Adult vertical companies cannot survive without proper banking services. These businesses face enough challenges without the added burden of being shut out by traditional financial institutions. Having a bank account is absolutely critical for their day-to-day operations. Without one, how can they pay employees, handle supplier payments, or collect money from customers?
A bank account doesn’t just help manage money; it’s also about legitimacy. It shows customers, investors, and regulators that the business is real and above-board. Without it, companies risk being shunned by potential partners and customers.
Moreover, businesses cannot grow without access to credit and financing. Banks won’t offer loans or credit lines to companies without a solid banking relationship. And operating in cash is not only risky but also downright dangerous, exposing businesses to theft, fraud, and other vulnerabilities.
Types of Bank Accounts Adult Companies Absolutely Must Have
Adult vertical companies must have specific types of bank accounts to function properly, and the lack of access to these accounts is often a matter of business survival:
- Business Checking Accounts: This is the lifeblood of any business. It’s essential for managing daily operations like paying bills and collecting revenue. No business can operate without this account.
- Merchant Accounts: Without a merchant account, adult businesses cannot process credit card payments—especially online transactions, which are a significant revenue stream. High-risk merchant accounts are often required due to the ridiculous level of chargebacks these companies face.
- High-Risk Accounts: Adult companies are frequently categorized as high-risk by banks, forcing them to accept accounts with higher fees and restrictive terms. Yet, these accounts are necessary for survival.
- Savings Accounts: Every business needs a cushion for future growth or emergencies. Adult companies are no exception, but the stigma makes it harder for them to access even basic savings services.
These accounts are non-negotiable for running any successful business. The barriers adult companies face in securing them are outrageous.
The Harsh Reality: Why Banks Refuse to Open Accounts
Banks are incredibly hesitant to open accounts for adult vertical companies, and the reasons are both frustrating and unfair.
- Reputation Risks: Banks are terrified of being associated with the adult industry, despite the fact that these companies are fully legal. They fear backlash from other clients or a tarnished image, forcing adult companies to operate in financial limbo.
- Regulatory Scrutiny: The adult industry is subject to intense regulatory oversight. Banks are hyper-cautious due to concerns over anti-money laundering (AML) and know-your-customer (KYC) compliance. This overblown fear often leads to banks closing their doors on perfectly legitimate businesses.
- Chargeback Risks: The adult industry tends to have a higher rate of chargebacks, making banks view them as too much trouble. The result? Adult companies are left without the basic banking services they desperately need.
These obstacles are infuriating for adult vertical companies, as they are often left scrambling for solutions, even when they are running legitimate, compliant businesses.
The Unfairly Stigmatized Adult Business Types
Many different types of businesses fall under the “adult” category, and each faces its own set of challenges:
- Adult Entertainment: This includes adult films, webcam sites, and strip clubs. These companies are routinely blacklisted by banks simply due to the nature of their industry, despite their legality.
- Sexual Wellness Products: Companies selling sex toys and other intimacy products are wrongly lumped in with high-risk industries. Despite the mainstream demand for these products, they face ridiculous hurdles in securing banking services.
- Dating Services: Premium dating platforms, especially those catering to niche audiences, are wrongfully considered high-risk, making it tough for them to access the financial services they need to grow.
- Escort Services: Even legal escort services are shut out from banking options due to banks’ fear of reputational damage. It’s an unjust reality that forces these businesses into difficult financial situations.
All of these businesses are completely legal, yet they are subjected to unnecessary hurdles simply because of the industries they serve. It’s a grossly unfair situation that holds them back from success.
Also there are some verticals which are only described as an adult content companies, but in fact have no 18+ content. As an example we can mention one of our clients: igofeet.com project, which was struggling with opening the bank account and after it was hard for them to open the merchant account as well.
How The Old Bank Steps Up to Help
The Old Bank knows exactly how to handle these challenges. We don’t shy away from adult vertical companies. We welcome them. We understand that these businesses are unfairly targeted, and we offer specialized banking solutions to meet their specific needs.
Whether you need a basic business checking account, a high-risk merchant account, or other essential financial services, The Old Bank is here for you. We know how important it is for your business to have a reliable banking partner, and we’re committed to supporting your growth and success.
Don’t settle for being shut out by other banks. Partner with The Old Bank and get the financial tools you need to thrive in the face of unfair challenges.
