Hitting the Jackpot with a Casino and Online Gaming Merchant Account
- by IPayTotal Merchant Account Services
- 8 months ago
World’s two largest gaming regions, North America and the Asia Pacific, are estimated contain 78% of global revenues. Massively multiplayer online gaming (MMO), that can be played by hundreds even, thousands of players at a time, produced $19.9 billion in 2016. Although all signs indicate that online gaming and casinos are golden businesses, many classical financial institutions would not take the risk on them. The industry has a history of high chargeback ratios, and possible legal issues due to complex laws keeping banks away from these merchants.
To undertake credit card payments effectively and efficiently, enterprises required to turn to iPayToTal to attain a casino and online gaming merchant account. We specialize in providing high-risk merchant accounts for social gaming, MMO, and online casinos and so on. To initiate the process, apply online now. Once approved (within 24 hours), iPayToTal will set up chargeback management tools and also a payment gateway with fraud filters.
Merchant accounts for all kinds of online gambling and gaming businesses
iPayToTal provides merchant accounts to various kinds of the casino and online gaming sector which includes working with rejected, terminated by another processor, also with a bad credit track record which is as follows:
- Massively multiplayer online gaming
- Social gaming
- Horse race betting
- In-play gambling
- Online bingo
- Mobile gambling
- Mobile gaming
- Online Poker
What is required when applying for a casino and online gaming merchant account?
To attain a casino and online gaming merchant account, a business requires to fill a Pre-approval form. Besides that application and a secure, operational website, merchants also must have the following items handy to provide to processors and underwriters:
- A legitimate, government-issued ID, such as a driver’s license
- A bank letter or a pre-printed voided check
- 3 months of the most recent bank statements
- 3 months of the most recent processing statements, if applicable
- An SSN (Social Security Number) or EIN (Employer Identification Number)
- Chargeback ratios must be under 2%
Come up aces during casino and online gaming merchant account review
During the review, underwriters look at many reasons to assure credit card processors are not taking on any unnecessary risk exposure. Merchants that are perceived high risk means processors are taking on a higher probable financial burden. Factors that complete a business’ risk include:
- A track record of high chargeback ratios
- Bank statements
- Credit card processing history
- Credit scores
- Negative bank account balances
- Unpaid bills and late payments
The most suitable manner to prepare for the recheck is to have a principal in the business with a good credit track record apply for the account, pay any outstanding liabilities, and have low cash amount in the bank. Following these steps likely will enhance a business’ probabilities of getting a casino and online gaming merchant account approved with fewer obstruction, such as grips on higher processing volume or a lowering rolling reserve.
Reasons casino and online gaming merchants are so high risk
Online gaming and gambling are risky because the industry falls into a legal gray area. Though there are no federal regulations that prosecute online gamblers, the Unlawful Internet Gambling Enforcement Act of 2006 has stated: “no person or entity may knowingly accept any funds associated with a person participating in illegal online gambling”. This purports the law that a party could not “accept” funds, this has no real impact for an actual gambler. Since the law prohibits gambling merchants from legally receiving wire transfers, merchants require companies, like Ipaytotal.com, to process their credit card payments.
There are no regulations in the law which states players would be punished for gambling online or transferring amounts to pay for bets. Each state in the United States handles online gambling differently. Few states, like Delaware, have made lawful regulated online gambling, some have legalized it with conditions, for instance, Nevada, and others have outlawed that, just like Louisiana and Iowa. Iowa has the most strict online gambling laws on the books.
Also, many banks consider them way too risky. Casinos and online gaming businesses are likely to have excessive chargebacks and refunds and have a huge volume turnover. This increase the obligation of the processor which will incur when processing credit card payments for the business.
Also, online gambling gets a jolt with so many friendly frauds. This is when customers dispute a transaction because they changed their minds. Their credit cards weren’t stolen. They just decided they didn’t want to pay for the services. Due to laws in the United States, many online gambling businesses are based offshore, and there have been reports of money laundering and fraud. Since they are abroad, it is more difficult to keep track of the dollars, and therefore, increasing the risk to processors.
