Hey, all! I was curious about this for a while now, and I just thought I'd ask. I have an actual business license and pay taxes, and I was considering using a point of sale reader to make things a lot easier for myself and my clients. Of course, the charge would not read anything even remotely suspicious or explicit, and I wouldn't insist, but rather offer it as an option. But, would it be used? Would it be worth it? That's the question.

I’ve used a CC on a few occasions with providers: a few times with my ATF, who like you has a business license (and a plausible reason why I’d be a client for that business). I’d trust her with my life. And I used a CC with another local provider with a (side) business license and a long, sterling  track record as a provider—plus I know where she lives.  😉

No.

trick question?  Why would any monger want to have a digital trail of his participation in illegal activities?

No, it wasn’t a trick question.  No provider in her right mind would have her “business license” tied to illegal activities. And no monger in his/her right mind would use a CC if it could be traced to an illegal activity.

more power to you, but there is still a digital trail between YOU and HER, regardless of whether it's in the name of a business she owns.  Some providers use shell businesses to clean up the money.  I know, because I have had a few ask what to do when they get an audit notice.  Unless it's a brick-and-mortar business, you should be more careful.  I agree you are probably 90% safe, but if she gets audited, and has no records to back up how she got the income, like inventory purchases and sales, etc., investigators will widen the net using bank records (including credit card accounts) to see who else might be involved.   Just my advice, but you are free, as always, to ignore it.  

Agreed.  Dumb idea.  Additionally, the client could charge back for shitty service.  Also, an account can open the escort up to income tax tracking.  Some of the foreign escorts might not be able to open a bank account, let alone a POS.  

I read recently that there is a lot of credit card fraud going on by people disputing the charges that were legit.  Of course, as you say, that is not going to affect the monger, only the provider who took the payment by card.  She can't really fight it without the disputing customer revealing that she is processing sex payments, then the bank drops her account and she is even worse off.

You trust an escort with your life?!  Yikes!  BTW, credit card is her liability not yours.  fees, charge backs, income ... etc.  

is some lower life form incapable of being trusted no matter what?

You’re a businessman, right?  Thus you should know some types of businesses don’t require inventory, and credit card transactions can serve as evidence of sale of services.

Really?  I thought you’d know better, given all the experience you claim to have.  

the one perpetrating the fraud, he cannot be a victim, so the impact of the fraud is visited on the provider, not the monger.  Any effect on the monger is self-inflicted.  I thought you would be able to understand it.  I will dumb it down a little next time.  A recent article said disputing charges that are legit has been on the rise since Covid.  I did not say that it never existed before now.  You have always been one to put words in other people's mouths in order to sustain a losing argument.  This is a fine example, and you will probably do another one.  

of doubling down, and of nit-picking, I’ve seen here.  Congratulations.

Thank you, Steve, for your honest reply. I appreciate detailed feedback, of course.

Why would I bother with a trick question?

I'm not surprised that you are an expert at withholding payment from a provider after services are rendered.  I think that pretty much establishes your cred, albeit not in a good way.  

the odds of having something bad happen to you when using a credit card for paid sex was about 10-1 against.  AGAIN, if YOU are comfortable with that level of risk, then that is choice that you can make, but if you are going to argue that the risk is zero and there is no chance that anything will ever happen that connects you to a prostitute through your credit card, you are stretching the bounds of credibility with a position like that.  

word that you are sophisticated enough in tax audit matters and structuring your business to have COMPLETELY insulated your "legitimate" business that you are laundering your money through from the illegal activities that produced the income in the first place.  Some customers will be okay with trusting someone they don't really know to keep them safe in an audit, others won't.  I'm not saying it can't be done, but tax investigators know what to look for.  A friend of mine just retired from the IRS and has many stories about cracking money-laundering or cash-skimming cases where the people seemed pretty smart, but made mistakes either in the setup of the business or in the operation that made them vulnerable.  How comfortable are you that you are audit-proof in the way you handle your digital payments?

at a come-back and a dig.  But then, that’s typical for you.

if my name is on a list of CC transactions for a legitimate business, along with the names of many people who are clients of only her legitimate business?  Should they worry too?

But I'm not at all trying to do the bulk of business that way, of course, so that the influx wouldn't be staggering. It's more an idea for my more trusted or repeat clientele, to offer a bit more convenience. To be clear: I keep my receipts and have my taxes done professionally, to avoid any issues.  Also worth noting: I don't at all put any of my money into anything extra lavish or luxurious, either. Not just as a matter of keeping things square in my perceived tax bracket, but as a matter of my own standards and principles. Frivolities aren't my thing, and it's kept attention off of me since I began (the present changes in things at the IRS being duly noted, of course).  

If you're using Cashapp or Venmo, particularly with the latest tax law developments over the last couple of years, you're running a risk to both parties, as well; even if you're listing it as a gift (which has a set of its' own tax limits for everyone involved). If there's a legitimate business and a known CC reader involved, I'm not sure what the fear would be. It's a small risk in as far as taxes go, especially if there's a high volume, but just a different set of similar risks as opposed to going with virtual payments.

I have literally everything to loose in a divorce.  So no digital or paper trail for me .
When I am single. hopefully someday soon...  I'd be fine with it..  

Lots of discussion above about risks to the client from digital footprints.  So I won't go there.  Instead, I'll point out that you may risk losing your merchant account if you accept payments for another business purpose or line of business.   Take an example outside of escorting. Let's say you have an established business selling flowers.  You accept cards as payment for the flowers you sell. Now you want to sell your car and the buyer wants to pay by card. You take his card and process a payment for $5,000 for the sale of the car through your flower business merchant account.  

Quite understandable. Thank you!

Would I use a credit card... how do I put this...hellllll no. Every shred of bank account activity nowadays is shipped off to whomever wants it, and to the federal government.