The online gambling or iGaming industry has managed to grow into a massively profitable option for those who are looking to enter a lucrative niche. Those who are in the category of high risk business ventures can acquire a merchant account by following specific steps.
Today, we are going to give you a few key pointers to help you understand this process for optimal results.
Challenges and setbacks to consider when trying to get a gambling merchant account
It is very important to consider that gambling payment processing is high risk most of the time. The reason why it is risky is due to the endless possibilities in terms of chargebacks and refund rates. This is why certain precautions are necessary.
Some of the main issues related to high risk gambling merchant accounts include:
- Credit card processors often terminate if chargebacks go over 1%
- It is seen as a higher risk to the underwriter
- Many financial entities are weary of the industry
- Prone to constant high chargebacks from users
- A higher turnover increases processor risk
Therefore, it is evident that you can find yourself in difficult situations with your high risk merchant account. With that said, their advantages are outstanding as long as the account management is appropriate. In addition, a good merchant account provider is a key aspect of this process.
Why is it important to have a gambling or igaming merchant account?
One of the best things about this kind of account is that it will usually apply for any industry. This makes it a very flexible solution. It is ideal for the gambling industry – mainly due to the way it gives people confidence when they play casino games online. A certified account is also going to open more doors with prestigious financial entities.
It is important to note that cheque bounces and payment issues are less likely to happen when a merchant account is used. You will find it easier to handle all types of transactions. This includes things such as debiting, refunding, and credit.
How to choose a reliable merchant account service provider?
There are many considerations to make when you decide to work with a merchant service provider. Perhaps the most important is to look for a provider that has reliable customer service. There is nothing more frustrating than dealing with a provider that is unable to help with that particular aspect.
Your provider should also be aware of all the issues that can come from the use of these accounts. This is going to allow them to stay one step ahead of any situation. It is essential to ensure that you avoid all the headaches that come from fraud and criminal activities surrounding the gambling industry.
The rundown:
- High risk merchant accounts can be problematic if not setup properly
- They are essential for the gambling industry
- Finding the best merchant provider is going to be essential
In A Nutshell
The use of an igaming high risk merchant account can prove to be extremely reliable and useful. It does have some disadvantages if you are not careful. This is the reason why it needs to be done with a proper number of considerations in mind.
Let CutPay Help You!
We at CutPay understand the needs and requirements of gambling and gaming businesses. We hope these tips from us help you in running your business.
If you want to apply for a merchant account for a gambling or gaming business, you have come to the right place. We accept applications from gambling and gaming businesses that are not just licensed in the UK but abroad as well. For example, businesses with Curacoa gambling licenses are also eligible to apply.
Just fill out the form below and give us some details about your business and one of our representatives will reach out to you shortly!
