Let’s Talk Money, Honey: Why “High-Risk” is Your Secret Weapon
Hey y’all! Let’s have a real heart-to-heart about two words that scare a lot of new business owners in our space: “High-Risk.”
When you hear that, you might think it means you are a risk, or your business is shady. I’m here to tell you to throw that thought right out the window. 🙅♀️
In the world of banks and credit card processing, “high-risk” is just a label. It’s not a judgment; it’s a category. And strangely enough, embracing that label is actually the first step to protecting your hard-earned money.
Why We Are “High-Risk” (And Why It’s Okay!)
Mainstream processors get nervous about our industry for a few specific reasons. It’s not personal—it’s just business for them.
- Reputational Risk: Big, “vanilla” banks worry that being associated with adult or sexual wellness products could tarnish their public image. They’d rather turn away an entire industry than deal with a single PR headache.
- Chargebacks: In our industry, customers sometimes dispute charges because of “buyer’s remorse” or simply because they don’t want a partner to see “Spicy Delights Co.” on the bank statement.
- Shifting Rules: Card brands like Visa and Mastercard change their rules often, putting pressure on processors to be strict. A business that is “fine” today could be labeled “unacceptable” tomorrow.
The Danger Zone: Why You Should Avoid PayPal & Shopify Payments
I know it’s tempting. PayPal, Stripe, Square, and Shopify Payments make it look so simple. But for a business like ours, it’s a trap. 🚨
Their business model is “approve instantly, ask questions later.” When they finally do ask questions (usually after you’ve had a successful launch), it can mean disaster. Their policies explicitly prohibit “sexually oriented materials,” which is broad enough to shut you down for selling a massager or even a book.
The Reality Check
- They can shut you down without warning.
- They can freeze your money for up to 180 days while they “investigate.”
- Your business comes to a screeching halt—you can’t pay suppliers or yourself.
Finding Your Partner: The High-Risk Specialist
We are going to bypass the danger zone completely and go straight to a partner who wants our business. For this module, we recommend CWA Merchant Services. They specialize in sexual health and wellness.
| Feature | CWA Merchant Services | PayPal / Stripe / Shopify |
|---|---|---|
| Industry Acceptance | ✅ Yes, specializes in our industry. | ❌ No, explicitly prohibited. |
| Risk of Closure | Very Low (if compliant). | Very High (sudden freezes). |
| Fund Stability | Stable & Secure. | Unstable (180-day holds). |
| Approval Process | Upfront Underwriting (reviewed before you start). | Instant Approval (reviewed after you sell). |
Your CEO Toolkit: Get Ready to Apply
Applying for a real merchant account isn’t scary—it’s just thorough. To get approved, you need to be an open book. Do not hide what you sell. Use clear, professional language.
Here is the checklist of documents you need to gather for your application:
- Government-Issued ID: Driver’s License or Passport.
- Proof of Business: LLC registration or sole proprietorship filing.
- EIN Confirmation Letter: The document you got from the IRS.
- Voided Check or Bank Letter: From your business bank account.
- Your Website URL: So they can see your professional online presence.
You did it! You understand the risks, you know who to avoid, and now you’re ready to partner with a processor who will have your back for the long haul. Let’s get you paid! 💸
Note: The information provided in this post is for educational purposes. Always consult with a financial professional regarding your specific business needs.
