GROWTH OF THE ONLINE GAMING INDUSTRY￼
Certain sectors have begun to prosper as a result of internet expansion and technological advancement. The realm of online gaming is one example. This phenomenon, known as iGaming, has evolved into a multibillion-dollar industry while still being in its infancy. The digital gaming business is thriving as the global demand for online gaming increases.
Compared to other industries, it is expanding at an exponential rate. Not only are global giants capitalising on the sector’s multitude of new options, but so are startups in the gaming business.
In 2020, the value of the global gaming market was estimated at USD 3 trillion, and the industry is anticipated to have rapid expansion over the following eight years. The proliferation of technology and innovation in both hardware and software are anticipated to be important industry drivers. In addition, the increasing global adoption of Internet services and the simple availability and accessibility of online games are anticipated to keep development prospects positive in the future years.
Massive amounts of income are made by online gaming sites. Multiple massively multiplayer online games that link hundreds to thousands of users at once enjoy a high level of popularity.
The majority of business owners anticipate leveraging this enormous opportunity given by the expansion of internet video gaming to advance their respective businesses. Entrepreneurship is all about taking risks on market trends, and the ideal place for firms to prosper appears to be online gaming. The constant introduction of new games, technology, and services contributes to the market’s rising competitiveness and profitability. In order to maximise their utilisation of this expanding market, many business owners have reached out to high-risk merchant account providers for assistance in enhancing their payment performance.
WHY IS ONLINE GAMBLING VIEWED AS HIGH-RISK?
Have you unsuccessfully searched for “How to Obtain a Gaming Merchant Account” or “Gambling Merchant Account”? You are not alone. Most acquiring banks view gambling as a high-risk sector, making it extremely difficult to establish an online gaming merchant account and payment gateway. Especially with online gambling, several little transactions are produced, and the corresponding banks frequently charge a significantly larger percentage fee.
They are considered too risky by financial institutions
Online gaming and gambling is a game of luck plagued with several uncertainties which the banks are not ready to lose to. These businesses are prone to excessive chargebacks and refunds and may experience a higher volume turnover. The market is just unpredictable.
The business falls into the legal gray areas:
There are several laws prohibiting unlawful online gambling. It is unacceptable in some parts of the world. Since the law prevents gamblers from accepting wire transfers, they may require to process credit card payments for all their transactions.
It is plagued by several fraudulent activities
Online gambling is plagued with several fraudulent activities which make it unsafe for investment. There are always cases of friendly fraud when a customer disputes a transaction because they have changed their minds.
Most gambling games are based offshore:
Keeping a tab on the activities of online gaming platforms is quite impossible since they operate outside the country.
High-risk merchant accounts refer to the merchants in the gambling industry for the following reasons:
The gaming industry has a large volume turnover, which banks and merchant account providers consider a risk element when extending them a credit line.
The offshore location of the gambling companies, together with incidents of money laundering and fraud, makes it a high-risk industry.
The product offered by the casino operator is high-risk due to the possibility of multiple chargebacks and refunds, hence increasing the liability the processor would likely suffer while processing for the company.
The merchants in the gaming industry may be relatively new to their industries and lack a credit line, increasing the likelihood of insolvency and placing the bank/merchant account provider at financial risk.
Even though all indications indicate that online gambling and casinos are profitable companies, many conventional financial institutions are unwilling to take a chance on them. The origins and history of the sector, high chargeback percentages, and potential legal concerns resulting from confusing legislation discourage banks from working with these merchants.
HOW DO I OBTAIN AN ONLINE HIGH-RISK GAMING MERCHANT ACCOUNT?
At OpenUp, we provide devoted assistance from a team with decades of expertise in online gaming payment processing. Our international network of banks/partners who are experts in online gaming merchant accounts and payment processing systems provides you with access to the most competitive rates and ensures that your business is resilient, operating across many different acquiring banks that can all be placed on our gateway without the need for individual integrations, thereby saving you time and money on the setup of an online gaming merchant account. We can also assist you in reducing your exchange risk to increase your profits.
