Adult Webcam Payment Processing: The Complexities of Getting Paid
Adult Cam Payment Processing: The Complexities of Getting Paid

Adult Webcam Payment Processing: The Complexities of Getting Paid


Adult webcam payment processing is in demand thanks to the growing (and titillating) services offered by many models online. OnlyFans and similar services are normalizing the industry and making it more accessible/acceptable.

Due to the sensitive NSFW content on these websites, larger adult cam networks and independent models can’t just apply for a run-of-the-mill payment processing account. Making a rush decision on the setup of a strategic payment channel could collapse the business.

Credit card networks like Visa, MasterCard, and Discover consider all NSFW content high risk—especially webcam modeling. That’s not to mention that clearing transactions is an expensive, time-consuming process. For some cam models and other adult entertainment merchants, their sexploitations are just a fun hobby. But for thousands of others, their website is their full-time income. They need to make every dollar count.

Sure, there are merchant account providers who are willing to serve high-risk businesses like those in adult entertainment. But navigating the application process and requirements? Now that’s a turn-off. We’re going to streamline it for you so you can focus more on earning and less on processing.

Take A Quick Peek at the Adult Webcam Industry

The cam industry is a subcategory of the adult entertainment market. Models spend time in front of their web cameras entertaining their audiences in every imaginable way. In exchange, fees are paid by the minute or hour.

Nikki Night, dubbed as the Vince Lombardi of video streaming, reports that top performers rake in $20,000 or more per month. Even casual webcam models who want to show a little sexy on the side make an average of $2,500 per month. If you’re serious about joining the industry, a basic setup involves a ring light, Logitech (or some other brand) HD 1080p webcam with autofocus, some kind of privacy shutter, and a platform like Streamate.

Webcam girls have two options for displaying and monetizing their talents:

1. The first is to join an established webcam site in the adult industry.

2. The second is to independently start their own website.

By joining an established online community that offers HD video live streaming, webcam models can avoid the guesswork of using a payment processor. With this option, models get a portion of every payment they receive. The remainder of the money goes to the host site to cover backend costs and fees (e.g. from 20% to 70% of the revenue).

However, it also means competing with thousands of other video models in the exact same place, which isn’t good for business. As such, working from home and independently may be a much more lucrative option.

Webcam Modeling Is Increasingly Competitive

Bella French, a popular Canadian cam girl, claims she made $6,000 in her first month working up to six hours per day, five days a week. Once she got into the swing of things, she increased her cam time to 12 hours per day, seven days a week. Her take-home pay was a whopping $42,000 in a month. Her life is working out and rarely goes outside anymore.

Going from the bedroom to international stardom is no easy feat. That hasn’t prevented thousands of men and women alike from appealing to both domestic and foreign consumers. Arguably, the webcam industry ignited the gig economy. It has given ordinary people a chance to pursue their dreams of becoming an entertainer, finding financial freedom, and working on their own terms.

Since its inception hd webcam services have expanded to include LGBTQ models and fetishes like BDSM, hand kinks, and feet. This has given models more niche markets to tap into and more ways to make money.

Diverse Adult Webcam Work Requires Diverse Payment Options

All of this diversification has been critical for the industry. Consequently, more adult cam merchants must also diversify payment options. Doing so means merchants can accept more cross-border transactions all around the world.

Simultaneously, if multiple payment options are offered to numerous customers, then preventing risk remains top priority. Top adult cam merchants must protect against credit card fraud, prevent chargebacks, and the navigate the complexities of recurring billing.

They must also ensure customers are charged in a timely manner to avoid interrupted service as well as friendly fraud. This is a lot to manage! It’s also why many models (be they independent or not) outsource their payment processing.

Independent webcam models may be more profitable, but the complexities of processing online orders from around the world often outweigh the benefits. For starters, they’re left to figure out their own payment solutions and whether they want to stick to just credit cards or other avenues like e-check, ACH, debit cards, or Bitcoin. In the adult cam industry, it’s easier said than done.

Being a spoke in the adult entertainment wheel, webcam models are considered high risk. Therefore, not all acquiring banks nor payment providers want to onboard entertainers in this field. Many are turned off by the sexual nature of the business, the reputation, and the financial risks associated with each transaction (unfortunately, there’s a correlation between the industry and fraud).

Taking on merchants with this level of risk can put the issuer’s relationship with Visa and other card networks in jeopardy, which leads to most merchant account providers declining webcam models.

Low-Risk Payment Solutions Are Flaccid

Lots of merchants think low-risk payment alternatives like Stripe or PayPal are the way to go. It’s appealing to models with no website experience, coding knowledge, or desire to learn about payment options. For the average consumer or business owner, you’re definitely not wrong.

The simplicity these 3rd-party processors provide is appealing…too appealing. In fact, using one as an adult cam model will put your entire business at risk of being shut down entirely.

These payment platforms consider merchants in the adult market part of a prohibited business category. Direct merchant accounts (and e-check or ACH) are the best payment options for entrepreneurs in this industry. They’re safer, more secure, and don’t violate any terms of agreement.

Some high-risk merchant account providers are already familiar with cam sites; therefore, you won’t experience the typical merchant discrimination associated with most mainstream low risk payment services. And that means you can offer far more popular methods of payment, like credit cards, to prospective and current streamers.

How an Outside Merchant Account Expert Can Help

Payment processing is far from the sexy side of the adult cam industry. But it is a critical part of the business that is too often overlooked.

Whether you are an independent model or streaming on an established adult cam network, it’s essential to develop the right payment strategy. It would outline the proper payment processing method for your business to diminish declines and ease the flow of online orders.

Hiring an outside payment expert is the easiest way to navigate these complexities and prejudices of getting paid in adult entertainment. Because at the end of the day, that’s all you really want: to get paid! It’s not only more profitable for you, but also provides a better experience to the clients you serve.

DirectPayNet helps you explore your options for improving your adult webcam payment channel. We provide support, advice, and assistance every step of the way. This applies to merchants registering for an offshore business and bank account, too, as well as entrepreneurs who need support with compliance and regulations that might affect your domestic merchant account.

Solve your payment challenges today — reach out to DirectPayNet to explore your options for better payment processing.

About the author

As President of DirectPayNet, I make it my mission to help merchants find the best payment solutions for their online business, especially if they are categorized as high-risk merchants. I help setup localized payments modes and have tons of other tricks to increase sales! Prior to starting DirectPayNet, I was a Director at MANSEF Inc. (now known as MindGeek), where I led a team dedicated to managing merchant accounts for hundreds of product lines as well as customer service and secondary revenue sources. I am an avid traveler, conference speaker and love to attend any event that allows me to learn about technology. I am fascinated by anything related to digital currency especially Bitcoin and the Blockchain.