Top 5 Reasons Escorts Accept Credit Cards
What You Need to KnowEscort Agencies & Massage Parlors are Doing it
More and more independent escorts are accepting credit cards from hobbyists. The reader may subscribe to the stigma in the adult industry that it’s dangerous to plunge your well-protected identity into an incriminating, virtual footprint. But if it’s really so risky, then why are more and more companions, providers and elite courtesans, worldwide providing turnkey options to would be inquiries, thereby converting them into iron clad clients?
Ivie Kelly
Geisha Affair Asks the Experts
We curious kittens here at Geisha Affair decided to ask an expert, Ibill, one of the most well known merchant services in the adult industry about the benefits of establishing a merchant service. Here’s what we gathered:
- Automatic Verification – ever get the itch that maybe a first time inquiry is not who he says he is? When a hobbyist pays by credit card chances are he’s legitimate.
- Discretion – ‘place your donation discretely in the bathroom’. What if the envelope is placed in your hand at the front door? That’s discretion at its worst. If you have settled up with your client in advance, the meeting will sail smoothly.
- Commitment – you invest in yourself every month by spending big bucks advertising on expensive websites. Unless you require a deposit upfront from potential friends you are delivering a message that your standard of commitment is inconsequential. So when a client stands you up during prime time, you lose. Requiring a deposit rules out flakes.
- Touring – ladies who tour successfully have usually been doing it for a while and may already have an established clientele. But those new at touring may be venturing into unknown territory where new clients are unfamiliar. Touring is an art. A considerable amount of time and forethought goes into planning. At the end, the tour must be cost beneficial. Otherwise, you may end up coming out of pocket which defeats the purpose entirely. I refer back to Commitment. Accepting credit cards for deposit and also offering an easy, seamless method of payment for your clients will not only ensure your success but will be respected and remembered. Go here for info on successful touring.
- Security/Fraud Protection – A friend, who is an established and successful provider, recently told me the story of a new client who left his donation in the bathroom. To her horror, she soon discovered that the donation was nothing more than play money. The guy was even verified by well known sources. Fortunately, she was assertive enough to drive him to the bank where he made an ATM withdrawal and gave her real money. Could have been worse. What if he had been an informant? What if her safety had been compromised on the way to the bank? Or, she got robbed at the end of her meeting by the same guy? Accepting credit cards imposes a valuable security measure and can ensure that your client is not a fraud.
Sensational Sydney
My Only J
Escorts in the Hobby can never be too careful. No one else is watching your back. If you think that accepting credit cards is increasing your exposure, think again. Life is not as simple as it used to be and we must keep up with that pace. Think smart and subscribe to a more sophisticated method of doing business. You won’t regret it.
Reader Comments (20)
But how does accepting credit cards work? I need like the 101's because I think I want to be able to start doing that. Also how you stop them from trying to go back to their credit card company or something and getting their money back?
We girls of AltoNivelClub accept credit cards. We bring the credit machine to you, totally safe! Enjoy this facility and call us right now! Kisses. http://www.altonivelclub.com/
Chargebacks are a huge issue and more than one escort has been burned by this. The trick is probably in screening your clients well and having a very professional business (which means a lot of paperwork and having a CPA).
XX
Charge backs on credit cards or 'getting stiffed' by a cash client is always going to be a risk, no matter what. If an escort is not screening properly and doing it well he/she is going to risk this issue, whether with credit card or cash, not to mention risking her safety in general. And as any small business owner knows, there is always a lot of paperwork. It's the nature of the beast unless you work for an agency. I can't imagine anyone not using the services of a CPA, unless of course they possess skills in accounting.
Oh my God come on! If someone at this point in life does not have an accountant, CPA, an Excel spread sheet or at least Quickbooks then the risk to mismanage cash income or CC income is imminent.
It's not about paper work. This business is not a department store with heavy accounting involved. Credit cards are about convenience and an additional source to receive payments.
There is risk involved in everything and accepting credit cards is no exception. However, it has been up to ME to decide from whom I will accept CC payments. The obvious answer is from those who I know already and are established clients, NOT from the out-of-the-blue caller. It makes sense. Don't you think?
Credit card payments in my business is a privilege I give to some clients - not a right.
Establishing a solid business and keeping accounting straight IS a lot of paperwork (some states more than others). It's certainly more paperwork than what a lot of girls are willing to go through. Having a full-service CPA helps but there are those who don't wish to pay for it (and DIY takes a lot of time to learn).
Lots of escorts would probably like to use credit cards for the reasons mentioned, but there is no credit card 101 to help them get started. And plenty of others just wish to keep their business simple and cash-based.
XX
My understanding is that credit card companies penalize the account holder for chargebacks and if they have a number of chargebacks the penalties go way up or they may lose the account. That's a lot bigger effect than simply getting stiffed for one appointment.
As for not using a CPA, I don't think you understand the very deep level of paranoia (and misinformation) that the majority work under. I'm not saying it's right or good -- only that it is a serious issue keeping many providers from moving forward in their own best interests.
XX
I think I do understand the deep level of paranoia about which you speak. It's not a secret. And misinformation prevails in any industry. But providers are people, too and have the same rights as any other human being.
Let's remember that a CPA is not an FBI informant but a financial professional who properly prepares tax returns and knows what the IRS is looking for in terms of legalities and red flags. Due to the nature of this industry, it is imperative that ladies stay below the radar of the IRS. In fact, the topic of Personal Finance for Adult Industry Professionals was even presented in the Business Development Track at Desiree Alliance 2010 in Las Vegas. We were both at Desiree.
