A casino payment gateway refers to a payment gateway that functions with online casino businesses. To understand this concept, we should describe the payment gateway first and then dig into an online casino payment gateway to know how payment solutions for this kind of business vary.
A payment gateway is a technical solution for online businesses that assist in handling online transactions safely. Basically, it is responsible for approval. In other words, it secures transaction details and transmits them from the merchant’s website or application to the payment processor or acquirer. Then gets a revert (approval or refusal) from them, and forwards it back to the merchant’s website.
However, an online casino is a kind of activity that indicates money risk for a chance of winning more funds. For example, partaking in lotteries, online casino gaming, roulette, and card games, like poker, or blackjack. It is regarded as a high-risk industry by banks and payment service providers.
Global online casino is a huge market, predicted to reach $112 billion by 2025, along with the restrictions became the main barrier to the growth. This is because every country has particular laws concerning casinos. However, businesses offering such payment services have to follow local laws to enter new markets.
Five Payment challenges online casino businesses have to face
Here are some complications that online casino businesses have to face:
Getting a merchant account
Due to the involvement of high financial risks, it is not easy for an online casino business to get a merchant account. Most payment service providers and acquiring banks are scared of providing merchant accounts to businesses in this industry.
Still, you require a merchant account to receive online payments from gamers and pay them with rewards or gifts. To make it confirmed, ensure your business encounters all restrictions and has the license or required certificates. So, compile all the documentation payment providers demand, and prove your transparency and dedication to your online business with a decent history.
To provide the increment in chances of merchant account approval. Just try to get connect with payment providers that particularly provide services to online casino businesses.
Selecting payment methods
It is complicated for an online casino business to offer all the payment methods that customers want, regarding the industry specifics. Firstly, most gamers are unwilling to use credit cards for casino payments. Because they don’t require such transactions to be shown in their bank statements. On the other side, customers may want to pay with their desired payment method. Maybe it is a bank card, or a digital wallet enabling them to pay via a single click or a cryptocurrency. Online casino businesses should research how to deliver customers with payment methods they’re most likely to use, concentrating on geographics and industry statistics.
Handling payments and payouts
It is vital in online casinos to receive and perform fund transfers in several different ways. From credit cards to cryptocurrencies, assuring a high conversion rate and speed. Prefer an omnichannel casino payment gateway that delivers equally strong processing abilities for both incoming and outgoing online transactions. Such solutions may cost higher fees. But they will retrieve according to customer satisfaction.
Do not ignore to jump on the payment gateway’s demo, where their sales executives will reflect you the solution and its aspects and answer all the questions.
Online casinos are frequently affected by chargebacks and refunds. Every casino application must keep in mind that if their chargeback ratio exceeds 1% credit card processors can block their merchant accounts.
To maintain the chargeback rate of your online merchant account to less than 1%. You can depend on chargeback reduction features and practices your casino payment gateway delivers. You must concentrate properly when performing every step of the payment process clear for the online gamer, and perfectly save details on every online transaction. And also enhance your customer service to calmly solve any issue with customers. Remember that complete refunds will charge you less than chargebacks with fees and risks.
Unfavorable terms & conditions
This factor is for all other complications and financial risks online casino businesses encounter. For instance, as a high-risk industry, it has to pay higher charges for payment gateway services as compared to other sectors.
It often faces fraud, usually so-called friendly fraud. And at the same time has to verify it’s not fraud itself.
Most online casino businesses have higher revenues, which increases the doubtful gateways and payment processors have about them, as high volumes are hard to observe.
And basically, strict restricted requirements and their recreation around the globe make compliance rules a load on the online casino business.
How to select a casino payment gateway for an online casino business?
A primary question to ask when selecting a casino payment gateway is to what capacity does a payment gateway assist to solve all the challenges discussed above. Assure the payment solution you will connect with has all the features required to meet your respective industry business requirements.
Basically, it must enable you to receive online payments and make payouts to gamers via different payment methods. The payment page, or checkout, must be user-friendly and reflexive, enabling customers to select the desired payment option and pay by making a few clicks. Lengthy and complicated payments can result in ruining the conversion rates.
An online casino payment gateway should also be compliant with the regulations and security measures of PCI DSS. It will support you in building trust among customers and protect their payment details and transaction information. Another thing that matters a lot is the cost of a casino payment gateway. Typically, an online casino payment gateway costs various kinds of processing fees: setup fee, monthly fee, per transaction fee, etc. The charges also vary from gateway to gateway. So ensure to calculate expenses in advance to select the best offer.
If you are executing a global business. It is crucial to analyze the geographical coverage a selected payment gateway has. Sometimes you will require more than one payment gateway to meet your business requirements around the globe. For such cases, Amald is a payment platform that enables operating with various payment service providers consistently and easily. And it is just a go-to solution.