I wanted to blog about this as a lot of clients ask why you take cash only? Or do you take bank transfer or take card payment?
Let’s get one of the main assumptions out the way, shall we?
Escorts accept cash to avoid paying tax?
Not true with many escorts , the simple answer is they pay tax!
Although you still get a few escorts that don’t declare, same as you get tradesmen, market stall holders, beauty therapists etc that are not registered for tax.
Most escorts are self-employed and have business accounts and put their money through the tax. How else would you get a mortgage without SA302s? How else would you get car finance / loans without showing income? The same with renting you need to show prove of income. The list goes on!
You also need to put your cash earnings into bank for business expenses which are tax deductible. For example, for touring hotel costs (and the majority of hotels don’t accept cash nowadays), fuel / travelling too tour, advertising online etc.
So, what are the main reason for escorts accepting payments in cash?
Credit card processors problems / Bank transfers fraud are main reasons
Escort work is legal in the UK, but escorts are mainly set up as a sole trader often have to put something else on HMRC and business accounts for example Holistic therapist / Beauty therapist/ model etc. This is due too the fact that no bank in the UK is sex worker friendly, neither are any mortgage companies, they deem you as high risk to get a mortgage / loan. Also, most banks refuse point blank and discriminate against sex workers and will not allow business accounts etc for these legal adult / sex work activities.
I bank my cash income from escort work, but I have a salary from other work, and payments/ bank transfer with another legit business (not adult related). So, I don’t tend to get problems with my business bank account at present but have done in the past.
I myself personally had bank account shut down (in past) after paying for adult advertising online with cash deposits going in bank as well. I know other sex workers suddenly had business accounts shut for Only fans or other adult website on their bank statements along with cash payments. Or simply for cash payments and had to go to the Financial Ombudsman to get their money back. This is a common occurrence.
And a lot of banks now limiting cash payments of 20k a year, turnover. So many escorts have to have several bank accounts. Remember that’s 20k turnover NOT profit!
On top of that we have to pay banking charges for cash deposits, so again it’s more costly.
But one thing with paying cash in, in worst case scenario they can question where the cash came from and if you say holistic work/ beauty therapist or push comes to shove I’m an escort it’s not illegal, (but you be breaking the business banking terms as they don’t accept adult businesses),they close your account and you just move your cash too another bank. Or personal account.
Bank transfers – why I don’t accept them
I will not accept bank transfer for several reasons:
Reason 1: I don’t want my client getting any personal details of mine or neither do I feel the client should give his personal name or financial information, I think this industry is all about discretion and paying via bank transfer opens up both escort and client to risks.
Reason 2: Another reason bank fraud / charge backs. Yes, this happens quite frequently! A client has paid for services via bank transfer, then does a fraud chargeback and the escort ends up having her bank account shut down or even been cases having notices for fraud against their name and having difficulty getting any other bank accounts.
Even taking deposits is risky as banks are seriously clamping down on payments of even small accounts and blocking major payments / putting them on hold, contacting their banking client directly and asking questions about what the money is for etc. This is happening in many industries not just adult. It’s tighter fraud controls.
Reason 3: Bank transfer scammers.
“Oh, I’ve sent a bank transfer. It be with you in a few hours etc”. Escorts have done the service and then found out been scammed and people are using fake banking app screens to pretend money gone across.
Card processors – the risks and benefits
Risks
Escort / adult industry is seen as high risk. Websites that take advertisements for adult services like classifieds / directories/ or escorts who offer credit cards payments for personal services etc usually have a European / offshore processor for this.
Many escorts now take payment via card, but they put this down as another business. And again, clients can still do chargebacks, so for example if you say do a booking for £100, so clients pays £100, then client does a chargeback, the client get the £100 back plus the escort (merchant) will get a £35 charge back fee as well. So, escort just done a service for free, lost the £100 and been charged another £35 on top!
A lot of escorts offer chip and pin which limits the risk of this chargeback.
But if you do manage to get an adult payment processer its usually offshore one and you usually need a high turnover of card payments and pay 15% rate taking escort payments and there’s high chargebacks and often the processor holds the money on 60 days in case of chargebacks. Again, too much risk for me.
Benefits
Yes, it’s easier for clients pay by card, debit or credit card and a lot of clients getting cash out of cash machine or stashing cash can be inconvenient.
I may consider doing a card processor in future, but I will set up a discreet business for like holistic therapy name and would only take payments via chip and pin to minimize risk.
Again, this is something I may consider but have to do more research into this.
PayPal – No way!
No sensible escort accepts PayPal, again PayPal will shut your account down and not give you the money as it’s against its t&cs for using for adult services. But there maybe other PayPal type services out there that accepts adult industry I may look into it.
But for the time being its cash only I’m afraid!
Ruby xxx
