We’ve had our doubts that worldwide credit card processing for high risk organizations is gradually becoming more troublesome, with banks progressively firming up KYC prerequisites and diving further into merchant processing histories. Acquiring banks’ aggregate resilience for risk essentially isn’t what it used to be.
We as of late perused plenty of news with respect to the freeze of Satabank in Malta, which left a bunch of internet gaming merchants scrambling to recover the assets they’re owed, as well as to discover substitution merchant account options fast. At the point when the assets of merchants are frozen, there is no chance to get for them to pay out customers, pay obligations or pay workers. It, as a rule, prompts reputational concerns and a significant part of the time, a failed business. The main positive news to be reported was that those gaming merchants affected will get their funds gradually – over ‘a period of time,’ surely not quick enough – by the request of the Malta Financial Services Authority.
The Satabank freeze has caused a level of anxiety among online gaming merchants in Malta as well as in the European Union. Internet gaming is annually $1.2 billion industry in Malta – in excess of 10 percent of the nation’s total national output.
Merchants are requesting that Satabank and the MFSA find them another solution – and quickly. While internet gambling as one of the nation’s greatest industries, the MFSA would be astute to do as such.
If Internet Gambling Merchants Could’ve Done It Different…
From the beginning we have supported the idea of multiple merchant accounts for several reasons:
- To control volume
- To lower chargeback rates
- To reduce the merchant’s risk level
- To have a security net in case of a bank shutdown
Being in the high-risk global credit card processing space and knowing the instability of acquiring banks in the present atmosphere, there is no preferred time over to open an additional merchant account – for the advantages we recorded. The merchants affected by the Satabank conclusion are in a circumstance we wouldn’t wish on any merchant: frozen resources keeping them from making payouts to outraged customers. Tragically, most internet gambling businesses won’t recover.
Where Have We Seen This Before?
It is a vital part of high-risk global credit card processing: Out of no place, we’ll get a storm of request – phone calls, e-mails, skype messages – from merchants in a similar industry, generally from a comparative topographical region. A procuring bank presents notice to its system of merchants that it will no longer offer services for a particular industry.
We saw it this past summer with dietary enhancements merchants, clarifying they were allowed a 30-day see by a small acquirer and were reckless for a merchant account solution. In the past, we got in excess of 30 requests from online pharmacy merchants in Canada looking for payment solutions after an expansive, surely understood bank declared it would stop offering credit card processing solutions for internet pharmacies.
The bank did as such with little notice and clarification (we’re genuinely sure of the genuine reasons), basically reporting its decision. Online pharmacies and dietary supplements businesses present noteworthy risks, some similar to online gambling:
- Chargebacks: A shopper orders supplements on the web, however following 4-6 weeks, they don’t have the expected result. Despondent, the buyer files a chargeback, alleging disappointment.
- Transaction Laundering: Many ‘merchants’ endeavors to pass their pharmacy or supplements businesses off as authentic, when they’re selling items unapproved – and by and large not legal – by their acquiring bank.
Acquirers Simply Tire Of The Risk And Loss Of Revenue
Chargebacks are also in plenty in the online gambling industry. Buyers figure they’ll play a couple of rounds of poker or blackjack just to lose a significant aggregate of cash. Inside the resulting days, for the most part out of blame, the buyer will phone his/her credit card issuer and claim that the credit card had been stolen and utilized fraudulently, that it wasn’t them who made the buys.
With the recurrence of such fraudulent movement relentlessly rising, acquiring banks have progressed toward becoming tired of the risk and the loss of income. Subsequently, they just select to remove the industry from their portfolio.
Global Credit Card Processing – We Have The History
iPayToTal has for some time been in the high risk global credit card processing space, from long particularly in the industries of online gambling, CBD and travel. Having extended its industry to more than 50 high risk business types, we’ve discovered that the key to longevity has been our longstanding associations with acquiring banks worldwide that appreciated businesses delegated high risk.
If you are looking for an online gaming Merchant Account, you are in the right place, as IPAYTOTAL provides the best solutions for Low and High Risk businesses. We guaranty quick real-time credit card processing, top-notch services and at reasonable rates. Give us a call at +44 800 776 5988 or get in touch with us through our website.