Gambling is naturally high-risk, which presents challenges for merchants looking to offer this service online.
Yet you can’t do much with this account because it receives all the payments customers make to your betting site. Regular merchant account providers will turn you down; your best remedy lies with a high risk merchant account provider experienced in serving the gambling business.
What a Merchant Account Does For You
Without it, you can’t process customer payments. The merchant account receives all customer card payments, holding them temporarily before transferring to your business bank account. They hold all the payments made via credit and debit cards.
Low-risk businesses qualify for regular merchant accounts, but a high-risk definition invites extra caution.
Why Gambling is Risky
Banks and underwriters consider businesses like gambling risky for several reasons. These are the most common reasons;
- Excessive chargebacks
- Too many refunds
- A high volume of transactions
- Big-dollar transactions
Other factors include federally restricted industries like e-cigs, no processing background, and whatnot.
How to Secure a High-risk Gambling Account
Securing a gambling merchant account isn’t an easy feat. But preparing upfront and adhering to merchant account terms can simplify the acquisition process. Following standard merchant account best practices also ensures you run your merchant account for as long as your business lives.
What Do You Need?
As you search for the right account provider, prepare the following documents to increase your qualification chances.
- Your gambling business license
- Your business’s registration certificate
- Certificate of Good Conduct
- Official company credentials, e.g., an M&A
- Official documents listing all company directors & shareholders
Underwriters may also ask for info such as your anticipated monthly transaction volume, the average transaction value, and data on customer whereabouts.
How to Maintain Your Gambling Merchant Account
Now you see it; now you don’t. High risk merchant accounts can be elusive. A slow refund process, a poor transaction record, and chargebacks can lead to instant termination and halt business operations.
Follow these tips to protect your merchant account and stay in business.
- Keep a low chargeback ratio.
- Keep detailed records of all transactions to win fraudulent chargebacks
- Give refunds in good time, in the same account
- Describe clearly what the service is in the transaction details
- Share a “payment confirmed” message for each deposit.
- Provide unswerving customer support
Acquiring and maintaining a gambling merchant account is easier said than done. To survive, you must understand your underwriter and service provider requirements. Follow this guide to secure one and run a successful gambling business.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest-rated high risk merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.