Adult Payment Gateway TickleCharge Takes on High-Risk Merchants

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Recognizing the void in payment platforms dedicated to the global sexual wellness industry, TickleLife CEO Shakun Sethi decided to make a bold business move.

Last November her pleasure tech stack launched TickleCharge, an adult payment gateway unafraid of embracing so-called high-risk merchants. While it mainly serves North America, it can receive and hold more than 20 currencies.

Unlike traditional gateways, which have been criticized for rejecting or de-platforming sex workers and sexual well-being businesses, TickleCharge services are tailored for sex tech entrepreneurs and the adult industry.

In an exclusive interview, Sethi spoke to SexForEveryBody.com about the new adult payment gateway. She also shared insights into the challenges faced by sexual wellness and sextech businesses, including their classification as high-risk merchants.

What are high-risk payments in the fintech industry?

Contrary to popular belief, high-risk payments aren’t limited to taboo industries like firearms or adult entertainment. Even legitimate businesses that sell age-restricted items or experience high chargeback rates can fall into this category.

In fact, a recent report by Chargebacks911 found that chargebacks cost merchants nearly $31 billion in 2020, with some industries experiencing chargeback rates as high as 2.94%. These chargebacks not only result in lost revenue, but also damage a merchant’s reputation and can lead to account closures or even legal consequences.

This is where TickleCharge comes in. Our innovative payment processing solutions are designed for all kinds of high-risk merchants, providing them with the tools they need to minimize chargebacks and protect their businesses. Through our advanced fraud prevention and chargeback management systems, we can help our clients reduce their chargeback rates between 50- 80%.

At TickleCharge, we believe that every business deserves fair and reliable payment processing solutions, regardless of their industry or risk level. By empowering high-risk merchants with the tools they need to succeed, we’re not only helping individual businesses thrive, but also contributing to the growth and innovation of the fintech industry as a whole.

How do you plan to eliminate high-risk payments in the sexual well-being space?

At Ticklecharge, we do not plan to eliminate high-risk payments in the sexual well-being space. Instead, we focus on evaluating which businesses actually qualify as “high risk” and help them identify the correct processes to get merchant accounts for their businesses and negotiate sharp deals on their behalf from payment processors and banks.

By getting them a merchant account for their high-risk vertical, TickleCharge keeps their costs low (no more risks of getting deplatformed or banned by payment processors!).

But our services don’t stop at getting a merchant account—we work with our customers and support them to make sense of regulations, business compliance etc. so that they can concentrate on doing what they do best: making money.

What would happen if high-risk payments disappeared overnight for the sextech industry?

The legal sex industry, encompassing businesses offering adult entertainment products and services like pornography, sex toys, and related content, has been experiencing tremendous growth, generating over $212 billion annually.

The sudden disappearance of high-risk payments in the sextech industry would have a significant impact, as legitimate businesses would be left with limited payment options due to the taboo nature of the industry. Traditional fintech entities are often unwilling to support such businesses, leading them towards payment providers who charge exorbitant transaction fees or offer unsuitable solutions that hinder their growth and prosperity.

Who is the TickleCharge adult payment gateway for?

TickleCharge is a platform specifically designed to cater to businesses in the sexual wellness industry. This includes companies that offer adult entertainment products and services such as pornography, sex toys, and related content.

While our primary focus is on the sexual wellness industry, we have also extended our services to closely related high-risk industries such as cannabis and online gaming (sports betting, fantasy sports, online gambling etc.). It is important to note that our platform is only available to legal entities that operate within high-risk industries, including adult performers and porn sites.

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On the downside of using quick sign-up sites like PayPal or Stripe

I can tell you that any platform, including PayPal / Stripe which relies on a large number of customers, would naturally follow a quick approach when it comes to the sign-up process. This means that when you initially open a PayPal or Stripe account, you (or your business) are not verified. This way one can start their transactions right away but when the underwriting process takes place (which can sometimes take years) business accounts get flagged and shut down.

This is a major business issue for high-risk industries like sextech, because traditional fintech entities are not aligned for their needs. While they may accept initial transactions, once they realize that you are a “high-risk” business they will eventually flag and close accounts, leaving businesses without access to funds.

I have worked hard to ensure that TickleCharge does all due-diligence upfront, making sure that when we onboard a high-risk merchant client they get a secure and reliable payment gateway specifically designed for their needs, whether they are from sextech or any other ‘taboo’ verticals.

On the TickleCharge verification process

I completely understand the struggles that people face when signing up for adult platforms due to the complicated verification process. But in the last 3 years, I have been in the thick of the financial ecosystem. I now know how a robust payment partner can make a business grow 10x.

That’s why at TickleCharge we believe in having a thorough verification process, but we also understand the need for accessibility and simplicity. That is why we work with a network of lawyers and advisors who work tirelessly to ensure that every application is screened and verified efficiently.

We believe that as an industry, it is crucial to embrace and welcome as much screening as possible initially to avoid any revenue-disrupting issues later. Additionally, we are constantly working on improving our services and introducing new features to make the sign-up process as easy and streamlined as possible. At TickleCharge, our clients can speak to a human rather than a machine, which we believe goes a long way in providing a more personalized and seamless experience.

It’s shocking to see how some payment providers charge as much as 13% per transaction, which can completely cripple a business’s profitability. Fortunately, we at TickleCharge are committed to providing fair rates and have been able to help some of our initial merchants reduce their transaction rate to a more manageable 5%. On top of that, we’ve gone above and beyond to help merchants navigate certification issues with their banks, proving ourselves to be not just a payment solution, but trusted consultants who guide our merchants to grow and increase their earnings.

What is the signup process for TickleCharge?

At TickleCharge, we believe that signing up for a payment gateway should be a painless experience for merchants. We offer a personalized approach to every merchant that comes our way.

From the moment you get in touch with us, we’ll take the time to understand your business, its unique needs, and any potential pain points. Our team of experts will then identify the best processors and acquirer banks for your specific situation, negotiate the best Interchange rate possible, and guide you through the entire application process.

What sets us apart is our focus on quality and attention to detail. We don’t just want to provide you with a payment solution; we aim to be your trusted advisor and consultant who helps you grow your business and increase your revenue. That’s why we take the time to evaluate your website and provide you with valuable suggestions before submitting your application for underwriting.

We understand that the adult industry faces unique challenges, and we have the expertise and experience to navigate these hurdles effectively. That’s why we carefully screen all applications to ensure that merchants won’t get flagged later, something that some of our competitors fail to do. Our commitment to transparency, honesty, and customer service has earned us a reputation as a payment gateway that truly cares about our merchants’ success.

Whether you’re a new business just starting or an established player in the industry, TickleCharge is here to help you streamline your payment processing, reduce your transaction costs, and boost your bottom line.