Banks and the Sex Industry

[GroobySteven]

I have both experience and knowledge of this.
We were with Central Pacific Bank when we were in Hawaii for about 8 years, we were called one morning and told, they don't want to do business with us any longer and we were given two weeks to find new banks. They had a new CEO who was religious and he didn't want adult business as part of his bank.

Despite my company and many others having a track record, of decades, being transparent, never taking a loan of having any issues, we're considered 'high risk' because we work in adult. We tried to get a business mortgage in California and were unable to because we work in adult.

I know models/escorts who have had their personal accounts closed when the banks have discovered that they are escorting, or doing adult work, even in a legal way. Banks do due diligence with all their clients and this is how they find out.

There are less than 10 US banks that process for adult. There are 1000's that process non-adult.

[krissy4u]

Absolutely affects smaller individuals as well. I've excellent credit and have been denied merchant accounts, bank accounts, and loans due to being "in the industry"... and I'm probably about as discreet about it as they come. This isn't my imagination either - I've been bluntly told by merchant account providers that they won't process adult industry funds. Additionally, if you actually read the extremely, very fine, miniscule print of most banking transactions as described, it forbids things like gambling, illegal activity, and adult industry transactions.

Things are KIND of changing with independent card processors but it is still difficult if you don't have a way to be discreet about it. TBH, you should always tell the truth about your business when it comes to banking anyways - to stay out of future trouble.

And to the point about fighting - yeah... you're NEVER going to win a fight with a major (or even a smaller) bank. You can destroy them on social media as some people have - but in the end - they just aren't going to care about you as an individual and you're just going to waste time, energy, and your own resources trying to legally fight something like this.

[flabbybody]

After 9/11 Congress passed the PATRIOT Act which made banks responsible for tracking deposit activity that could have ties to terrorist groups. It's scary that certain financial service firms are using the law for a misguided moral crusade.
If the banks are publicly traded shareholders should know their CEO's are religious fanatics. If nothing else, it's really bad for business.

[sukumvit boy]

Boy, if this isn't an issue that's ripe for a legal challenge , I don't know what is!
Problem is , in our system in the US it takes either very deep pockets or hooking up with the right civil rights group that does.

[BeardedOne]

There are less than 10 US banks that process for adult. There are 1000's that process non-adult.

Any recommendations?

Also, you mention processing. There's always been a number of horror stories about charge processing (Frozen PayPal accounts, etc.), but this would just be things like check deposits, etc. under an LLC account. Business license, documented stuff (There's actually legal therapeutic massage going on), etc.

[BeardedOne]

Thanks to all those that have weighed in so far. Please keep the notes coming.

[GroobySteven]

Any recommendations?

Also, you mention processing. There's always been a number of horror stories about charge processing (Frozen PayPal accounts, etc.), but this would just be things like check deposits, etc. under an LLC account. Business license, documented stuff (There's actually legal therapeutic massage going on), etc.

Email me at admin@grooby.com and tell me more what you're looking for. Third party might be the way to go, otherwise you might have to look at getting your own merchant account.

[BeardedOne]

Email me at admin@grooby.com and tell me more what you're looking for. Third party might be the way to go, otherwise you might have to look at getting your own merchant account.

Thanks, you may even see me in Vegas next month. I'll buy you a beer or ten.