|July 10th, 2017|
Internet is hub for shopping and various services for this generation. So much so that people find it really simple to initiate their dating from online encounters. The nature of this industry has been through a lot of scrutiny and problem for adaption but as the youth has been supportive of this idea, the websites find it amazing to dwell in it.
Online dating websites like Tinder, eHarmony, Match, Elite single and more have had their own history of challenges; although some of them being similar like general acceptance by its users and preventing the misuse of the portal from other disdainful activities. However, the time has unfolded into a new venture for these businessmen and made their ideas pretty much successful. People with social anxiety and special requisites can now make their ways to the one without going through other painful stories just as in traditional dating.
Though, this doesn’t make everything smooth for businessmen as their company thrives on one way to make revenue – online payment. The paid accounts and periodic payments are the only way these companies get the share of their input. But the major issue of owning an online dating platform is that service providers don’t take ‘high-risk’ industries in their service plans.
Why is online dating website ‘high-risk’?
15% of USA population is dependent on online dating and it generates gross revenue in billions. Clearly, as we know, there is a lot of potential in this field. Still, the online gateway providers tag them as high-risk industry due to two major reasons:
1. High Chargeback rate
Dating is completely based on personal satisfaction of person. If they find the match of their choice from the bank of your user accounts, then they will pay the money else they would charge it back. Due to the dynamics of this field, the merchants don’t push their extremes in these accounts. Hence, refrain from being vulnerable by not providing merchant accounts to dating sites.
2. Discrepancy in stated service and provided service
There is a fine line in two situations. As per the previous record, some of the dating sites that started as finding the right match or companion changed into finding an escort or run as prostitution site. This terrible nature of this industry made it susceptible for ignorance by the major pool of genuine people looking for dating and companionship.
Due to these two reasons, merchant account providers avoid getting involved in this industry and some of them who do, charge a high fee for these accounts.
What should you expect from merchant account providers if you have a dating website?
The truth is undeniable that the nature of online dating site will remain ‘high-risk’ even if it is generating huge revenue due to its uncertain chargeback. Therefore, there are a few set of expectation to put up which shouldn’t be compromised:
1. Lower Charge Fee
Online gateway providers realize the helplessness of online dating websites and to utilize benefit of this situation, they charge more than industry standard price for their services which is why businessmen are not able to generate profits in initial days and also have trouble building up their business. So, you are good to go if your service provider is asking you less than 3% as charge fee.
2. More Than Just Online Gateway
Merchant accounts have security and anti-fraud payment techniques for other low risk accounts which must also be provided to dating websites to cut down major amount of chargeback due to false or fraud payments.
3. Easy Application Processing
It is good to be detailed when you are dealing in money matter to avoid future chances of falling in trap. However, some of the service providers don’t realize the amount of time and money they wasted of the company while making them wait for the completion of the process. So, if you are looking for merchant accounts then make sure you are not involved in long process of application and approval rather it should be short, crisp and precised.