Adult Payment Processing Services

Merchants have realized that many of the payment processors, such as Stripe or PayPal will not work higher risk industries, like adult.  These limitations of adult payment processing choices have created a demand for alternative high-risk payment acceptance methods.  One of the most reliable options to debit or credit card acceptance has been the use of checks for payments.

The use of check processing is becoming increasingly common among adult businesses.  Checks provide stable payment services with lower fees and fewer restrictions than a high risk merchant account can usually offer.  For this reason, many rebilling adult businesses have made the switch to using check processing as a low-cost method of accepting payment.

Viewed as a non-conventional payment method verse using credit or debit cards,  many customers have accepted the use of checks as another secure payment method.  Knowing that funds will be drawn from a bank account, customers won’t have huge bills or additional credit card payments.

As a proven payment processing service for the last 10 years, we have made it our goal to provide the best solutions to adult businesses.  Regardless of the type of payment processing that is required, our team can find reliable solutions to help build your business.

Types of Payment Processing

Adult ACH
Adult eCheck
Adult Check 21
Adult Check 22
Adul Credit Card Processing

ACH Processing Service for Adult Businesses

ACH processing, also known as the Automated Clearing House, is an electronic banking network used in the United States for sending financial transactions.  Every year the ACH Network handles billions of transactions worth trillions of dollars comprised of direct deposit and direct payments used for most interbank transactions.  These transactions include such payment services as electronic bill payments and payroll transactions.

The Automated Clearing House network is managed by over 10,000 different financial institutions making up NACHA.  NACHA (National Automated Clearing Housing Association) is a self-funded, self-regulated not-for-profit organization.  Though the Federal Government does not oversee these transactions, Federal Reserve member banks account for about 60% all ACH transactions. Guidelines for these transactions are strict and closely monitored, resulting in fines or fees assessed by NACHA or the Federal Reserve.

An ACH transaction involves a number of different organizations to complete the process. These organizations include:

• ODFI – Originating Depository Financial institution
• RDFI – Receiving Depository Financial Institution
• ACH Operator

The ODFI receives an ACH request from an individual or company, known as the Originator, to send or receive money from another bank account, known as the Receiver. These requests are cued up until the predetermined time of the day when the batch of requests will be sent to the ACH Operator.

The ACH Operator operates through either the Federal Reserve or NACHA, accepting requests and determining how to process each transaction. Once the determination on the action requested by the Originator, the transaction details are released to the RDFI.  These transactions can be credited or debited to the Receivers bank account depending on the type of transaction.

Credits will generally take between 1 to 2 business days to complete while debits will be completed in 1 business day.  ACH is not the best solution for merchants operating higher risk businesses high rates of Returns or NSF transactions.  Many of these higher risk merchants have decided to use other payment processing services like Check 21 or Check 22.

Check 21 Processing Services for Adult Businesses

Check 21 Processing is an alternative payment solution that was placed into effect through the Check Clearing for the 21st Century Act.  Viewed as an alternative solution for our vulnerable ACH system, the act was passed in 2004. Check 21 was designed as a way to reduce the dependence financial institutions have for physical checks by allowing for substitute checks to be created and electronically processed.

Changes to the financial system after September 11th allowed banks to process payments using electronic images of checks, called substitute checks, instead of physical checks.. Using remote deposit capture software, original copies of checks could be scanned and converted to a 2 sided image to be used for clearing. Once the checks are successfully scanned, the files are sent to the Federal Reserve either directly or through the depository financial institution.

Check 21 is held to a different standard than ACH or eCheck transactions due to the process of which transactions are handled.  Unlike ACH or eCheck, Check 21 allows banks and credit unions to accept checks directly with a physical check with NACHA or The Fed.

Check 22 Processing Services for Adult Businesses

Similar to the Check 21 solution, Check 22 allows for the customers to initiate, create and process their own digital checks for purchases. Check 22 transactions allow customers to input the amount of the transaction and add an electronic signature to the check.

