If you are planning on operating an online gambling platform, you are going to need a gambling merchant account. Gambling payment processing is integral to your operations- without it, you cannot receive deposits, or make payouts. The online gambling industry is vast and, like other industries has nefarious actors. Therefore, conventional banks are somewhat sceptical of those operating within the gambling industry.
Getting an online gaming merchant account is not easy, but if you comply with the requirements and provide the required documents and information, as well as going through an experienced corporate services provider, the chances to get your gaming merchant account approved are extremely high. The key to success is partnering with someone who knows the industry and can help you navigate the complex application process.
What is a Gambling Merchant Account?
A gambling merchant account is a credit card processing account that specifically serves online gambling companies. Its purpose is to accept deposits, payments and to facilitate payouts and players prizes. It will typically be linked to a payment processor that is integrated into the website and/or application.
Why is a Gambling Merchant Account Considered High-Risk?
Gambling companies are considered “high risk” by most banks. This is due to several different reasons which we will list here.
- The gaming business is considered to present a higher risk to the underwriter, therefore it is considered high risk.
- While today, online gambling is very well regulated and organized, some financial entities still believe that certain threats exist. In time, they will likely become more up-to-date with the industry and more trusting of online gambling providers.
- Casinos and online gambling businesses are prone to high chargeback and refund rates and increase the risk the processor may incur when processing credit card payments.
- They also have a higher turnover which increases the risk for processors.
- Credit card processors often terminate online gambling merchant accounts when businesses cannot keep a low (less than 1%) chargeback ratio. Processors don’t want to be responsible for any balances that the gambling platform cannot cover.
- Many gambling businesses are based offshore and there are concerns over the incidence of money laundering and fraud.
This doesn’t mean that getting online gambling payment processing is impossible. There is still a way to get legitimate payment processing accounts to serve your online gambling site.
Why Do I Need Gambling Payment Processing?
If you are setting up an online gambling company, you will need online payment processing accounts. Without them, you will not be able to accept payments via credit cards, or other popular online payment methods.
As a gaming provider, you need to be able to accept credit cards and payments from around the world, 24-7. You also need to be able to process these payments securely and efficiently.
Tips to Keep Your Gambling Merchant Account in Good Shape
There are some other actions you can take to keep your gaming merchant account with a chargeback ratio below 1%. They include:
- Ensure that your descriptor is clear and that your clients are aware of it. Most users will refuse a charge if they don’t recognize the name
- Recording details of every transaction and archiving them appropriately. This should include the date, time, and the IP address of the computer from which the payment was made
- Ensuring that an automatic receipt is sent once a transaction is complete
- Conducting customer satisfaction surveys
- Offering full refunds when necessary (too many refunds can also get you in trouble)
- Communicating with customers using knowledgeable and skilled customer support or processing team
How Can iPaytotal Help Me?
iPayTotal has been working in online gambling since the industry first began. During that time, we have amassed a wealth of hands-on experience and knowledge in corporate services, online gambling, licensing, and opening bank accounts for clients. As an online gambling operator, trusting us with helping you get your merchant account is a smart move. We have developed decades-long relationships with processors and have solidified these with our commitment to honesty and transparency. To find out more about opening an online gaming merchant account, contact us today!