5 Key Takeaways from This Article
In case your online business falls under such a category that it sells adult-oriented products and services or adult entertainment in Europe, it becomes mandatory for you to find the best way of offering varied payment options to your European customers. You will require an Adult Payment Gateway amongst other things when you set up a high-risk merchant account.
The payment gateway is the software layer facing customers that is provided by a payment service provider and permits ‘the merchant to verify credit and debit cards, or other types of online payment methods, in a safe and secure way’. This is the part of an e-store where a customer has to select a type of payment-a credit or debit card, some sort of e-wallet, or another type-and enter the details of the payment.
An adult payment gateway could be classified as high risk because of the legal age restrictions and the inherent financial and reputational risk that the industry may present to merchant acquiring banks and payment service providers. Furthermore, an overwhelming majority will decline such a business as a client due to pre-set organizational policies, despite the big volume of transactions.
Your business is adult-related if you sell the following products and services:
| Adult film distribution and online streaming |
| Online dating |
| Pole/lap dancing clubs |
| Webcams and live accounts |
| Adult toys |
| Escort services |
| Adult saunas |
| Sensual messaging |
There is no general European legal requirement to use a separate product called an “adult payment gateway”. The payment solution must support the merchant’s lawful business activities and comply with applicable payment, security and card-scheme requirements. Depending on the payment methods offered, its functions may include:
| Collection of customer’s payment information |
| Encryption of the customer’s payment information |
| Determining the Card Association that has issued the bank card |
| Forwards the transaction data to validate the payment |
| Forwards the transaction data to the Payment switch |
| Payment transaction is declined or approved |
| Safeguard business from fraudulent transactions and Chargebacks |
| Stores the payment data securely for future purchases |
Generally, how does a payment authorization process work?
- e.g., A customer chooses a payment method and enters their payment details at the payment gateway of an online store. The payment gateway securely transmits payment information and may perform validation and fraud checks. For a card payment, the card issuer normally checks the available funds or credit and decides whether to authorise the transaction. The payment gateway encrypts the customer’s data and transmits it to the payment processor of the merchant acquiring bank.
- The acquiring bank or its processor routes the authorisation request through the card network to the card issuer. The issuer normally approves or declines the transaction, although the network may act on the issuer’s behalf under agreed arrangements. The response returns to the merchant through the payment chain. Authorisation is separate from clearing and settlement and does not itself transfer funds to the merchant’s bank account.
Eregon’s Adult Payment Gateway Providers in Europe
In the EU/EEA, regulatory requirements depend on the services actually provided. Regulated payment services require the appropriate authorisation, registration or applicable exemption. A provider supplying only technical gateway services may fall outside payment-services licensing requirements if it meets the relevant exclusion conditions. A provider’s regulatory status does not guarantee acceptance of an adult business or compliance of that business with applicable law. If you are unsure about European legislation, please seek individual counsel with our lawyers here at Regulated United Europe for personalized advice.
Some adult payment gateways available in Europe are as follows:
- Verotel – HQ in the Netherlands – High-risk payment gateways since 1998 at competitive prices
- PaymentCloud – HQ in the US – Offering cutting edge, PCI-compliant payment software
- Axess Merchant Services (HQ in the UK, providing the highest level of compliance gateways and other related payment services)
- Instabill (HQ in the US, providing global clients with high-risk payment gateway software that offers multicurrency support)
- ccNetPay (HQ in the UK, offering payment services to a wide range of adult businesses across Europe)
Requirements for Adult Businesses
If you want to be considered by a payment service provider, you should generally have a fully registered legal business, open a high-risk merchant account, and prepare a set of documents in advance.
Otherwise, if one cannot or does not wish to set up a high-risk merchant account, one can opt for a sub-merchant payment aggregator instead. It is also called the third-party payment processor. The role of such is to let businesses take various orders by credit and debit cards along with other digital means without setting up a merchant account.
Documents required for an adult payment gateway:
| Required Documents |
|---|
| Incorporation documents or other business documents |
| Proof of the address of the business address at which your business operations are carried out |
| A business plan that includes a description of your products or services and the intentional use of the payment gateway |
| Proof of identity for every individual with managerial control of the business |
| Tax form provided by the tax authorities of the country where your business was registered |
| Suppliers agreement in case you resell tangible adult products |
| Details about the corporate bank account, including bank statements for the last couple of months |
| Profit and Loss statement of the company, where available |
| Financial Statements from the past 3-6 months |
| Past Processing History – if any |
| Proof of Identification of Shareholders and Directors of the firm |
| Proof of the residential address of Shareholders and Directors of the firm |
Besides the demanded documents, you have to make sure that your website is compliant and prepared in order to accept secure payments. For instance, the terms and sections of privacy policy are supposed to be drafted and published on your adult business website accordingly.
How to Choose an Adult Payment Gateway
This type of payment gateways is often accompanied by many risks, hence commanding high charges in fees. In return, though, they can offer higher security that will save your business from fraudulent activities and a high volume of chargebacks. With the variety of options available, ensure that your business reaps all the benefits you are paying for by taking the time to do your research on the best adult payment gateway providers by looking at the most critical aspects.
Things to consider before choosing an adult payment gateway provider:
How to Obtain an Adult Payment Gateway in Europe
First, get an adult payment gateway through opening a high-risk merchant account. It will be, of course, difficult to easily get it; we shall be glad to share experience and provide necessary support.
If you already have an established business relationship with an adult merchant account service provider, they may facilitate a wide array of payment methods by offering you an adult payment gateway along with additional services. Otherwise, you might consider seeking a high-risk gateway provider independently.
The process for getting an adult payment gateway is rather as follows:
Define your business needs and determine your customers’ payment preferences
Understand what regulatory environment your selected adult payment gateway providers must operate in and also how they keep their clients compliant
Look up and compare fully licensed high-risk gateway providers who ideally have experience in serving adult businesses
Send your company information and a service request to the sales teams of the providers to determine their pricing and exact requirements
When your application is approved, you’ll receive a test payment gateway ID which will have to be integrated into your business website
The payment gateway goes live after the test and the full integration into your website
To submit an initial application, you will be asked to provide only such basic information as the name of the owner, company name, business email, telephone number and website address, specify regions and countries of operation as well as describe your products or services. Processing history may also be required.
If you’re ready to grow your adult business in Europe by offering more customer-friendly payment methods, our team here at Regulated United Europe will be delighted to assist you. We have eight years of experience in helping clients to obtain adult payment gateways for European markets. We tap into our vast network of trusted partners in the European financial services industry to offer the most suitable and cost-effective solutions that improve the functioning of the companies we serve.
Why Regulated United Europe?
Regulated United Europe OÜ (RUE) is a European legal consulting firm specializing in financial licensing, company formation, and regulatory compliance. Since 2016, we have helped hundreds of businesses obtain crypto, gambling, forex, and EMI/PSP licenses across 35+ jurisdictions.
With offices in four EU countries and a team of experienced lawyers, we provide end-to-end support — from initial consultation and company registration to license acquisition and ongoing compliance management.
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