The internet is now a sea of opportunities that have opened up many doors for various business ideas. One of those internet emerged business idea was online dating sites. The entrepreneurs only had to understand the wants of people and then solve it. We are the best online dating merchant account Provider in USA
The reason behind the booming success for online dating sites is that almost ninety million singles between the age of nineteen and forty-five are looking for a perfect partner. And the success of online dating site can be proved with the statistic results of the collected revenue of approximately six thousand million dollars in 2017.
Adult merchant accounts (which include dating sites) has been categorized and announced as a high-risk industry by Visa and Mastercard in 2002. But online dating site merchants might know that dating sites are considered to be high-risk but not the exact reasons behind it. Therefore to solve this confusion, we are providing a list of reasons why dating sites are considered to be challenging and high-risk merchant accounts.
There are various reasons why dating sites have to face a much higher rate of chargebacks. This majorly occurs because clients who unsubscribe to the dating site service and request for a refund. The clients can also ask for a refund on cases when they couldn’t find a perfect match using the dating site’s services as the merchant account claimed to provide.
The need for advertising and promotional services:
The dating sites cannot precisely be termed as a necessity. Instead, it is more like a luxury, even in first world countries let alone third-world countries. The adult industry nature of dating sites makes it hard to have a great start with finding clients. Therefore, the dating site merchant accounts might first need to seek proper advertisement through popular online mediums like Facebook, Instagram, etc.
An industry achieving success and high revenues will attract more new merchants. There are almost five-thousand dating sites worldwide and with more sites popping up every passing year. This makes competition harder and decreases the uniqueness about an individual dating site merchant account.
Some many people and industries will try to use dating site services to serve their greedy intent. For example, prostitution and escort services which are generally illegal might try to use the website as a front for gaining their opportunities.
Lower customer loyalty:
Customer loyalty is low in dating sites because either they find their match and discontinue the service, or eventually lose interest. Therefore, there is a high chance of turnover due to minimal customer loyalty.
Fraud and misrepresentation:
Scams have increased on online dating sites, and it only keeps rising. Incidents of people not providing their real information and catfishing others are now a common fear for probable clients. A report from Huffington states that almost forty per cent of the crowds at a dating site are married and therefore cheating on their partners.
All these are more the reason why online dating site merchant accounts should seek the help of an excellent merchant account service and high-risk payment processor.