Gambling Merchant Account
The global turnover of the online gambling market exceeded $38 billion in 2018. No wonder that the growing number of merchants are willing to get in. The desire to grow rich, though, is not enough. From smart recurring to local payment methods, there are nuances you don’t want to miss. Continue reading to learn gambling business tips as well as how to open a gambling merchant account.
What is gambling
All the gambling types can be differentiated as either game of pure chance, or those combining skills and luck.
The most popular types of gambling in 2019 are:
- Gaming Machines/Pokies
- Online casino
- Sports betting.
According to Newzoo research, the online gambling industry will keep increasing by 8% annually.
Why gambling is considered high-risk business
Running a gambling business is riskier than selling clothing or cosmetics for several reasons:
- High volume turnover. High volume turnover is considered a risk factor by both banks and merchant accounts. When the gambling company goes bankrupt,
- Money laundering. Gaming businesses are often based offshore. It also has a poor reputation for previous cases of money laundering and fraud.
- A high rate of chargebacks. The numerous chargebacks and refunds are common for gambling. From gambler’s despair to identity theft, there are tons of reasons that cause cancellation. That, in turn, leads to chargebacks ranking gambling among the riskiest businesses possible.
What are the core needs of gambling merchants
- Pay-ins and Payouts. Regular and hassle-free pay-ins and payouts for both merchants and gamblers is the key to success.
- Different payment methods. Gambling merchants should provide a wide range of payment methods for both small and big transactions. Besides basic payment methods like Visa, MasterCard, Discover, and American Express, there are local payment methods that vary from country to country. Keep that in mind, when targeting a market of a specific country.
- Prepaid cards. That is a crucial point for gambling business success. Prepaid cards, especially reloadable ones, allow gamblers to pay and receive money without a bank account.
- Recurring billing. The majority of gambling merchants offer a subscription payment model. That means the funds are automatically charged from the gambler’s accounts without a second agreement. The best option is to provide a smart recurring billing. It allows making a partial withdrawal from the client’s account if he doesn’t have enough funds, etc.
- Integration with the biggest payment platforms. Playtech and Microgaming are the two biggest gambling platforms hosting thousands of online slots. The more of them you can integrate, the better.
Ikajo International provides payment processing services since early 2004. During that time, our team has created payment solutions for a wide range of gambling businesses. It is possible, thanks to our experience and a vast number of acquiring banks all over the globe. Contact us today to get the best fitting solution!
- Payment solutions for all the gambling types;
- Wide range of payment methods;
- Local payment methods;
- API and HPP integration
- Free recurring billing
- PCI DSS Level 1
- Chargebacks & fraud prevention
- 60+ proven banks relationships
- 100+ payment methods
- Mobile banking
- 24/7 customer support