Online Gaming Merchant Account for Understand Varied Aspects

Gaming is among the top profit-making industries, and it has a lot of potentials to earn huge money for the businesses. However, the threats of chargebacks and fraud are also associated with it. This factor makes the businesses face difficulties. Transactions of billions of dollars make this sector highly risky and inspire tricky, and fraud minds try wrong things with the money of the players. Businesses always seek protection from such issues.

The most serious difficulty is finding a merchant account where the company can receive customer’s payments and send them money. Due to the risky nature of the online gaming businesses, conventional banking institutions do not support them. However, the reason to take a sigh of relief is that a gaming merchant account is there to help the business owner.

What is an online gaming merchant account?

An online gaming merchant account is a business account used to process payments of the customers/players. This account is offered by an acquirer, a bank that is ready to work with a high-risk company. The account is arranged by a payment service provider which works as a mediator between the acquirer bank and the business. When the customers make a payment, the money goes through the channel of the payment service provider.

Types of online gaming

Online gaming is not only about a single game; it is an umbrella term for varied types of digital games. They are as follows –

Raffles

Casinos

Small lottery syndicates

Prize draws or similar

Internet sportsbook

Bookmakers

Reverse and penny auctions

Payment service providers consider gaming industry high-risk – why?

With multiple factors, it is possible to prove that the gaming industry is at high risk, and that is why the PSPs and acquirers mark it as risky. The factors are –

Huge volume turnover –Due to the high volume of daily transactions, the turnover of the gaming businesses is quite big. It is why contemporary banks and financial institutions consider them as less safe.

Money laundering – Of course, this threat relates to the factor of huge volume turnover. When billions of dollars get transferred on a daily basis, it is simpler to understand that money laundering is a common issue with such businesses.

More chargebacks due to intangible products – The intangible products may cause more frequent chargebacks. This reason creates an issue for businesses when they apply for a merchant account.

Legal constraints – The government and local administration always give a tough look to the gaming industry. The multiple laws that apply uncompromisingly to such companies make it more difficult for the owners to survive and retain the customers.

The banks and the PSPs do not want to face any issues with the government or get the blame that they are inspiring the gaming addiction. They hesitate to provide merchant accounts and want to play safely without any spot on their goodwill as a renowned traditional financial institution. However, the gaming industry is legalized now, but still, the presence of uncertain laws makes it a tricky sector.

How to get a gaming merchant account?

A gaming merchant account demands a few formalities before a business qualifies for it. There are several factors that a merchant account service provider or a PSP takes into consideration.

Work on the following points to get a gaming merchant account –

Account providers check the frequency of the chargebacks. As a gaming business owner, it is better if you pay heed to your chargeback history and make efforts to improve. The chargeback percentage of up to 3% to 4% is considered risky. Businesses with a higher percentage need to work on their chargeback strategy. Amald helps the gaming businesses get a merchant account even with a high chargeback rate. It can suggest ways to reduce chargeback incidents.

Business owner’s personal credit history and business credit history are essential. Finance companies already consider the gaming industry unsafe and a threat to their goodwill. In such a case, poor credit history can be suicidal for a business in making efforts for a merchant account. The credit score and the credit history of the last 6 months are significant.

If a business had a merchant account with a PSP, this information is important. Also, if there are current merchant accounts with other PSPs, the merchant should inform the new payment processor about it. The new merchant account provider needs to ensure that the business has a good history with the previous payment processor. It also makes or breaks the goodwill of the gaming business in the market.

Every business owner from the gaming industry should know that it should not worry about account acceptance despite the high-risk factors. Denial of merchant account application is not always a reality. Today, with the help of advanced technology, both PSPs and acquiring banks have arrangements to secure online transactions. It helps high-risk industries survive safely and protect their customer’s financial benefits.

What does a gaming business get from a merchant account?

A gaming merchant account can help businesses in many ways, and this is what all gaming companies look for.

Business gets an acquiring bank – It is always complicated for a gaming business to get a merchant account. But the merchant account obtained through a PSP helps the companies reach the acquirers.

Fraud prevention – The merchant account service provider and acquirer need to secure the rights of its business clients. They have PCI-DSS, payment card industry data security standard compliant fraud detection tools. From data infringement to hacking, a business gets protection from every threat through a merchant account.

Convenient credit card processing – The merchant account gives the most significant benefit on payment processing. The transaction speed is better with such an account. The business can run conveniently without daily small and big payment issues.

PSP takes care of legal issues – Of course, the business owners can focus more on the customers as the PSP takes care of the legal implications. It is a special facility, as for any business, it can be challenging to take care of billions of dollars of the customers without a flaw in a law. But merchant accounts providers take care of all the legalities and make way for a smoother business operation.

Conclusion

With the help of technology, the world is changing fast, and risky affairs are not too tricky to handle anymore. The gaming industry may have some risk factors working against it. But thanks to the intelligent merchant account service providers that know how to nullify those risks. Are you in a search for a gaming merchant account? Amald can provide you with practical solutions. We have many clients in the same sector and have done well with them.