Many of the enterprises are new and have little or no experience and credit history. A lack of credit or poor credit enhances the probability that a business would not be able to pay back any of their debts to a bank or merchant account provider.
Processors lose when merchants don’t maintain good chargeback ratios
Processors have a accept it or leave its behavior when it comes to excessive chargebacks. Merchant account providers do not want to be held responsible for funds that casinos and online gaming businesses cannot cover.
Excessive chargebacks also could hurt the relationships that credit card processors have with their sponsor banks and credit card brands, like Visa or American Express. Credit organizations can fine credit card processors that exists to process purchases for businesses that have high chargebacks ratios. Any sales that credit card processors earn from the casino and online gaming merchant accounts are not sufficient for them to risk their relationships or any high fines.
Ways to cut down chargeback ratios
Chargebacks are expensive. Enterprises are gambling with their casino and online gaming merchant accounts if they do not implement ways to avert chargebacks.
Credit card processors can close the merchant accounts of businesses that have the excess of 3% chargeback ratios. Once they have been closed in the past by processors, it is very challenging for a merchant to get an approval for another time.
Merchants need to assure they are utilizing secure channels to eliminate abuse by customers. Details of every transaction should be recorded, stored, and smoothly retrieved when needed. Security methods should be taken to assure that the exact date and time of the transaction, also the IP address of the PC from which the purchase was done is called in case there is a controversy.
Besides this, sending an automated email receipt once a transaction is finished and/or a customer satisfaction survey are other smart moves to avert chargebacks. Letting customers understand that merchants require them to be pleased with their purchases can mean a lot to them and renders another opportunity to remind clients of purchases. In the situation of online gambling or gaming, it is a good way to bring them to a site to make another purchase.
Most of the times, poor customer service, an absence of transparency and communication, and a flawed business model are the reasons of excessive chargebacks. Rendering full refunds, communicating with patrons, and containing skilled customer service team are suitable ways to keep chargeback ratios below 2% and keep a merchant up and running.
A simple way to cut chargeback ratios by 25%
Whether chargebacks are won or lose, they hurt merchants. Hence, businesses that proactively work to eliminate chargebacks are establishing themselves up for failure and damaging their capabilities to conduct business. Merchants that do not keep ratios below 2% could have their casino and online gaming merchant accounts terminated by processors.
Casino and online gaming categories
The United States and other countries, including the United Kingdom, assigns four-digit numerical Standard Industrial Classification (SIC) codes to businesses, identifying their primary purposes. Casino and online gaming merchants exclusively fall into the 7999: Amusement and Recreation Service, Not Elsewhere Classified SIC code.
Federal statistical agencies categorize organizations using a list of six-digit numerical codes, which are called the Northern American Classification System (NAICS). The codes are utilized to pick, analyze, and publish statistical information about the same kinds of businesses and how they impact the economy in the U.S. Online gaming and casino merchants use the following NAICS codes:
- 713210 – Casinos (other than casino hotels)
- 713290 – Other Gambling Industries
- 713990 – All Other Amusement and Recreation Industries
Merchant Accounts For Casinos & Online Gaming
Stop playing the classical game with banks and classical merchant providers. Get a move ahead with a merchant account from Ipaytotal. We have the abilities to propose merchant accounts for casinos and gaming. This underestimates the necessity of having a high volume merchant account set up and ready for your gaming company. Apply today and we could have your casino and online gaming merchant account established in as little as 24 hours with limited application prohibitions.
Get Your Casino or Gaming Merchant Account set up in as little as 48 hours
Gambling may be the feature of high risk, high reward but provided the nature of this industry, banks back away. If your casino and gambling business can maintain a chargeback rate lower than 2% than Ipaytotal.com can provide you a merchant account that can be tailored for either your high ticket or your high volume need. Let the good moments roll in and apply today, we will set up your account within 72 hours.
- Zero Application Fees
- Competitive rates
- No VISA/MasterCard needed
- Various Secure Payment Gateway Options