There are a few businesses that would need to consider online gaming merchant accounts. These businesses include online casinos, mobile app based games and online slot machines. While these businesses may be considered high risk, they are still a valid business as long as they can find the right payment processing account.
Since these businesses are all associating with gambling they pose a high risk for a payment processor. In addition, there are a number of state based laws and regulations that a merchant account provider will have to abide by.
Rules and Regulations with Online Gaming Merchant Accounts
Because gambling isn’t legal in every state, there are a number of rules and regulations that need to be addressed and this is why these types of businesses are high risk. For starters, with the rise of mobile gambling it’s necessary that the person behind the phone is in a state where gambling is legal and geo-location technology is important to achieve that.
What Makes Online Gaming Businesses High Risk?
These types of businesses are high-risk partly due to their reputation. They also have a high rate of chargebacks and fraudulent activity. An online business can also result in a higher risk for consumer data theft. It is necessary to look at how long the business has been operating and, since it could be relatively easy to start up an online gaming company, there might not be a whole lot of history behind the business.
How the Right Merchant Account Will Save You Money
It’s necessary to work with your processor to lower the fraudulent transactions and add an extra layer of projection to your account in a system that won’t be a burden on your customers. This also helps save you money and make you money down the road. Without the proper provider, you will be spending more in fees and will probably have a higher rate and the more fraudulent activity you have will make getting an account even harder. A merchant processor that understands the high-risk industry will be your best bet.
The right merchant account will help streamline your online process and will offer you ecommerce options. You will want to work with a company that can offer you both domestic and off shore account options and then help you integrate this into your system. If you need your customers to be making larger payments, then it’s necessary to have an account with no limits on your transactions and a company that can manage the large number of transactions. Real time processing service is necessary if you have a high number of transactions as your customer base increases. Make sure you do your research so you work with a payment processor that will allow your business to make money and still meet all the regulations you need to.