If you want to run an online gambling platform, you’ll need a gambling merchant account. Payment processing for gaming is important to your business; without it, you cannot take deposits or make payouts. The online gaming industry is large, and it, like any other, includes bad actors. As a result, traditional banks are suspicious of those involved in the gaming industry.
Even though opening a gaming merchant account online is difficult, your chances of success are very good if you follow the guidelines, submit the required paperwork, and work through a seasoned corporate services provider. Working with an expert who is familiar with the field and can help you navigate the challenging application procedure is the key to success.
What exactly is a Gaming Merchant Account?
A gambling merchant account is a credit card processing account created exclusively for online gambling firms. Its job is to enable payouts and player rewards, as well as to take deposits and payments. It is typically connected to a payment processor that is integrated within the website or application.
What Makes a Gambling Merchant Account High-Risk?
Most banks consider gambling “high risk.” This is related to the causes we list below.
- The gaming industry is considered high risk because it presents a higher risk to the underwriter.
- While online gambling is now highly regulated and organised, some financial institutions continue to believe that certain threats exist. They will most likely become more knowledgeable about the industry and more trusting of online gambling providers over time.
- Casinos and online gambling businesses have high chargeback and refund rates, which raises the processor’s risk when processing credit card payments.
- When companies are unable to keep a low (less than 1% chargeback ratio), credit card processors routinely terminate merchant accounts for online gambling.
- Processors do not want to be held accountable for any balances that the gambling platform is unable to cover.
- Many gambling companies are based offshore, raising concerns about money laundering and fraud.
This does not rule out the possibility of obtaining online gambling payment processing. It is still possible to obtain legitimate payment processing accounts to serve your online gambling site.
What Is the Purpose of Gambling Payment Processing?
If you want to start an online gambling business, you’ll need online payment processing accounts. You will be unable to accept credit card payments or other popular online payment methods if you do not have them.
As a game provider, you must be able to handle credit cards and payments 24 hours a day, seven days a week. You must also be able to process these payments quickly and securely.
Payment Processing Requirements for Gambling
To open a merchant account for online gambling, no specific set of documentation is needed.The requirements will vary depending on a variety of factors. However, we can give you an idea of what will be required. As a starting point, you must provide the following:
These are needed in order to start a merchant account.Please keep in mind that additional documentation may be required on an individual basis:
- Fill out the application form
- Provide a copy of your Gaming Licence Company’s registration certificate.
- Articles of incorporation or an equivalent document
- Register of shareholders signed by the company’s director and dated within the last three months
- Good Standing Certificate
- The company’s director has signed and recently-dated the register of directors
- Certificate of occupancy or its equivalent
- Provide a forecast of transactions, including the expected number of transactions, average value per transaction, total volume, cardholders’ primary geographical locations, and processing history (if any)
Furthermore, any company’s Director(s), Officer(s), Shareholder(s), and Ultimate Beneficiary (ies) must provide the following documents:
- A copy of your passport has been certified. In some cases, the bank may ask that the document be apostilled by the country of origin.
- A certified copy of a utility bill containing the full name and full residential address as proof of residence (issued within the last 3 months). This includes bills for electricity, water, fixed phone lines, fixed internet, bank statements, and official government correspondence. Mobile phone or internet bills will not be accepted.
- A bank reference in the form of a letter on the bank’s official letterhead is also required. Typically, it includes information about the length of the banking relationship (which should be at least two years), the type of accounts held, and whether the account holder has been a good customer. This letter had to be sent within the last three months.
- A professional letter of reference (issued within the last 3 months) of a character nature from a lawyer or accountant who has been a client of the shareholder for at least 2 years. Account-holders may also provide a second bank reference from another financial institution.
- Curriculum Vitae (resume) updated and signed
Tips for Maintaining Your Gambling Merchant Account
There are several further measures you may take to keep the chargeback ratio on your gaming merchant account under 1%. Here are some of them:
- Make sure your descriptor is clear and that your clients understand it.
- If they don’t recognize the name, most users will refuse to pay.
- Keeping detailed records of all transactions and properly archiving them. This should include the date, time, and IP address of the computer used to make the payment, ensuring that an automatic receipt is sent once the transaction is complete.
- Customer satisfaction surveys are being conducted.
- When necessary, full refunds are provided (too many refunds can also get you in trouble)
- Using knowledgeable and skilled customer support or processing teams to communicate with customers.
How does Openup assist you in obtaining a merchant account?
You can increase the visibility of your online business on the Global Presence platform with the assistance of OpenUp’s merchant account consultants. We can open merchant accounts for both low-and high-risk industries because each business is unique.
We can assist you in obtaining competitive rates and improving your business cash flow through quick authorizations and secure services. You can keep customers happy with a frictionless checkout by providing a variety of payment options.
- Handheld Application Development
- Competitive Pricing
- Accept a Variety of Payment Methods
- PCI Compliant
- 24/7 Support
To know more about our solutions, kindly contact us,
+44 (800) 776-5193
firstname.lastname@example.org or visit us at https://openup.finance.