Providers of casino payment services found their review of
risk. Within the online casino industry on the following things:
- Complicated Restrictions: Casino business is a decently restricted industry. It is
signifying merchant acquirers. And casino payment gateway providers must carry out various legal requirements. Basically, to deliver their
payment services to online betting and gaming companies.
- High Chargeback Ratio: Online casino websites often struggle to restrict the chargeback
ratio. In some cases, bettors may try to deny charges after having a loss in what is comprehended as a 'friendly scam'.
- Fraud and Money Laundering Risks: Money laundering, fraud, and identity theft are
all primary problems within the casino industry. And it can be typical for online casinos. Basically to conduct the essential Know Your
Customer (KYC) inspections. That merchant services providers need to proceed.
- High Transaction Volumes: High value of website visitors. And also online payments
make it hard for payment service providers to online observe all transactions for fraud.
As an outcome of these aspects. Most casino businesses find
it hard to get approval from online casino payment gateway providers.
Factors to Look In an Online Casino Payment Gateway
When searching for the best
online casino payment gateway. It's crucial to compare the
factors given by payment gateway providers. Along with the requirements of your online casino business.
The following factors are some of the most significant things
to study. So, when selecting an online casino payment gateway provider. You must look for the given factors to deal securely.
- Multiple Payment Methods: It is essential for your online casino website to get
various payment methods. Since you are restricted from taking online credit card transactions across the world. Most online casino
payment gateways make it attainable to receive payments by credit/debit card, cryptocurrency, digital wallets, and net banking. You should
also explore a casino payment gateway. That simplifies online transactions in a variety of currencies. If your online business serves
- Quick Transfers: Online casino websites require complete funding of the accounts
easily if they like to hold customers. Casino payment gateways with quicker payment processing times make it more suitable for your
online customers to bet. Also assuming that you don't fail out to rivals.
- Lower Fees: You should wisely select an online casino payment solution that makes
the most significant impact on your revenue and margins. You shouldn't avoid global payment service providers. As they may be able to
deliver competitive prices.
- Robust Security Level: Your casino platform must keep the trust and faith of your
customers. By keeping their funds and financial information secure. Most payment processors provide their payment solutions with systems.
That automatically sees and controls fraud. Also making it simple to reduce chargebacks.
All reputable payment gateway providers need online gambling
merchants. And to be correctly licensed for the region they function within.
This means that your online casino business will have to
present the correct certificates for licensing under the Gambling Association. So that you can get approval for a casino payment gateway.
Additionally, with licensing certification. You will also
continually be requiring to deliver the following documents.
- A complete online casino payment gateway application.
- Recent three months of bank statements.
- Last three to six months of statements showing payment processing history.
- Incorporation documents to prove the license of your casino business.
- Photo-ID to meet AML and KYC checks.
- Address proof.
- Operational website details.
Why cryptocurrencies are essential in an online casino payment gateway?
Online casino businesses are mainly exploring cryptocurrencies.
As they try to update their methods of online transactions.
Cryptocurrencies also arrive with various benefits that could
help your online casino business well, consisting of
- Zero Chargebacks: Crypto transactions cannot be varied or incomplete. And meaning that online
businesses may be able to avoid fraudulent chargebacks completely.
- A Strong Customer Base: An increasing number of online customers are buying, carrying, and
paying with cryptocurrencies. This means that online casino businesses that take them can interact and transact with a new group of tech-smart buyers.
- Fewer Transaction Fees: Crypto payments may mean fewer transaction fees. Then some standard
payment ways. Specifically, if funds are having straight to a firm's cryptocurrency wallet.
How to Get the Best Online Casino Payment Gateway?
We are experts in finding and successfully dealing with
payment gateway services. However, on the basis of online casinos and other gambling businesses.
Getting on our wide network of associations. Although, we
check with our customers with some of the market's most competitive payment gateway providers. We will suggest you a payment service after analyzing your business needs.
If you want to prefer online casino banking methods or
looking to get a casino payment gateway. You can contact PayCly for fair suggestions and exact quotations for the payment services. And
that will be suitable for your unique business requirements. You will also get proper help for your online casino business. Drop us a
mail or contact us. We will get in touch with you in a very short span.
What information must be provided when applying for an Online Casino Merchant Account?
To obtain a casino and online gaming merchant account, a
company must complete a Pre-approval form. Aside from the application and a secure, functional website, merchants must also have the following items on hand to provide to processors and underwriters:
- A valid, government-issued identification document, such as a driver's licence
- A voided check
- Three months of bank statements
- If applicable, three months of the most recent processing statements
- An SSN (Social Security Number) or EIN (Enterprise Identification Number) (Employer Identification Number)
- Chargeback ratios must be less than 2%.
