites should partner with a payment service provider that focuses on security
• Aacadia Payments has a PCI-Level 1 secure payment gateway 
• The Aacadia Gateway was built to support high volume and both low-risk and high-risk merchants. We offer full payment tokenization, which guarantees a high level of encryption and is particularly useful for recurring payments. Your customer data does not need to be stored in a separate, more costly manner, automatically adding more flexibility for our customers.

Did Your Credit Card Processor Terminate or Shut-Down Your Online Dating Merchant Account?

While there are multiple reasons that you could be looking for a new payment provider, one of the reasons could be that your previous processor held your funds or has closed your merchant account. When this happens, it can be extremely harmful to a business as they can no longer process payments or has funds held causing the business not to meet their obligations.  These companies can choose to terminate your account immediately and hold your funds for the chargeback liability period – at least 180 days.

Should this have happened to your dating business, Aacadia Payments would love the opportunity to earn your business.

Dating Merchant Account Fees

When opening up a new merchant account, fees can vary. Since Online Dating is considered High-Risk, your fees will most likely be more than a retail business. However, Aacadia Payments will make sure your merchant account remains open and active and helps you reduce Chargeback Fees and losses.

Aacadia Payments does not charge any Set-Up Fees, Application Fees or Early Termination Fees to Online Dating merchants.

Payment Processing and Chargeback Fees can take away profits from your bottom line. Our goal is to make sure your pricing is affordable and with a banking partner that meets the needs of your dating merchant account.

Does Your Online Dating App NEED a High-Risk Merchant Account?

YES !!

If you are an online dating app without an actual website, you will still likely fall into a High-Risk category. Like online dating websites, apps will need to process credit cards reliably, without always being concerned about the closure of their merchant account.

It is common for dating apps such as Tinder, Match, PlentyofFish, and Bumble to experience many chargebacks. Friendly Fraud is rampant in the Online Dating Industry.

If even the larger Online Dating companies are having these fraud challenges, this means that businesses, with less experience and economies of scale, are more likely to have their merchant accounts terminated, if they do not have the right Payment partner.

If you are a business in the Online Dating Vertical, make sure you partner with a Payment Provider that specializes in helping companies in your vertical continue processing payments.  Learning to manage and mitigate risk and having the right tools in place to battle Friendly Fraud is super important in keeping your account from being terminated.

How To Setup An Online Dating Merchant Account

To set up an online dating merchant account, you will need to follow the steps above to apply. The application and setup process will vary depending on which payment service provider you choose.

At Aacadia Payments, we do as much as we possibly can to make this a streamlined and seamless process. This includes not only the application process but assistance in integrating the merchant account with your payment gateway and ensuring that you are able to go live immediately after being approved.

Once you are approved and properly integrated, you can begin processing payments for your online dating business.

Getting started with a high-risk merchant account is something all dating websites and apps should do for processing payments. If your website starts to take off and you run into some problems with certain payment processors, it can be frustrating and stressful as you will not only have to wait to see funds, you also will have to figure out a high-risk solution.

Why Aacadia Payments is your Perfect Match!!

Aacadia Payments knows the online dating industry well and we also have many years of experience in high-risk merchant accounts. This means we understand the risks associated with the online dating industry, while always offering custom tailored service and security for our clients with an ongoing Chargeback Mitigation Plan to reduce your losses and increase your bottom line.

At Aacadia Payments, we want to help you get approved, stay approved, and grow your dating business into everything you dreamed.