With constant internet growth and technological innovation, certain industries have begun to flourish. The online gaming universe is one example. Still, in its infancy, this phenomenon, known as iGaming, has grown into a multi-billion-dollar business. The digital gaming industry is booming with a growing appetite for online gaming in the world.
It is growing leaps and bounds as compared to the other industries. Not only are the global giants taking advantage of the plethora of innovative opportunities that this industry is bringing about, but the startup gaming developers have also benefited from it.
The global gaming market size was valued at USD 97.80 billion in 2016 and is expected to witness remarkable growth over the next eight years. Technological proliferation and innovation in both hardware and software are expected to be key factors driving the market. Growing penetration of Internet services across the globe, coupled with easy availability and access of games on the Internet, are also expected to keep growth prospects upbeat over the coming years.
WHY IS ONLINE GAMING CONSIDERED HIGH RISK ?
Have you tried to search “How to obtain a Gaming Merchant Account” or “Gambling Merchant Account” and came up short? You are not alone. Gaming is considered to be a high-risk industry by most of the acquiring banks and thus it’s very difficult to obtain an online gaming merchant account and payment gateway. Especially with online gaming, many small transactions are generated and can often be hit with a much higher percentage fee by the respective banks.
The gaming business merchants are called high-risk merchant accounts because of the following reasons:
The gaming business has a high volume turnover which is considered a risk factor by banks and merchant account providers who are giving them a credit line.
The gaming businesses are based offshore and there have been instances of money laundering and fraud making it a high-risk business.
The product offered by the gaming business is a high risk product as there is a potential for numerous chargebacks and refunds, increasing the liability the processor would likely incur when processing for the business.
The gaming business merchants may be relatively new in their fields and thus have no credit line, increasing the chances of insolvency and thus placing the bank/merchant account provider underwriting them at financial risk.
Though all signs show that online gaming and casinos are lucrative businesses, many traditional financial institutions won’t take a gamble on them. The industry’s background and history, high chargeback ratios, and potential legal issues due to ambiguous laws keep banks away from these merchants.
HOW DO I GET A HIGH RISK ONLINE GAMING MERCHANT ACCOUNT?
At iPayTotal, we offer dedicated support from a team with decades of experience in payment processing for online gaming. Our international network of banks / partners who are experts in online gaming merchant accounts and payment processing systems, provide you access to the most competitive rates and ensures you have resiliency in the business, operating across many different acquiring banks that can all be placed on our gateway without the need for individual integrations, saving time and money online gaming merchant account setup. We can also help reduce your foreign exchange exposure to further improve your profitability.
We know through our network which banks are offering the best current deals and can enable the merchant to obtain the very best market leading rates for a merchant account for online gaming. We build our merchant services around your unique business model, whether it’s one-click tokenization for fast, in-game payments, or recurring transactions for game subscriptions. Our partner gaming payment providers get you best in class online gaming merchant account rates.
Our experience with individual high risk industries allows us to identify potential avenues for fraud and payment disputes, then assist in sealing them before those setbacks occur. Instead of charging exorbitant rates, we fortify your business with the tools needed to combat those potential losses. With every high-risk merchant account we set up, we dedicate end-to-end support so 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 under a low rate guarantee.
WHAT’S NEEDED WHEN APPLYING FOR A CASINO AND ONLINE GAMING MERCHANT ACCOUNT ?
iPayTotal specializes in merchant accounts developed specifically for gaming and casino companies. To obtain an online gaming merchant account through iPayTotal, a business needs to fill our online application. In addition to the application and a secure, operational website, merchants also must have the following items handy to provide to processors and underwriters:
A valid, 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
Chargeback ratio must be under 2%
A SSN (Social Security Number) or EIN (Employer Identification Number)
Company Incorporation certificate
Customised Payment Solutions For Gaming Industry
Online gaming payment solutions have to be customized according to every merchant’s needs.
Online gaming operators face serious challenges when looking for reliable and cost-effective payment processing solutions. The preferences for payment methods and approaches differ depending on the location of the customer.
To succeed internationally, businesses need to optimize the payment process to match those preferences. However, the global payment landscape is complex and none more so than for gaming businesses. Not only do they need to understand each market and local preferences, but those payment methods also need to be able to facilitate a gaming transaction. This highly regulated business environment requires a payment service provider possess the know-how and experience to manage the risk and regulations associated with gaming traffic.
Sign up with an online gaming merchant account provider that understands your business type to get the resources you need to run a successful online gaming business. Our priority is for your company to achieve long-term viability and success with the help of industry-specific merchant services designed for growth. Social gaming, skill gaming, puzzles, simulations, sports, education, massively multiplayer online role-playing games and so many more—we partner with a variety of business types in this category and hone in on the specifics so we can provide the solution your company needs to thrive.
iPayTotal’s unique selling point is the firmly established belief that each client requires an individual approach. Each merchant collaborating with iPayTotal is assigned to a highly experienced personal account manager, intimately familiar with the nuances and particularities of different business sectors, who oversees the integration process and provides technical assistance. Close cooperation with the client allows the account manager to connect processing services most quickly, apply the relevant e-Commerce solutions and offer personalised advice.
Whatever type of gaming company you are, we make payments simple and help you increase player conversions and sales. We also enable the consumer to interact with the payments platform through the usual international card types (Visa, MasterCard, Amex et al), domestic card types as well as the ever-increasing number of alternative payment methods. Grow player numbers by simplifying payments. Offer your players the payment methods they know, use and trust worldwide.
You can offer the broadest range of payment methods through over 50 alternative payment solutions. We provide a conscious payment experience that suits whatever device your customers are using ensuring we help you maximize the income potential from each player. We also offer 179 currencies, giving you the opportunity to expand into new markets and reduce currency conversion rates quickly. Our feature-rich dedicated gaming solutions are sufficiently flexible and have been developed to deliver value and growth to your business. Accept credit and debit card payments securely and rapidly, process repeat and deferred payments, manage refunds, and pay out winnings into one easy to use and customisable platform. With regular releases and resilient infrastructure, you can rely on our platform and focus on what’s essential for your business; delivering the best possible experience to your customers.
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
ACH/Check 21 processing
Competitive processing rates.
Fraud prevention and protection
FACTORS AFFECTING ONLINE GAMING MERCHANT ACCOUNT FEE
Our online gambling merchant account fees are industry-competitive and affordable, and the application process is free – iPayTotal does not charge a merchant any fees until they begin processing transactions.
Once you have been pre-approved, our underwriting department will match your business with the acquiring banking partner we feel is the best fit for your needs. The bank will then process your application and determine your merchant account fees.
Especially with online gaming many small transactions are generated and can often be hit with a much higher percentage fee by the respective banks. However, we know through our network which banks are offering the best current deals and can enable the merchant to obtain the very best market leading rates.
Your fees are contingent on several factors, such as the merchant’s processing history, type of industry (high or low risk) and/or projected sales volume. Each online gambling merchant account is different, but typical fees include:
KEEPING GAMING MERCHANT ACCOUNTS IN GOOD STANDING
iPayTotal understands the unique needs of online gaming. Whether it’s online casinos, online gambling, online poker, social gaming or skill gaming, our experienced team intimately understands the challenges these businesses endure. Let the good times roll and apply today, we can have your merchant account set up in as little as 72 hours.
Our high risk payment processing expertise can help your legal gaming business acquire merchant accounts and protect those accounts from excessive fraud using proprietary transactional algorithms created to seek out potential chargeback threats before they happen.