Online casinos are an online version of the land-based casino. They are also known as virtual casinos or internet casinos which enable gamblers to play and wager on casino games virtually. They generally offer higher odds and payback percentages than traditional casinos. Some of these online casinos even published payout percentage audits on their websites.
TYPES OF ONLINE CASINOS
There are basically two types of online casinos
- Web-Based Casinos
- Download-Based Casinos
Web-based casinos which are also known as flash casinos is where users may play casino games without needing to download software to their local computer. The games are represented in the browser by the plug-in and may also require a specific bandwidth to be able to load the graphics, sounds, and animations through the web. Some game plays can be played through HTML interface. Sometimes these web-based casino games also offer live casino games whereas a there is a human dealer that runs the game in real time from a casino gaming table that can be seen via live streaming.
Download-based online casinos require their software to be downloaded in order to play and wager on the casino games they offer. The risk of the software to contain malware also exists.
Challenges In An Online Gambling Business
Opening an online gambling business is almost close to impossible a decade ago due to the technological limitation as well as legal restriction. It is often difficult to obtain reliable online casino merchant accounts. It was in Costa Rica that many gambling businesses began since it is easy and it is also affordable to obtain a data processing license and offshore incorporation. But accepting card payments is of a different story. As acquiring, banks do not view local gambling license as an international gambling license. And since there is an increase in the online casino merchants, there is also an increase in the merchant payment solutions.
It is ideal to obtain as many gambling licenses as you can with the countries you want to enter with because the more countries your business is able to operate in, the more customers will play and the more revenue to be generated. It is possible to incorporate this business in multiple countries. Others register their businesses in other locations such as Latin America, Panama, Curacao and Belize as these locations are affordable and can easily obtain an online gambling license and it is also easy to open a gambling merchant account.
We can guide you with step by step process of obtaining a casino and online gaming merchant account.
The merchant must pick with which payment processor he will open up a merchant account. Generally, he needs to fill out an online application and also has to ready his secure and operational website. For other requirements these things must be readied as well – valid government-issued ID, most recent bank statements that are issued for last 3 months, most recent processing statements, a bank letter, a Social Security Number or Employer Identification Number and the chargeback ratios must be under 2%.
When applying for a merchant account, the legitimacy and reputation of the business applying are reviewed… They will also review and look at many factors to ensure that the credit card processors are not taking on any unnecessary risks because businesses that fall under the high risk category are often viewed as a greater potential financial burden.
There are several factors that determine a business’ risk and that includes the following – high volume of chargeback, bank statements, credit card processing history, credit scores, negative bank account balances and unpaid bills and late payments.
To guarantee a high probability of merchant account acceptance, the merchant must prepare his business for review and ensure that his business has a good credit history, all outstanding debts have been taken care of, have some money in the bank so that your business does not look questionable.
Online casino is considered high-risk mainly because the industry falls into a legal gray area. It is legal depending on where you live and play. These are prone to excessive chargeback and refunds and also have a higher volume of turnover. Online casinos are often hit by lots of friendly fraud where customers dispute transactions because they simply changed their minds and decided they didn’t want to pay for the services. There is also an increase of potential underage gamblers and out of site use.
Laws in the United States prohibit local online casino businesses that are why these businesses are based offshore. Due to this location situation, reports of money laundering and fraud have surfaced.
And when businesses are offshore, it is more difficult to keep track of their earnings and increase the risks to processors. Most often than not, many of these businesses in the online casino industry are new and have very little to no experience and credit history. Once a business lacks creditor has a poor credit history it increases the chances that this business won’t be able to pay its debt in banks or merchant account provider.
Merchant account providers also consider casinos risky due to the potential of underage gamblers and out-of-state users. These businesses are also vulnerable to fraud because this business generates mostly non-face-to-face transactions whereas there is a greater chance of fraud.
Cybercriminals often attack casinos due to the high volume of daily transactions. If your online casino requires membership the terms and conditions must be fully understood by the player first so that chargeback may be avoided.
There are also many fraudulent behaviors by online casino operators that have been reported and documented like their refusal to pay withdrawals to legitimate winners. That is why online casino has been viewed as deceptive. But there are still payment processors that help legal gaming business to acquire merchant accounts and also help to protect these accounts from fraud by using the most advanced fraud prevention technology and to minimize chargeback to help maximize profits.
Easy Application Process — Get Started Now
To apply for online casino merchant account just fill out our short form and we’ll get back to you and help you save time and save money. IPAYTOTAL is here not only to provide you a merchant account but also to assist you and help you anytime (24/7). Whether you are planning to start a new business or need a help to expand an existing business, we can help you. Our highly experienced and well-educated team, with more than a decade of experience in the industry, will always ready to help in giving you payment solutions to start your new business with safe and secure policies and also to expand you an existing business.