If you intend to run an online gaming platform, you will require a gaming merchant account. Payment processing is critical to your gaming operations; without it, you will be unable to accept deposits or issue payouts. The online gaming industry is enormous, and like other industries, it is rife with unscrupulous operators. As a result, traditional banks are wary of anyone engaging in the casino business.
Obtaining an online gaming merchant account is not straightforward, but by adhering to the regulations and submitting the necessary paperwork and information, as well as working with an experienced corporate services provider, your chances of approval are extremely high. The key to success is working with an industry expert who can guide you through the difficult application process.
Paypound has collaborated with a plethora of gaming businesses from around the world. We have assisted them in opening merchant accounts for gambling enterprises in a variety of offshore countries, and our success record is extremely high.
We will examine the process, complications, and difficulties associated with opening a gaming merchant account in this part.
What is a Merchant Account for Gaming?
A gaming merchant account is a type of credit card processing account that is tailored to the needs of online gaming businesses. Its goal is to receive deposits and payments and simplify payouts and the distribution of player rewards. It is often integrated with a payment processor through which the website and/or application may be paid.
Gaming payment processing is considered a high-risk activity for a variety of reasons that we shall address later in this essay. Paypound, on the other hand, has over 23 years of experience assisting online gambling businesses in obtaining the required accounts to connect to their gaming platforms.
Why is a Gaming Merchant Account a High-Risk Account?
The majority of banks classify gaming enterprises as “high risk.” This is for a variety of reasons, which we will detail below.
1. Because the gambling industry is deemed to provide a greater risk to the underwriter, it is classified as high risk.
2. While internet gaming is highly regulated and organised nowadays, several financial institutions continue to believe that certain hazards remain. They will almost certainly become more knowledgeable about the sector and more trusting of online gaming suppliers over time.
3. Casinos and online gambling firms have a high rate of chargebacks and refunds, which increases the processor’s risk while processing credit card payments.
4. They also have a greater turnover rate, which puts processors at danger.
5. Credit card processors frequently terminate online gambling merchant accounts when businesses are unable to maintain a low chargeback percentage (less than 1%). Processors do not want to be held liable for any balances not covered by the gaming platform.
6. Many gambling enterprises are located offshore, raising money laundering and fraud worries.
This is not to say that obtaining payment processing for online gaming is impossible. There is still a way to obtain legitimate payment processing accounts to facilitate the operation of your online gaming website. Contact us today to learn more.
Why Do I Need Payment Processing for Gaming?
You will require online payment processing accounts if you are establishing an online gaming business. Without them, you will be unable to accept credit card payments or other commonly used online payment methods.
As a gaming provider, you must be able to accept credit cards and other forms of payment from all over the world 24 hours a day. Additionally, you must be able to safely and effectively process these payments.
Paypound can assist you in opening a merchant account for online gaming that will cover all types of gambling, including:
• Sports wagering
• Casino online
• Poker online
• In-Play Betting
• Lottery online
• Table Games in Real-Time
• Bingo Online
• Games of Imagination
• A variety of chance games.
How Much Does it Cost?
There is no fee to apply for a gaming merchant account; however, a minimum processing volume of 100.000 euros is required to apply for a gaming merchant account via Paypound.
If your application is accepted, you will be charged for set up or activation. Additionally, you’ll receive a comprehensive pricing schedule for each transaction. This price schedule is available on a case-by-case basis and is determined by your customers’ volume, geographic area, average transaction size, and other considerations.
Paypound takes pride in offering industry-competitive, transparent, and fair pricing for our process support. Contact us today to schedule a complimentary 30-minute consultation to discuss your objectives, company requirements and to assuage any uncertainties.
Requirements for Gaming Payment Processing
There is no formal list of documents required to open a merchant account for online gaming. The criteria will vary according to on a variety of factors. However, we can provide you with an estimate of what will be required. To begin, you will need to provide the following:
These are the prerequisites for establishing a merchant account. Please keep in mind that, on a case-by-case basis, further paperwork may be required:
• Fill out the application form completely.
• You must submit a copy of your gaming licence.
• Company registration certificate
• Articles of incorporation or an analogous document
• A shareholder register dated within the last three months and signed by the company’s director
• Affiliation Certificate
• A register of directors signed by the company’s director and dated within the last three months
• Incumbency certificate or similar
• Provide a forecast of transactions, including the anticipated number of transactions, the average transaction value, the total volume, the cardholders’ primary geographical areas, and processing history (if any)
Additionally, the following documents must be provided by any Director(s), Officer(s), Shareholder(s), and Ultimate Beneficiary(ies) of the company:
• A notarized duplicate of your passport. In some instances, the bank may require that the document be authenticated by the nation of origin.
• A certified copy of a utility bill containing the entire name and full residential address as evidence of residence (issued within the last 3 months). This category contains bills for power, water, fixed phone lines, and fixed internet, as well as bank statements and formal government correspondence. Bills for mobile phones or mobile internet service will not be accepted.
• A bank reference, in the form of a letter on the bank’s official letterhead, is also necessary. Typically, it comprises information about the duration of the banking relationship (which should be at least two years), the type of accounts held, and if the account holder has been a creditworthy customer. Within the last three months, this letter must have been issued.
• A professional letter of reference of a character kind (issued within the last three months) from a lawyer or accountant with whom the shareholder has been a client for at least two years. Additionally, account holders may offer a second bank reference from another institution.
• A current Curriculum Vitae (resume) that has been duly signed
How to Maintain a Gaming Merchant Account
There are a few additional steps you can take to maintain your gaming merchant account’s chargeback ratio under 1%. They include the following:
• Ensure that your description is clear and understood by your clients. The majority of customers will decline to pay a price if they do not recognise the name.
• Keeping track of and properly preserving all transactions. This should include the date and time of the payment, as well as the IP address of the computer from which it was made.
• Ensuring that an automatic receipt is delivered following the completion of a transaction
• Conducting surveys of consumer satisfaction
• When necessary, providing full reimbursements (too many refunds can also get you in trouble)
• Communicating with customers through the use of an experienced and educated customer support or processing staff
How Can Paypound Assist Me?
Paypound has been involved in the online gaming industry from the industry’s inception. We’ve accumulated a plethora of hands-on expertise and understanding in corporate services, online gaming, licencing, and client bank account opening throughout that period. As an online gambling operator, entrusting us to assist you in obtaining a merchant account is a wise decision. We’ve created decades-long partnerships with processors, which we’ve strengthened via our dedication to honesty and transparency. Contact us today to learn more about starting an online gaming merchant account!