A 2017 survey by The Entertainment Software Association figured out more than 24.5 billion games were sold off in 2016, creating more than $34.4 billion. Game selling involved mobile apps, online subscriptions, downloadable content, and social networking games. At least 150 million Americans play video games, as per the association. Below are some taken down facts from the report:
- U.S. computer and video game organizations recruit more than 220,000 in all 50 states.
- The average gamer is about 35 years old; 72 percent are likely 18 and older.
- Women age at 18 and older consist 31 of overall U.S. gamers.
- 71 percent of parents have studied credit video games for positive involvement in their child’s life.
- 67 percent of studied participants play video games with their children more than once a week.
- 94 percent of studied participants focus on the video games their children play.
SIC, NAICS & MCC Codes
Gaming industry consultants and service providers are classified by SIC Code, NAICS Code and Visa Merchant Category Code (MCC) to abide by with payment card industry needs.
Proper categorization is necessarily important to prevent funds from being put in reserve for misrepresentation. Because of the close correlation of gaming and some other forms of gambling, SIC, NAICS or MCC code can be seen under different general industry codes, depending on the description and focus of services. Below are some examples:
- SIC Code: 7372
- NAICS Code: 511210
- MCC Codes for Skilled Gaming: 7999, 7994 or 7995, subject to monetary rewards and license requirements.
- MCC Codes for Gambling: 7995
How do I set up an eCommerce merchant account?
The foremost step in enabling commerce is setting up a merchant account. Gaming and interactive entertainment are perceived high-risk businesses, which denotes service providers are frequently not eligible for merchant accounts at numerous sponsoring banks. Ipaytotal’s expanded network of banking relationships procedures payments for the gaming industry at affordable and competitive rates, terms and conditions.
Gaming merchants consider it opportunistic to work with processing partners who are akin to this industry, jargon and general business practices. Payment processing sales experts who are not mundane with gaming and interactive entertainment may be less active at managing relationships, because of their learning curves. When gaming, mobile, and online entertainment companies work with sound processing partners, they save time and money, enhance efficiencies and invite and retain more customers and followers.
Why Is Gaming perceived High-Risk?
Various banks will not process for gaming merchants because of industry’s more-than-average number of chargebacks. Interactive gaming organizations, mainly entrepreneurial start-ups, maybe not familiar with related risks of working with customers whose staggering debt ratios and credit obstacles increase the possibility that they will fail on payments, file for bankruptcy or start chargebacks on a recurring game subscription payment. Clients who go excess dependent on gaming may not attain the extent of their involvement, or the consequences it may have an effect on their families, lives, and careers.
Here are few risks commonly related with gaming consumers and subscribers:
Customers who opt in for repeated billing may forget that their credit card will on its own be billed every month. They will then put to dispute the charge that looks on their credit card statement. Many cards issuing banks need customers to contact the merchant before they process a chargeback approval.
Customers who give time and money to gaming, needing to improve their skill level, may start a chargeback out. They don’t even have to prove the company made an excess claim. They only require to demonstrate that a gaming company recommended suggested that they could win or enhance their skill through practice.
Lack of Infrastructure:
Gaming start-up organizations may not have approved levels of customer support to deal with customer grievances and inquiries. Consumers who are not able to voice concerns to merchants may come put to payment card issuers for refunds and chargebacks.
How do I enhance my processing limits?
Once a high-risk gaming industry merchant account is given approval, payment processors establish monthly processing limits, generally between $10,000 and $30,000 per month, for the initial three-to-six-months. This provides processors time to create a customer risk biography by evaluating payment flows, average ticket sizes, processing levels, and chargeback ratios.
Gaming companies that keep a stable, consistent performance around initial trial periods can generally increase their processing thresholds. iPayTotal’s risk management team functions with merchants and sponsored banks to shorten trial periods and increase processing limits.
How can I monitor my chargeback and refund ratios?
Transaction Chargeback Ratio:
Make an addition of the total monthly number of chargebacks and divide that by total monthly number of the transaction. For instance – if in a month you processed 500 sales quantum, and there were around 10 chargebacks, your chargeback ratio would be equivalent to 10/500, or 2.00%.
Volume Chargeback Ratio:
Add total monthly dollar amount of whole chargebacks and divide that by the total monthly revenue volume.
For instance – if in a month, you processed 500k as sales, and your chargebacks were 10k, your chargeback ratio would be equivalent to 10/500, or 2.00%.
Transaction Refund Ratio:
Make an addition of the total monthly number of refunds and divide that by total monthly number of transactions.
For instance – if during a month you have processed 500 sales, and there were only 10 refunds, your refund ratio would be equal 10/500, or 2.00%.
Increase Your Earnings With iPayTotal’s Online Gaming Merchant Accounts
You need a way to accept credit card payments from players around the world, all in real-time. iPayTotal’s gaming merchant accounts offer you a level of service that will help your business succeed and increase profits.
To find out more about iPayTotal’s merchant services for Online Gaming Merchant Accounts, speak with a live representative directly at +44 800 776 5988 or get in touch with us through our website.