Today, the online gambling market is driving, and the credit goes to the increasing adoption of smartphones with better internet connections. Mobile device uses are comparatively higher as compared to desktops and laptops.
Nowadays, in most countries, mobile users make up roughly 80% of all users in the online gaming sector. According to a survey by the Gambling Commission, mobile phones will continue to be the most popular way for younger people to access online gambling in 2020. Online gambling laws and regulations vary from one country to another. Most countries have their rule.
With a compound annual growth rate(CAGR) of 10.4%, the worldwide online gambling enterprise is anticipated to increase from $73.42 billion in 2021 to $81.08 billion in 2022. It is expected that the online gambling enterprise will reach $115.13 billion by 2026 at a CAGR of 9.2%.
The gambling industry is more and more innovative nowadays. It is an excellent place to invest and become rich. The merchant should take advantage of this situation. You need a high-risk payment gateway ant account if you are also planning to establish an online gambling platform.
A gambling merchant account is essential to operating your business. Without a merchant account, you cannot receive funds or deposits and make payouts.
Let’s learn more about an online gambling merchant account.
What is a gambling merchant account?
Like any other merchant account, the gambling merchant account’s essential function is to accept deposits and payments and facilitate payouts. This account provides enterprises with financial and technical solutions for collecting customer funds.
It is a credit card processing account that explicitly serves its services to gambling enterprises. Generally, this type of merchant account is linked with the payment processor. These payment processors are integrated into gambling websites. Most of the service providers offer additional features and plans to attract merchants.
But the most critical thing with a gambling merchant account is that not all the financial institutes and acquiring bank offer their services to this enterprise. This is because these enterprises have much more chargebacks than any other enterprises.
Most of the acquiring banks and financial institutes classified them as high-risk.
Is a gambling merchant account classified as high-risk? Why?
As discussed above, most acquiring banks and financial institutes classify gambling enterprises as high-risk due to the high chargeback rate. But this is not only the reason. There is much more reason why gambling enterprises are considered high-risk. Let’s have a look at these reasons –
- It has a high-volume turnover, and it is considered a high factor by most banks and financial institutes.
- Gambling enterprises do not have specified rules. Every region has its own local laws and regulations. So, it’s pretty challenging to run this industry globally.
- This industry has a high return rate and chargeback rate. If the chargeback rate exceeds 2%, the acquiring bank or financial institute immediately terminates your gambling merchant account without any notifications.
- Most gambling enterprises are based offshore, and there are concerns over money laundering and fraud.
Due to these reasons, gambling merchants need a high-risk gambling merchant account. Having a high-risk merchant account is quite tricky but not impossible. As a gambling merchant, you must choose a fintech service provider with experience in dealing with the gambling industry.
How to obtain a high-risk merchant account?
It is challenging to obtain a high-risk merchant account if you are a newcomer. But, still, you can get a high-risk merchant account. For this, you must do lots of research regarding the fintech service providers that are compatible with the gambling industry.
Nowadays, you can find many service providers, but most of the service providers ask you to pay high because of the increased risk in nature. The most popular service provider, such as PayPal and Stripe, does not provide their services to high-risk businesses. But, thanks to PayCly.
PayCly is one of the leading service providers specializing in dealing with high-risk businesses such as gambling, adult, forex, etc. We, as PayCly, have a contract with many acquiring banks worldwide, so we help you obtain high-risk gambling merchant accounts.
Let’s check what we offer to our high-risk merchants –
- As you know, we have a deal with many acquiring banks; we can help you get approval for the merchant account. With all the proper documents, it will take a minimum of 3 to 7 days.
- We have high-tech PCI DSS level 1 compliance. We also offer the merchant the latest technology security tools such as anti-fraud, chargeback, reverse recurring, etc.
- We offer credit card processing. Also, we support alternative payment methods such as net banking, e-wallets, mobile payments even cryptocurrency.
- Our services are available worldwide.
- We accept multi-currency.
- We have 24*7 real-time reporting.
- We also offer invoicing solutions to add more control over internet processing functions.
- Our integration process is straightforward.
- We have a powerful dashboard that helps you to download reports and details to make better decisions.
Documents need for registration of merchant account –
The documents and terms of opening the gambling merchant account vary from one service provider to another. To minimize the waiting time, you can apply with us. We PayCly takes a minimum of 3 to 7 working days. But this waiting time also depends on your documents. We offer you the legal merchant account.
The list of documents you need to submit are –
- Full description of your gambling business.
- Complete information about policies and refunds.
- Merchant personal data such as valid government id cards.
- Last three months’ bank statement
- Last six months’ payment processing history of the business bank account.
How high-risk are gambling merchant accounts beneficial for gambling enterprises?
A merchant account is essential to accept credit and debit card payments. As it is a financial account, the fund is transferred from the card issuing bank to the merchant business bank account. Along with this, it also offers many benefits. Such as –
- It offers zero foreign exchange risk. As a merchant, you do not have to worry about foreign exchange risk, as the service provider manages them.
- It offers you the best opportunity to increase your foreign customers. It allows the foreign customer to make the payment in their currency without any currency conversion charges. It helps you to grow the traffic on your gambling sites.
- Most service providers charge for the setup, but “PayCly” does not.
There are many more benefits like multi-currency acceptance, various payment modes, high-technology security, etc.
Final thoughts –
Gambling is a profitable business. It is an excellent place to invest. But, establishing the gambling business is not easy work. At the very first, you have to obtain a merchant account. As gambling is considered a high-risk industry, you have to look for high-risk merchant accounts.
Nowadays, you can get many fintech service providers. But not all service provider is compatible with your business model. So, we recommend you choose PayCly as your service provider.
PayCly can find the best solution for you as it has many years of experience, innovative features, cooperation with reputable worldwide partners, and more. It fulfills all the requirements of your high-risk gambling business and helps you to win customer trust. We offer a reasonable rate in the market.
To know more about our services, you can contact our expert teams without hesitation.
