Payment systems for the gambling industry might function the way their counterparts do but require a special merchant account along with special treatment of this account. This Maxpay article explores high-risk merchant services, the nature of merchant accounts for betting and casino enterprises, and where to find the most reliable providers for them.
What is a merchant account?
A merchant account is a type of bank account that allows entrepreneurs to receive e-payments via methods like cards, Apple Pay, Google Pay, direct debit, and so on. Merchant accounts are essential in accepting electronic purchases both for retail businesses via the point-of-sale terminals, and on the eCommerce platforms online.
Thanks to it, a company takes part in online payment processing. If you have questions about payment processing and how it works, we recommend you follow this link.
Types of merchant accounts
Merchant accounts can be divided by the type of business they are issued for, such as low-risk or high-risk businesses. A high-risk business is called so because it can potentially generate more chargebacks. But not only because of that. For instance, operating within specific countries and using certain currencies can make a company fall under this category.
Also, there is a list of business categories that in any way would be labeled high-risk. Any subscription-based services, social networks, travel business, gaming, and more do belong there. Thus, the gambling industry that includes batting, casino, online poker, and others is in this category. It does require issuing a high-risk merchant account that, without an option, means higher charges, more documentation, and special financial treatment.
What are merchant services?
These are tools required for enabling the payment process. High-risk merchant services usually include:
- issuing the merchant account and multiple merchant IDs;
- implementing payment gateway and payment processing on the website,
- protecting from fraud,
- safe proofing from chargebacks.
Among all the mentioned high-risk merchant services, multiple merchant identification numbers are especially valuable for gambling business, betting, and casino. MID is responsible for accepting payments and processing transactions.
The gambling industry is unfortunately prone to frequent chargebacks resulting in account termination. Getting multiple merchant IDs can save the day as while one ID is not available during the process, another catches on it, so no income is lost for the company!
The best option for the gambling business
The best option for casino and betting businesses is to open a high-risk account. They may need other high-risk merchant services as well. It would allow securely and legally get money for their services on the website and protect the company from scammers.
Another option would be to collect payments without having a merchant account, but it can be tricky: less secure and will attract scammers. We would not recommend this option, honestly.
How to open a high-risk merchant account for a gambling business?
Our advice is to search for a reliable provider that works with companies of your kind, gambling industries. It is a crucial factor, as those financial entities that have not yet worked with casinos and betting services might not be completely aware of how to operate in those fields both instrumentally and legally. And we can recommend Maxpay.
Maxpay opens high-risk accounts and multiple merchant IDs; it establishes the full payment cycle on the website and provides a personal customer support manager that follows the project from the beginning. Also, the provider is experienced in partnering with gambling industries and offering the best fraud protection and chargeback alert measures.
Besides, we are secure! We follow all the major regulations globally, such as General Data Protection Regulation, Payment Card Industry Data Security Standard, and Second Payment Services Directive. Maxpay offers services within the UK, USA, and European Union, including Sweden.
How do I get a high-risk merchant account?
You should find a provider that issues high-risk accounts. We recommend checking Maxpay. Maxpay supplies a high-risk merchant with all the needed services for the payment system to function well.
What are the types of merchant accounts?
Simply put, there are two: account for low-risk businesses, and account for high-risk ones. The difference is quite significant. High-risk accounts are usually charged with more fees and require more complex processes of issuing.
Can an individual get a merchant account?
Absolutely. An individual with a registered business can have an account. Here we gave a guide on launching one.
Which banks have merchant accounts?
Not only banks but any merchant account providers can issue them. Among the providers, there are three types: acquiring banks, payment service providers, and payment gateway providers. Each type has its pros and cons.