Through our network, we are aware of which banks are currently giving the greatest prices and can help the merchant secure the most competitive market rates for an online gaming merchant account. We tailor our merchant services to your specific business model, whether it is tokenization with a single click for instant in-game purchases or recurring transactions for game subscriptions. Our affiliated casino payment providers provide the most competitive online gaming merchant account rates in the industry.
Our familiarity with distinct high-risk businesses enables us to detect possible outlets for fraud and payment disputes, and then aid in securing them prior to the occurrence of such problems. Instead of charging expensive fees, we equip your firm with the necessary resources to battle possible losses. With every high-risk merchant account that we set up, we provide end-to-end support to ensure that your online payment gateway is equipped with advanced fraud detection filters and thresholds, chargeback prevention features, and seamless integration with your shopping cart and other software, all at a guaranteed low rate.
What do I need to create a casino and online gaming merchant account?
Creating an approved online gaming merchant account requires a high level of preparation from the high-risk merchant owner. Depending on the needs of your online gaming merchant account provider, when creating an online gaming and casino merchant account, it is important that you have the following documents ready.
- Most recent bank statement not later than 3 months.
- Most processing statements are not later than 3 months (if applicable).
- A pre-printed voided check
- or a bank letter.
- An EIN (Employer Identification Number) or SSN (Social Security Number)
- A valid, government-issued Identity Card such as a driver’s license
- Chargeback ratios must be under 2%
You may be required to fill out an online application form to facilitate your online gaming merchant account instant approval. The procedure for doing this is quite simple and can be carried out by almost everyone who can read and write. In addition to the online application and a secure, operational website, merchants also must have the following items ready
- A history of high chargeback (credit card transaction disputes) ratios
- Bank statements
- Credit card processing history
- Credit scores
- Negative bank account balances
- Unpaid bills and late payments
Once the right documents are provided, your account will be approved within the next 24 hours to 48 hours. These documents are often required by service providers and underwriters to ascertain the genuineness of the business undertaken by online gaming platforms applying for an instant online merchant account approval. Most often, these account providers may carry out some reviews to determine the factors which ensure credit card processors are not taking any unnecessary risks. Merchants who are considered to be high risk tend to serve a greater financial burden than others.
Customized Payment Options For The Gaming Sector
Payment options for online gaming must be tailored to the demands of each individual merchant.
When seeking dependable and cost-effective payment processing solutions, online gambling businesses encounter significant obstacles. The preferences for payment methods and techniques vary based on the customer’s location.
To achieve success on a global scale, firms must improve their payment procedures to accommodate local preferences. However, the worldwide payment landscape is complicated, and for gaming enterprises in particular. In addition to understanding each market and local preferences, payment mechanisms must also be able to allow gaming transactions. A payment service provider must have the knowledge and skills to handle the risk and regulations connected with gaming traffic in this highly regulated business environment.
Sign up with a merchant account provider for online gaming that knows your company type in order to obtain the tools necessary to run a successful online gaming business. With the aid of industry-specific merchant services tailored for expansion, our top objective is for your firm to achieve long-term viability and success. Social gaming, skill gaming, puzzles, simulations, sports, education, massively multiplayer online role-playing games, and so much more—we collaborate with a variety of business types in this area and zoom in on the particulars so we can deliver the answer to your business requires to grow.
The unique selling proposition of OpenUp is the concept that each client demands an individualised approach. Each merchant partnering with OpenUp is assigned a highly experienced personal account manager who monitors the integration process and offers technical support. This account manager is well versed in the subtleties and peculiarities of various business sectors. Close collaboration with the customer enables the account manager to immediately link processing services, implement pertinent e-commerce solutions, and provide customised advice.
