An online dating business needs a reliable dating app merchant account and payment processing solution. Moving from one payment platform to another may damage the customer relationship that is required for a business that specializes in recurring billing. Choose your dating app merchant services payment processor wisely!
For online dating businesses, finding a dating app payment processor is difficult for two main reasons.
First, dating apps are considered high-risk industries because of the increased chances of chargebacks from the customer base. Second, there’s a higher chance of fraud on dating software. Many banks view online dating apps as high-risk and will not work with them.
In this article, we’ll discuss dating app payment processing in detail. We’ll talk about what kind of online dating merchant accounts you should apply for plus how to apply and get approved fast. Let’s dive in.
What is a Dating App Merchant Account?
A dating app merchant account lets merchants accept credit card payments and other forms of electronic payments like eChecks, ACH and Bitcoin.
The bank that hosts the merchant account is known as the acquiring bank. The customer’s bank that issued the credit card used for the transaction is the issuing bank. Dating apps and websites require merchant accounts and high-risk payment gateways to facilitate their business operations and accept credit card payments for their services.
Does a Dating App Always Need a Merchant Account?
Since an online dating app or website is a full-fledged business processing multiple card transactions daily, it requires a dedicated merchant account to accept different forms of payment.
However, a dating app business owner shouldn’t carelessly apply for any type of merchant account. Considering the online dating industry is high-risk, a dating app should be integrated with a special kind of merchant account also known as a high-risk merchant account that has multiple transaction routing capabilities.
High-Risk Merchant Account
A high-risk merchant account is any merchant account that has a high rate of chargebacks. Dating app software, integrated with payment services, is considered a high-risk merchant account.
Due to the nature of the business itself, minor issues can cause customers to file chargeback claims. Merchants who are able to get ahead of these claims without the issuing bank being notified are the only ones that succeed in this business model.
High-risk payment processors that are familiar with the recurring billing nature of these businesses have tools in place to help mitigate and manage chargebacks. Transaction scoring, address verification, tokenization, and various fraud management tools will help prevent high-risk merchant accounts from getting terminated.
Aggregated vs Dedicated Merchant Account
As the owner of an online dating site, you should consider getting a dedicated dating app merchant account with a direct MID instead of an aggregated one.
While it is easier and faster to open an aggregated dating app merchant account, you are not in control of the funds collected from your customers. The service provider collects payments and then deposits them in your merchant account. Additionally, aggregated merchant accounts for high-risk businesses get terminated all the time as they are not underwritten properly.
When applying for a dedicated dating app merchant account, your business is thoroughly reviewed by underwriters familiar with the business type. Approvals might take longer, but they will stick.
Additionally, funds collected from customers are deposited directly into your dedicated merchant account by the payment processor. You have total control over them.
How to Apply for a Dating App Merchant Account
As long as you have the required documents and a fully functional application or website, applying for a dedicated dating app merchant account is easy. Simply submit a merchant account application form and include all the necessary documents.
Make sure the attached documents are clear and complete. This will speed up the approval process.
If you’re looking for a dedicated merchant account, underwriters may be asked to go through your website or app to ensure there’s no large-scale fraud going on. You’ll have to provide them with sample login details so that they can look at the back-end.
Once you’ve applied, sit back and wait for a response.
What are the Required Documents for a Dating App Merchant Processing Account?
These are some of the commonly required documents for opening a dating app merchant services account.
- A valid government-issued ID.
- Business owner proof of identification.
- Business details including stakeholder information and business structure.
- Necessary documents of incorporation.
- Bank processing statements from the previous 3 to 6 months. If the business hasn’t received any payments yet, a business banking letter, voided check, or owner’s personal banking statements are required.
- Chargebacks and refunds percentage.
- Access to your website (if applying for a dedicated merchant account.) Make sure your website meets website compliance requirements.
How Long Does It Take to Get Approved for a Dating App Merchant Account?
Submitting all appropriate details speeds up the approval process but there are no auto approvals. Domestic accounts (based in the US), usually receive approvals within 3 to 7days. If you’re looking to open an offshore (international) merchant account, it can take anywhere from 5 days to three weeks to get approved.
How to Find a Top-Notch Dating App Merchant Account Payment Processor?
Not all merchant account processors are born equal. Some are better than others. Here are some factors to consider when looking for a dating app merchant processing solution.
Risk and Fraud Mitigation Systems
Choose a dating app merchant processor that uses different processes to check for fraud. The payment gateway must be secured with PCI level 1 compliance. It should also have a robust API with all the integrations needed to successfully run a recurring billing business model.
The processor you choose should also have tools in place to help properly manage chargebacks and disputes. There should also have a higher tolerance for chargeback ratios. Carefully read through the terms and conditions.
Long Track Record
When looking for payment processing solutions for dating app merchant accounts, select providers that have been working in the payment space for a good number of years.
A service provider that has been handling high-risk merchant accounts for a long time is more likely to be able to handle your business model. Pay attention to customer reviews.
Long Range of Services Provided
The ideal payment processor offers a wide range of services, not limited to domestic accounts.
The processor you choose should have secure and smooth approvals for merchant accounts, integrate seamlessly with your website to process payments, and process both domestic and international payments in different currencies.
Look through the transaction fees of the payment processor. Make sure there are no hidden fees before you partner with them. There are few things more annoying than paying more than you estimated for an online dating service merchant account.
SecureGlobalPay has been in the business of providing high-quality merchant accounts for decades. We serve businesses in every industry, including the online dating field.
We offer high-risk, dedicated dating app merchant accounts to businesses around the world and we look forward to hearing from you with any questions you may have.