Online gaming is a general term that is used to describe any form of an electronic game that is played over the internet. It is one of the fastest-growing industries nowadays and has become a worldwide trend. There are millions of players around the world who fight, buy, craft and sell in the different world of online games. Online games have become a great source of entertainment for people of all ages. Technology makes it easier for everyone to play online games. Aside from computer and consoles, people can now play online games through smartphones. With online gaming taking off worldwide, online gaming merchants must find the best online gaming payment processing solution to maximize profits. Having online gaming merchant account helps online game businesses to be able to accept payments in real-time. But getting an online gaming merchant account can be challenging. Oftentimes, merchants are surprised and confused when they are told that the online gaming industry is considered as high risk by acquiring banks.
Why is online gaming considered as a high risk?
There are a few reasons as to why acquiring banks consider online gaming industry as high risk. Online gaming businesses, especially start-ups, are unfamiliar with the risk involved in the said industry.
1. Card-not-present environment
Aside from the credit card itself, the cardholder is not also present at the time of the sale transaction. This increases the risk of fraud because the cardholder is not available to sign the purchase.
Click To Know More about Fraud in the Online Gaming Industry.
2. High Chargebacks
i. Subscriber Remorse:
There are online games players who join the trial period membership and may oversee that they opted in for a recurring bill wherein which the cardholder will be automatically billed every month unless the player unsubscribed.
ii. Exaggerated Claim or False Advertisement of the Online Game
Some games are falsely advertised to attract players. Some games are also very hard to play which results in gamers filing for chargeback with their card issuer for the purchase of the game after getting frustrated with the game after a few trials.
iii. Other common cases are situations where children who play games online accidentally use
the credit card of one of the parents to purchase a paid app and continue playing the game. Some teenagers also use the card of the parents to purchase a game enhancer or to quickly advance in the game they are playing without the permission of the said cardholder. In both cases, once the cardholder sees the charges in their credit card billing statement and unable to recognize the transaction, they will immediately report it to the acquiring bank and file for a chargeback.
iv. Lack of Clear Refund Policies
Online gaming companies should have clearly stated refund policies and also provide an appropriate level of customer support in dealing with consumer complaints and inquiries. Players who are unable to readily contact merchants to voice out their concerns may just turn to their card issuers for chargeback instead of asking for a refund directly to the merchant.
3. Download File Services
Having files being downloaded from websites poses a significant amount of chargeback risk because of the following possibilities.
- Files being corrupted after downloading
- The online gamer may not be able to download the correct file and get the wrong file instead.
- The downloaded game is not what the customer expected as seen in the ad that he or she watched.
- The computer or mobile device doesn’t have the necessary specs to be able to download the file.
Although it may be tough to secure a reliable online gaming payment processing services, there still are providers that offer and even specialize in providing online gaming merchant account services for online games and businesses.
What features to look for in choosing the best online gaming merchant account provider?
1. Multiple payment options
All forms of electronic payments from customers must be accepted such as usual international credit card types such as Visa, MasterCard, Amex, etc., debit card payments and also ACH transfers or electronic bank to bank transfers and other alternative payment methods.
2. Multi-currency payments
Ability to receive international payments can be a great advantage for an online gaming business. The online gaming merchant account should be able to receive payments from the world’s most popular currencies to be able to attract players from all over the world.
3. No transaction cap
Transaction cap hinders the growth of the business. IT is a must that the chosen payment solution can handle as many transactions as necessary.
4. Auto-pay service
Another useful feature to look for is the capacity to help the online gaming merchant to set up and manage one-time and recurring bill for player members that can be auto-paid with the agreed set schedule.
5. Supports free trial business models
Most available online games in the market include free trials of the game for the players to have a actual experience in playing the game and enticing them to either pay to continue the gem or unlock the succeeding chapters or pay for equipment or gears that help them advance in the game.
6. Gift card and loyalty program integrations
There are gaming companies that are also soft selling gift cards to players. Players who do not have credit or debit card or are just fearful to pay thru credit or debit card may just opt to buy first a gift card for their gaming purchase. Also, to increase the number of players, it is also essential to integrate gamer referral bonus and loyalty incentives for those who do in-app purchasing frequently.
7. Built-in fraud protection system
This helps in preventing fraud attempts that is adamant in online businesses.
8. Competitive rates
Getting the most competitive rate can ensure the resiliency of the online gaming business.
Signing on with the right online gaming merchant account provider helps in achieving growth and success of the online gaming business.
Increase Your Earnings With iPayTotal’s Gaming Merchant Accounts
You need a way to acknowledge 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, call us directly at +44 800 776 5988 or get in touch with us through our website.