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Why is A High-Risk Merchant Account Necessary for your Gaming Business?

The online gaming industry has a strong earning potential for merchants. Online gaming companies were making huge profits when all other businesses faced a massive downfall in the last three years due to the pandemic. People locked inside their doors were spending too much time gaming.

Several statistical highlights on the gaming industry -

  • In 2020, the gaming business grew from 23% to 30% during the lockdown.
  • In 2021, the market value was USD 198.40 billion.
  • By 2027, the global gaming market may reach USD 339.95 billion by 2027 with a CAGR of 8.94% during 2022-2027.

During the pandemic, there were not only more players than in prior years but also more game watchers. People watched the popular games to see how others were playing. Isn't that a miracle? However, it was somewhere evident that in the digitized era, online content and gaming platforms are the prime sources of entertainment. This growth may not be visible in the coming years, though, but the industry is only moving towards progress. It is the reason that the merchants are hopeful of earning more in the coming years.

To run the gaming businesses efficiently and for several other reasons, the merchants need a high-risk merchant account. Let us take a look at them.

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1) High volume turnover

Did you know? The expected size of the global gaming industry is $222 billion. Gaming businesses always have a high-volume turnover on a monthly and annual basis. Conventional banks and financial institutions cannot provide a business account for daily transactions. High volume transaction processing is not in the capacity of traditional banks. Thus the merchants need a high-risk gaming merchant account from a bank that serves such businesses.

No high-risk and high-volume turnover business can operate without a merchant account, which means this business account is the backbone of such companies. Due to the massive amount of turnover, businesses need high-risk merchant processing because for processing as well, conventional financial institutions cannot help. It is not part of the law for a traditional bank to process or receive payments for a high-volume business.

2) Money laundering is a ubiquitous risk

A merchant account has a robust system compliant with PCI-DSS standards, which helps merchants prevent money laundering. However, still, the issue is big, but the acquiring banks today have innovative artificial intelligence tools to detect suspicious activities. The gaming industry has always been vulnerable to money laundering. The gaming industry's lack of regulations and control makes merchants prone to laundering. Fraudsters look for similar weaknesses to intrude into the network. Some gaming merchants also give a player the facility to hide his identity, and hackers use it as a tool for identity theft. Another threat arises due to the use of convertible and non-convertible currency is also a big concern.

Convertible currency is the one that can be sold and purchased in the foreign exchange market. Non-convertible currency cannot be traded in the Forex market; for example, the Brazilian real and Chilean peso is regarded as non-convertible currency. Another way laundering happens is that the hackers steal credit card information, log in without two-factor authentication, and use the data to buy in-app money. They may use the purchased money or game materials to sell online at a lower price. Thanks to the regulated payment industry help a lot in the prevention of laundering. The gaming merchant accounts and the high-risk payment gateway providers for the industry keep their network strong to spot illegal activities.

3) Intangible product has more chargeback risks

Gaming is an intangible product, and there are more chances of refunds and chargebacks. Friendly fraud, which is a popular type of chargeback, happens quite quickly with merchants. A Gaming Payment Gateway helps business owners fight against false claims of money-back demands. Today, businesses practice transparency to win the customer's trust, which can also be used to protect the merchant's rights.

Here is an example: Sometimes, gaming players raise a chargeback demand because they cannot recognize why they made a payment in the bank statement. However, the money was debited from a player's account because he must have subscribed to a gaming service. But due to a lack of information about the transaction, a customer demands money back. Tools like email invoice descriptors help business owners prove that they have always mentioned the product and company name for which the customer made a payment. These descriptors have the company name, the amount paid and the product name mentioned in the invoice. This feature makes the merchant strong against any false claim of chargeback.


The significance of a high-risk merchant account for a gaming business is clear, and the above points prove them with facts and logic. The gaming industry is a spot of controversies and financial fraud issues. However, there is no doubt that with innovative merchant account solutions, business owners today operate company operations confidently. If you are also looking for fearless business operations, contact paycly.com to create a predictable and flourishing atmosphere.