Online Gaming Merchant Accounts
Technology and the internet have taken a toll on the rapid growth and development of online gaming experience. Specific niche gaming genres have thrived with additional graphics and innovative ideas.
Even though online gaming is comparatively a new industry, but it has grown by leaps and bound to become a multi-billion dollar industry at this age rapidly.
Some of the most noteworthy types of online gaming are mobile gaming, horse race betting, social gaming, raffles, casinos, pool, prize draws, online sportsbook, online auctions, online lotteries, etc. And as per the reports of fantasy sports, it has over sixteen million participants.
Online gaming is considered to be as one of the high-risk merchant accounts by the banks because of specific reasons:
- Excessive chargebacks: With the increasing rates of a chargeback due to the disputes made by users during transactions, regardless of the reasons, it will be the gaming merchant account that will suffer. The excessive chargeback cases result in the decrease of credit score of the merchant account, and then it can also result to complete freeze or shut down of the merchant account.
- High volume turnover: The high volume turnover or return item chargeback is a significant factor considered by the banks for online gaming merchant accounts. The majority of banks generally consider them for the high-risk credit card processing and transactions.
- Being an intangible product increases the possibility of high return item chargeback as well as refunds. The chargeback rate somehow might become fateful for business success.
- Money laundering: Gaming industries are generally based on an offshore merchant account. Many cases of document fraud have been noticed, which definitely raises the concerns of the banks.
- No processing history: Not having a processing history because of the rapid growth and increasing number of new merchants in the industry. Even after having new funds for the set -up, they still face refusals for the banks because of the no processing history reason is common. Therefore, these industries are considered having a high- risk merchant account.
The most necessary documents to open an online gaming merchant account are:
- Incorporation certificate.
- Incumbency certificate.
- Valid document proof mostly passport bearers with the visible signatures of the company officers and owners.
- A written application.
For opening a merchant account for online gaming, the requirements are:
- Privacy page for policy.
- A page for terms and conditions.
- The company name in the footer.
- A button is providing email id and phone number for customer support.
- The logos for Visa and Mastercard.
It is advised for high-risk online gaming businesses to open an online gaming merchant account with the help of a reputed and trusted high-risk payment processor. This will help in removing all unnecessary risks like excess chargebacks.
It is also advised to online gaming merchant to not open an account if there are things like debt or due payments, low credit scores, etc. And it is better to have enough amounts of liquid assets or savings in hand before a merchant decides to apply for opening a merchant account.