Many merchants have migrated to the Check 22 process because high-risk industries that are prone to chargebacks are positioned better to contest these problems. Customers that authorize a Check 22 transaction are required to work directly with the merchant to resolve any problems.  Violation of these terms can result in significant collections fee and other banking costs charged to the customer.

Unlike NACHA or the Federal Reserve that requires merchants to abide by strict guidelines, Check 22 provides a good alternative.  ACH and eCheck have strict thresholds for Returns and NSF transactions, Check 22 provides a much higher tolerance for bad transactions.  This offers merchants ideal terms for operating and growing their businesses without significant risks.

eCheck Processing Services for Adult Businesses

Another common payment method used in the adult industry is the Electronic Check, otherwise known as an eCheck.  Electronic checks operate in a very similar manner to that of an ACH payment when processed through the banking network.

Checking account information is entered by the consumer or by the merchant into their payment gateway to create the electronic check. Once the check has been created, account information is sent to the Federal Reserve and processed in a similar manner as an ACH transaction.

Settlements will generally occur within 2-3 days of the transaction being initiated by either the merchant or the customer.  Though checks are not the most common payment method, the fees are generally lower and have enticed many merchants to offer this alternative to cut costs.

Merchants with higher levels of returns, generally higher risk merchants, do not find eCheck processing as good of a solution due to the strict NACHA and Federal Reserve guidelines.  Many of these merchants have opted to use Check 21 or Check 22 services to lower their liabilities.

Differences between Check 21, Check 22, eCheck and ACH

ACH, eCheck, Check 21 and Check 22 all provide reliable and affordable payment options for merchants in the adult industry.  Many businesses have added check processing as a primary or complimentary payment processing method in lieu of credit cards.

Some of the main differences between Check 21 and Check 22 with eCheck and ACH Services include:

Check 21/Check 22

• Same or Next Day Clearing
• Disputes Require Written Claim
• 40 Day Dispute Window
• No NACHA or Federal Reserve Rules
• The customer creates check with eSignature (Check 22)


• 3-5 Business Days for Clearing
• Disputes filed over the Phone
• 60 Day Dispute Window
• Follows NACHA and Federal Reserve Rules

Types of Check Processing Services for Merchants

There are many different types of adult merchants using the high-risk check processor services of Adult Merchant Services. These services are generally used for membership or recurring billing purposes but many options are available.  Some of the most common check processing services available include:

• Adult Membership Website Check Processing Services
• Adult Dating Website Check Processing Services
• Adult Toy Store Check Processing Services
• Adult Video Check Processing Services
• Check Processing Services for Bath Houses
• Escort Check Processing Services
• Check Processing Services for Escort Directories
• Massage Parlor Check Processing Services
• Massage Therapist Check Processing Services
• Check Processing Services for Penis Enlargement Products
• Phone Sex Check Processing Services
• Check Processing Services for Sexual Enhancement Products
• Check Processing Services for Strip Clubs
• Check Processing Services for Swingers Clubs

Most adult businesses accepting checks are operating online with a membership program that bills customers on a monthly basis.  Alternatively, merchants offering one-off services or products are also able to accept payments either online or in person.

Businesses that decide to accept checks can do so online or through their storefront.  Integrating a payment gateway into their shopping cart will allow businesses to accept checks online.  Retail merchants can use a remote check imaging scanner to capture the customer check information and begin the transaction.

Payment Processing Frequently Asked Questions

For more information on check processing services, check out answers to some frequently asked questions from the governing bodies.

• Federal Reserve Check 21

Get Started Processing Payments Today

In summary, the payment processing professionals at Adult Merchant Services are available to ask any questions about check processing. Our experience and large payment processing network has helped us grow to become a leading adult check processor in the adult industry.

If a business is trying to determine if checks might be a good payment alternative, we can help. With many options and financial services companies in the business, we can offer a number of different solutions to fit your companies needs.

Our staff will be more than happy to answer any questions about adding check processing to your companies payment processing services.

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