Perhaps having your taxes done by an expensive, conservative financial advisor from a large, corporate outfit is not the answer. But there are plenty of independent, liberal CPA's out there who prepare taxes for all walks of life. I'm sure escort agencies use professional tax services because they understand the importance. In the case of using a CPA or a tax preparer, that is all the more reason to work with one.
Don't you think that if a lady did not calculate her taxes properly that she is going to draw the spotlight of Uncle Sam and turn herself into a red flag? I would think you, of all people, would recognize this, Amanda and voice the same to inform them and relieve them of this paranoia. Especially in a cash industry where completing the proper tax forms and understanding how to calculate net and gross income, how to claim that income, etc. gets tricky. It's may be easy for some to complete their own tax returns with just a pay stub. It's just a question of plugging in the numbers. But declaring self-employed income can get quite tricky. Couple that with an escort doing her own taxes and unless she is informed in the field of accounting, might be at risk of making substantial, numerical errors.
Case in point: just the other day a client/friend of mine told me about her friend who got busted for tax fraud and is doing 7 years in prison. Why? Because she didn't pay her taxes. Perhaps if she had utilized the services of an accountant familiar with her industry who knew how to finesse her records she'd be at home now, enjoying the holidays.
As for credit card companies, sure, the vast majority of ladies do not accept them for prudent reasons which we all know. However, there are many Indys who do (whom I know personally), including agencies. As I stated before, accepting credit cards is probably best reserved as a privilege for established clients. Regardless, ladies must always take the proper measures to protect their safety whether financial, physical or otherwise.
Credit cards are a excellent way to show income...all of us will need to qualify for a home or car loan..and being selective on hiring a accountant to set up a Corporation ..well ..it just gets better from there...your part of the good old American Tax Paying system..and it feels good! MOST ladies carry a "porta-printer" like a little wallet..and NOW..some phones have a attachment where they can actually swipe the credit card.
The girls can set up corporation, for example, "ACC, Inc. " (use a DISCREET name) and when the gents or their secretaries get the bill it does not send a red flag!
Most businesses will only dispute charges where they do not recognize the merchant ID. But on a personal mastercard or visa, most gents will recognize and remember that when he saw "So & So" she told me the billing would be under "ACC, Inc."
Its pretty cool. The gents can rest easy and the provider benefits from being able to show some income. There are a lot of legal sites that can show you how to set up a corporatin and you can start form there.
I am so Glad Geisha Affair has this form to help and assist other ladies... a good source of Knowledge for the gents too!
Keri, your comments make tons of sense. Thanks so much for sharing your valuable insight!
I do foresee at least a few new and quite valuable future topics to be introduced here in the Geisha Diaries forum from which all ladies and gentlemen will benefit.
For example, Keri, I know that you have been utilizing the services of a CPA for quite some time now and are very successful as a result of it.
Stay tuned, ladies and gents for future topics to keep you safe and sound financially, physically and emotionally. Remember, knowledge is power!
Just because you and I understand the issues of small-business taxes does not mean everyone does. That's all I'm saying. Massive 101 education has to be done first. Changing the laws would also make an enormous difference because many sex workers do indeed believe that they are criminals without rights-- just as society tells them they are.
Anyway...taxes and small business issues will be covered in Book 3, in-depth. I have a lot of research to do first, myself! None of this ever has any straightforward answers. :)
XX
Precisely my point. The only reason I know a little about taxes and finance is because I have a background in finance. Otherwise? I'd be totally clueless! The cool thing is that the Massive 101 Education isn't too complicated, unless of course, you're writing a book, like you. Readers will get the benefit of a much more thorough and in-depth understanding of do's, dont's, in's and outs. Ms. Diamonds made her comments to tell the Community that yes, it is possible and actually pretty easy to stay within convention law with regard to working with CPA's as we know it even as a sex worker.
But education is key. That is also why Geisha Affair intends to bring in CPA's, attorneys and financial advisors to talk here in the Geisha Diaries forum about how sex workers can benefit from using their services.
Glad to hear the subject matter of your third book. And yes, the answer is always... "that all depends"! :-D
I use Paypal and it is the same as using a credit card. It's quick and simple and all I need is an e-mail
address to request money. It will also give you the info of your client, which is always helpful.
Madison, Paypal is not legal for adult transactions. Did you not know that? If paypal were to find out you were using your account for such transactions they will cease all your money. Trust me I know. You are better off getting a merchant account that has no problem with adult content like ccbill or ibill.
Unfortunately, Kayla is right. PayPal's merchant account is not a true one such as what you get with IBill or CCbill. With the latter two, adult service transactions are accepted (note the contributing content at the end of this article). If PayPal finds out that you are violating their Terms & Conditions, they will close your account and freeze usage (including withdrawal of funds) for 180 days, no questions asked or explanation given. Being that PP is not bound by any financial regulation and given their worldwide monopoly, they can and will do anything they want with your account and your money. And once your account is frozen, there is no help line to call and inquire. Getting caught by PP can cripple your bank account if you allow funds to remain in your PP account without immediately transferring them into your bank account upon receipt of a transaction. See this website: http://www.screw-paypal.com/resources/paypal_magic/limited_accounts.html
I will consider using cc's when setting up shop, thanks a bunch!
CCBILL charges a very high setup fee to use VISA card for adult oriented services, $700, then $300 a year. I personally use everything except VISA for this reason. Unfotunately, that happens to be the most common credit card.
hmmm interesting...i find that AMEX is the one i cant take...i would have to charge the client almost 20 instead of 5.
True. AmEx fees are more expensive than all other credit cards. But then, AmEx isn't really a credit card.
Ladies - there is a service available - the only one that I know of anyway. www.companiontax.com. It's run by a CPA who is a former provider.