We simplify payments for every type of gaming firm and help you improve player conversions and revenues. In addition, we enable the customer to connect with the payments platform via the standard international card kinds (Visa, MasterCard, American Express, etc.), domestic card types, and the growing number of alternative payment options. Increase player count by streamlining payment methods. Provide your gamers with the payment options they recognise, use, and trust globally.
HOW TO CHOOSE THE RIGHT PAYMENT METHODS
To get an online merchant account instant approval, most merchants are advised to get in touch with the online gaming merchant account bank of their choice and file in their applications. Most of the merchant account for casino and online gaming gets approved 24 hours after a successful implementation. After approval, you can set up your online gaming merchant account by setting the chargeback tools, and payment gateways. You can also set up a fraud filter for all your online payments.
Choosing the right payment methods will be strictly based on the following criteria:
- Geography: This has to deal with the location of the payment methods and their accessibility. To meet your target audience, you will need to ensure that you have all the relevant local and international systems in place.
- Timing: Business is all about timing. Some payment methods such as mobile carrier billing or e-Wallets can offer instant deposits whereas virtual banking in cryptocurrencies may take up to several days before it reflects. Always ensure your set of payment instruments suits your business models.
- Security: Fraudulent activities can lead to huge financial losses. Always identify the potential risks of particular payment systems to negate them before they even arise.
- Value: After maintaining a diversified global payment landscape, the price is the next important payment instrument. Always settle for the best options in terms of price/relevance and make sure to account for the costs of integration and the IT expertise required.
- Relevance: Determine the level of importance of your payment method in your region before engaging it. There are instances where even the most popular payment methods may not be relevant to your model or industry. Know the requirements of your target audience and pattern your payment options and portfolio accordingly.
Through more than 50 alternative payment alternatives, you may provide the largest selection of payment ways. We deliver a payment experience that is considerate of the device your consumers are using, allowing you to optimise the revenue potential of each player. In addition, we provide 179 different currencies, allowing you to swiftly enter new markets and decrease currency conversion charges. Our feature-rich, scalable, and adaptable dedicated gaming solutions have been designed to contribute to the expansion of your business. Accept credit and debit card payments in a safe and expedient manner, process repeat and postponed payments, handle refunds, and distribute wins on a platform that is simple to use and customizable. With frequent updates and robust infrastructure, you can rely on our platform and concentrate on delivering the best possible client experience for your business.
ACCEPTED GAMING SECTORS
We welcome applications from online Gaming businesses, including the following sectors:
- Prize Draws or Similar
- Internet Sports Books
- Reverse & Penny Auctions
- Small Lottery Syndicates
- Internet Sports Books
SOME OF THE FEATURES OF YOUR ONLINE GAMING MERCHANT INCLUDE
- Multi-bank processing (including off-shore)
- Secure payment gateway
- Chargeback alerts
- Chargeback disputes
- ACH/Check 21 processing
- Competitive processing rates.
Fraud prevention and protection
Once your firm has been pre-approved, our underwriting department will match it with the acquiring banking partner that best meets its needs. The bank will next evaluate your application and establish the fees associated with your merchant account.
Especially with online gambling, several little transactions are produced, and the corresponding banks frequently charge a significantly larger percentage fee. However, through our network, we are aware of which banks provide the greatest current prices and can help the business achieve the most competitive market rates.
Your costs depend on a number of variables, including the merchant’s processing history, the kind of industry (high or low risk), and/or the anticipated sales volume. Each online gambling merchant account is unique, however, common fees include the following:
KEEPING GAMING MERCHANT ACCOUNTS IN GOOD STANDING
OpenUp comprehends the specific requirements of online gaming. Whether it’s online casinos, online gambling, online poker, social gaming, or skill gaming, our knowledgeable staff is intimately familiar with the difficulties these businesses face. Let the good times roll and apply now; we can set up your merchant account within 72 hours.
Our experience in high-risk payment processing may assist your legal gaming firm in acquiring merchant accounts and protecting those accounts from excessive fraud by utilising transactional algorithms designed to anticipate potential chargeback risks.