Come up with aces during the review of Online Casinos Merchant Account
Underwriters examine a variety of factors during the review to ensure that credit card processors are not taking on unnecessary risk exposure. Merchants who are perceived as high risk imply that processors will bear a greater financial burden. The following factors contribute to the risk of a business:
- A history of high chargeback ratios
- Account statements
- History of credit card processing
- Credit ratings
- Bank account balances that are negative
- Late payments and unpaid bill
How to prepare your business to be eligible for getting a casino account?
The best way to prepare for the recheck is to have a business principal with a good credit track record apply for the account, pay any outstanding liabilities, and keep a small amount of cash in the bank. Following these steps will almost certainly increase a company's chances of getting a casino and online gaming merchant account approved with fewer obstacles, such as grips on higher processing volume or a lower rolling reserve.
Furthermore, many banks regard them as far too risky. Casinos and online gaming businesses are likely to have a large volume of chargebacks and refunds. This increases the processor's obligation when processing credit card payments for the business.
Also, with so many friendly frauds, online gambling gets a jerk. When a customer changes their mind about a purchase, they can file a dispute. Their credit cards had not been stolen. They simply decided not to pay for the services. Many online gambling businesses are based offshore due to US laws. And there have been reports of money laundering and fraud. Because they are located abroad, it is more difficult to keep track of the dollars, increasing the risk to processors.
Many of the businesses are new, with little or no experience or credit history. A lack of credit or poor credit increases the likelihood that a company will be unable to repay any of its debts to a bank or merchant account provider.
How does fraud impact online Casino?
Fraud significantly reduces online gambling profits and taints merchant reputations. High levels of fraud can even result in the closure of merchant accounts. Many online fraud cases involve third-party credit cards that have been compromised. When the unauthorized transaction is discovered, the third party files a chargeback. This results in a loss of transaction amount and chargeback fees for merchants.
Credit card networks, in general, monitor chargeback activity and require merchants with high fraud and chargeback rates to take steps to reduce the numbers. Merchants who do not comply lose their accounts and must deal with high-risk payment processors.
Furthermore, merchants with a high number of chargebacks and fraud cases face additional fines from card companies at both standard and excessive levels. High-risk merchants are automatically classified as 'excessive,' with higher fines and fees.
What merchants can do to protect themselves from fraud?
It is critical to prevent chargeback abuse and fraud by providing an excellent customer experience and authenticating users. Unfortunately, some friction in the customer experience is required to discourage fraud. However, excessive friction repels legitimate users.
Merchants must strike a balance between authentication and customer experience, distinguishing between negative and positive friction points.
Positive points of friction include:
- Requiring gamblers to verify their funds before depositing
- When adding a new card, the CVV is verified.
- New accounts must have unique and complex passwords.
- Backend fraud tools such as fraud engine scoring, IP verification, and geolocation are used.
- Verifying age and excluding underage users
Processors suffer when merchants fail to maintain low chargeback ratios.
- When it comes to excessive chargebacks, processors must either accept it or leave it. Merchant account providers do not want to be held liable for funds that casinos and online gaming companies are unable to cover.
- Excessive chargebacks may also harm credit card processors' relationships with their sponsor banks and credit card brands, such as Visa or American Express. Credit card processors that exist to process purchases for businesses with high chargeback ratios can be fined by credit organisations.
- Any sales that credit card processors make from casino and online gaming merchant accounts are insufficient to put their relationships at risk or expose them to high fines.
Methods for lowering chargeback ratios
- Chargebacks are costly. Businesses are gambling with their casino and online gaming merchant accounts if they do not implement chargeback prevention measures.
- Credit card processors can close merchant accounts for businesses with chargeback ratios greater than 3%. Once they have been closed by processors in the past, it is extremely difficult for a merchant to obtain approval for another time.
- Merchants must ensure that they are using secure channels to avoid customer abuse. Every transaction should have its details recorded, saved, and easily retrievable when needed. In the event of a dispute, security measures should be taken to ensure that the exact date and time of the transaction, as well as the IP address of the PC from which the purchase was made.
- Aside from that, sending an automated email receipt after a transaction is completed and/or conducting a customer satisfaction survey are both smart ways to avoid chargebacks. Allowing customers to understand that merchants want them to be happy with their purchases can mean a lot to them and provides another opportunity to remind customers of purchases. It is a good way to bring them to a site to make another purchase in the case of online gambling or gaming.
- Excessive chargebacks are frequently caused by poor customer service, a lack of transparency and communication, and a flawed business model. Making full refunds, communicating with customers, and having a skilled customer service team are all effective ways to keep chargeback ratios under 2% and a merchant running smoothly.
A simple method for reducing chargeback ratios by 25%
Chargebacks, whether won or lost, hurt merchants. As a result, businesses that actively work to eliminate chargebacks set themselves up for failure and jeopardise their ability to conduct business. Merchants whose ratios exceed 2% may have their casino and online gaming merchant accounts terminated by processors.