- July 21, 2020
- Posted by: iPay Editor
- Categories: B2B Payment Processing, best high risk merchant account provider, best high risk merchant services, Business plans, Chargebacks, Dedicated Merchant Accounts, high risk merchant account application process, high risk merchant account instant approval uk, high risk merchant account provider, high risk merchant account solutions, High Risk Merchant Accounts, high risk merchants uk, high risk moto merchant account, Online Dating Merchant Accounts, online merchant account instant approval, online payments
In the US and Europe Dating merchants seen a sudden increase in interest from online customers past spring. That’s because the pandemic Covid-19 hit the world. Since people are staying home due to social distancing they are finding entertainment from adult dating websites and others want to find true love.
There is a considerable high number of sign-ups. With sign-ups and new payments comes the higher potential of a chargeback, refund and scams. This is not a good sign for your merchant account.
Dating Merchant account challenges:
When the coronavirus pandemic hit due to the lockdown and social distancing dating merchants have seen the positivity in business. Dating merchants have given hopes to singles to find intimacy within 4 walls of the house during the lockdown. There was a sudden spike in activity in the month of March on dating websites, apps, etc.
Even if these services are offered just online there are certain problems that come along with.
With great demand, all of a sudden new technology is introduced. In the past dating apps, customers end up meeting up for a date. However, now due to social distancing, there is a demand for video calling technology. Video call has helped in online dating services due to face-to-face interaction virtually. So video calling has become a huge hit!
That’s not the real challenge, the real challenge is increasing in chargeback and refund. Customers who do not have enough money to pay are asking refund or chargeback. However, the chargeback request may not be justified.
Here are few tips for dating merchants to gain success:
How To Combat Fraud and Chargeback Risk
Due to the competition in this industry merchants need to work on engaging consumption methods which can justify the fee that’s been charged.
Adult merchants need to impose strict data privacy practices and policies to protect online customers. If there is a data breach of sensitive material results in reputational damage and fines.
Geo-targeting is a good target because people cant travel long distances due to the lockdown. This feature will really be worth it because nobody has a clue when this pandemic is going to end.
For dating coach, it is a good idea to get signed authorizations so that you have proof if a customer utilizes your services and disappear suddenly.
How Can Dating Merchants Protect Payment Processing
The high-risk dating industry gets more dangerous when customers are willing to take services without paying for them. There are a few strategies you can follow:
- ID Proof And Age Verification
Dating services are strictly offered to 18 plus. If you impose strict verification at Point-of-Sale you will have a copy of ID proof which will come handy to fight a chargeback.
- Technology Usage To Protect Subscription Payments
Since there is a lot of subscription products in the dating world you need extra protection for it. It is good to install push notification which will alert the customer.
- Diversification of Payment Processing
It is always good to have alternative options when it comes to the merchant account. Opening a subsidiary office in a different country will allow you to open another merchant account. Offshore merchant accounts will have relaxed qualification requirements for a merchant.
When it comes to fighting chargeback all you need is documentation. Make sure your terms and conditions are clear and transparent. Even cancellation policy should be simple.
Have an easy to reach customer support or chat support or quick response to email support so that when the customer needs a refund they know how to reach you and get things rectified.
Have all copies of the invoice and signed agreements ready to fight the chargeback. Also, make sure the customer ticks the agree terms and conditions checkbox at the time of purchase.
- Anti-fraud filter
It is important to install 3D secure technology to route payments. The customer needs to use a PIN number or fingerprint to process payment. This helps in fraud-free payment processing.