Processing company StandardPay has published “ MCC 5967: Taking the Mystery Out of the Code,” an e-handbook designed to help adult entertainment businesses understand the essential online processing laws, regulations, and limitations.
According to the company, the information within the handbook will help adult businesses make informed decisions when choosing merchant bankers and assist them when problems arise.
Most adult industry companies understand the basics of online processing, a company spokesperson said. For example, in order to accept credit-card and electronic check payments online, merchants must have a merchant account. Beyond that, they may not be aware that there are penalties and fines associated with high levels of fraud, excessive charge-backs, and failure to follow specified banking regulations. Ignorance is no excuse, however: Failing to heed financial processing requirements can lead to frozen accounts and fines in excess of $500,000.
In addition, both neophyte and established webmasters often fall victim to high-risk processing agents who do not give good advice, the company asserts, even though the “agents” represent themselves as professional brokers, mediators, or business consultants. These “experts” can fleece companies of funds and then flee. Understanding credit laws helps webmasters arm themselves with the information they need to choose reputable merchant banking companies.
Another problem that plagues adult entertainment companies is a lack of information relating specifically to Visa and MasterCard credit card rules and regulations. Banks may get frequent updates, but often the information fails to trickle down to merchants.
StandardPay created the MCC 5967 handbook to help adult entertainment providers in what often is referred to as a “high-risk” industry. The booklet can be obtained directly from StandPay.
