Fantasy Sports Merchant Account
You want to become a part of the multi-billion industry. But to start accepting payments from your players you need to open a merchant account. So, you search for a payment processor. If you own a small business, high fees won’t be acceptable for you. You are shook because most of the PSPs offer high rates. Or what’s worse – simply decline your application. The payment processor can say know, because they qualify your business as the high-risk one.
What are fantasy sports?
Fantasy sports refer to the online game where users build fantasy teams based on the real players. As the team is gathered the user chooses the fantasy league to participate in. Users can track players’ statistics in real-time. Media giants like Yahoo, CBS, and others are in the business and provide the fantasy platforms for players. The most popular sports to play are football, cricket, and baseball.
Why fantasy sports are considered a high-risk business
Fantasy sports representatives stay in the same row with the gambling ones. They will have relatively same reasons to come under the “high-risk” sign. These reasons are:
- Chargebacks. Fantasy sports can be addictive. Users become so involved in the process that can overspend. As soon as the user realizes how much one has spent you will receive a request for a chargeback. The user is likely to claim that the transaction was unauthorized.
- Fraud. Giving the high turnover volume and large number of transactions, this business type may become a haven for the money laundry. Moreover, the industry often falls victim to the credit card fraud.
What are the core needs of fantasy sports merchants
As a fantasy sport platform owner, you might want to have the following options to satisfy your customers’ needs.
- A choice of alternative payment methods + crypto. If on early stages of the fantasy sport development credit/debit cards alongside PayPal were the only option, now clients become more demanding. Make sure you provide a vast choice of alternative payment methods like ewallets, bank transfers, prepaid cards, etc.
- A selection of currency. As you open a fantasy merchant account, make sure you care for your customer’s comforts. The fantasy sport is truly international. The more currencies you offer the better. The PSP you choose to work with should have global solutions, that’s for sure.
- Smooth pay ins and payouts. Your client’s are going to pay to form and upgrade teams, so you need to ensure fast and secure payment process. Moreover, the same qualities are applicable to payouts, as every fantasy league has grand-prize and bonuses for customers.
- Fraud & chargeback prevention tools. As fantasy sports industry is prone to fraudulent activity, your payment processor has to have sophisticated fraud & chargeback prevention solutions.
In might seem hard to find one payment processor that will fit all you business needs. Nevertheless, there is one – and it is Ikajo International. Thanks to its own fraud & chargeback prevention software, all suspicious activity will be monitored. As Ikajo has a wide network of banks, you will receive the best possible fees and lower decline rate. So fare, Ikajo has a choice of 100+ currencies and 100+ payment methods (including alternative ones). Don’t miss an opportunity to grow you revenues and enlarge your global presence!
- PCI DSS Level 1
- Chargebacks & fraud prevention
- API and HPP integration
- Free recurring billing
- 100+ payment methods
- 60+ proven banks relationships
- Mobile banking
- 24/7 customer support