In addition to a current bank account, Internet gambling companies need a merchant account in order to process players’ payments. When applying for online gambling merchant accounts gaming companies will usually need to provide, a letter from their bank, valid ID or social security number, certificate of incorporation, recent bank statements and proof of a safe and legal gambling website with a minimum chargeback ratio history. Depending on the level of risk a merchant account may be approved with restrictions. Merchant accounts often come with services such as 24/7 customer support, recurring billing, chargeback management tools, a payment gateway, fraud filter and more.
Online Gaming Merchant Account Services
All Internet gaming sites need merchant account services to process payments. A merchant account for online gaming should include services such as credit card processing solutions; fast account approval; e-commerce and retail options; chargeback management tools; payment gateways; multiple payment solutions; fraud filters; intuitive compatibility and comprehensive customer support. To find a merchant bank account for your gaming business it is best to avoid the traditional banks and instead use the services of a company that specializes in high-risk merchant accounts. Although the processing fees and competitive rates tend to be higher with high-risk merchant accounts, they have the underwriting ability for online gaming merchant accounts as well as experience working with the gaming industry.
Online Gaming Industry Merchant Account
When choosing your online gaming merchant account, it is important that your service provider has previous experience working with the gaming industry. Traditional banks usually prefer not to take on gambling businesses as new clients because of the high-risk involved. The gaming industry has a reputation for being high-risk. They present a potentially greater financial risk to merchant banks and the industry has a reputation for illegal dealings. To improve your chances of being accepted by a payment processing provider, it is best to handle any unpaid bills, low credit scores or negative account balance before applying for your merchant account. This will increase your chances of being accepted. Even if an Internet gaming businesses has a history of bad credit, excessive chargebacks and rejection by credit processes, they can still find a high-risk merchant bank account to process their online payments. With the right payment processing provider online gambling businesses can start operating with confidence and know that they are backed by professionals.
Online Gaming Merchant Account Requirements
Online Gaming Merchant Account Fees
Online gaming merchant account costs vary according to the payment processing provider you use; your business; your credit history; your account requirements and your jurisdiction. Online gaming merchant account rates start with a set-up fee that can range from zero to a couple of thousand. Then there is a fee of about $1,000 ($500 each) for registering with Visa and MasterCard; this fee is paid annually. Some payment processors cover the cost of the initial registration but eventually they will charge you for it. Once those initial payments are made you can then choose which pricing model you want for your merchant account. You could pay a fixed percentage plus a fixed per-transaction fee. Alternatively, there is a tiered price model where your provider charges according to how much risk is involved in each transaction. Some payment processing providers charge a variable percentage of the transaction plus a transaction fee. In addition, there are the charges for various optional services like insurance coverage and security monitoring. The rates for gaming merchant accounts include an account fee; optional 3D secure; refund fee; retrieval and chargeback fee. There will also be a PCI compliance fee; a rolling reserve charge and charges for use of the payment processor’s gateway including a transaction fee, monthly fee and 3D secure transaction attempt fee. If and when you decide to close your merchant account, you will be charged a termination fee.