If you are planning on operating an online gambling platform, you are going to need a gambling merchant account. Gambling payment processing is integral to your operations- without it, you cannot receive deposits, or make payouts. The online gambling industry is vast and, like other industries has nefarious actors. Therefore, conventional banks are somewhat sceptical of those operating within the gambling industry.
Getting an online gaming merchant account is not easy, but if you comply with the requirements and provide the required documents and information, as well as going through an experienced corporate services provider, the chances to get your gaming merchant account approved are extremely high. The key to success is partnering with someone who knows the industry and can help you navigate the complex application process.
Fast Offshore has worked with countless gaming businesses from all over the world. We have helped them open merchant accounts for gambling companies in various offshore jurisdictions and we have a very high success rate.
In this section, we will discuss the process, complexities, and challenges of opening a gambling merchant account.
What is a Gambling Merchant Account?
A gambling merchant account is a credit card processing account that specifically serves online gambling companies. Its purpose is to accept deposits, payments and to facilitate payouts and players prizes. It will typically be linked to a payment processor that is integrated into the website and/or application.
Due to several reasons that we will discuss later on in this article, gambling payment processing is considered a high-risk activity. Thankfully, Fast Offshore has over 23 years of experience working with online gambling operators and helping them get the proper accounts to link to their gambling platforms.
Why is a Gambling Merchant Account Considered High-Risk?
Gambling companies are considered “high risk” by most banks. This is due to several different reasons which we will list here.
- The gaming business is considered to present a higher risk to the underwriter, therefore it is considered high risk.
- While today, online gambling is very well regulated and organized, some financial entities still believe that certain threats exist. In time, they will likely become more up-to-date with the industry and more trusting of online gambling providers.
- Casinos and online gambling businesses are prone to high chargeback and refund rates and increase the risk the processor may incur when processing credit card payments.
- They also have a higher turnover which increases the risk for processors.
- Credit card processors often terminate online gambling merchant accounts when businesses cannot keep a low (less than 1%) chargeback ratio. Processors don’t want to be responsible for any balances that the gambling platform cannot cover.
- Many gambling businesses are based offshore and there are concerns over the incidence of money laundering and fraud.
This doesn’t mean that getting online gambling payment processing is impossible. There is still a way to get legitimate payment processing accounts to serve your online gambling site. Contact us today to receive more information.
Why Do I Need Gambling Payment Processing?
If you are setting up an online gambling company, you will need online payment processing accounts. Without them, you will not be able to accept payments via credit cards, or other popular online payment methods.
As a gaming provider, you need to be able to accept credit cards and payments from around the world, 24-7. You also need to be able to process these payments securely and efficiently.
Fast Offshore can help you open an online gaming merchant account that will cover all kinds of gambling including:
- Sports betting
- Online casino
- Online poker
- Live Betting
- Online lottery
- Live Table Games
- Online Bingo
- Fantasy Games
- All sort of games of chance.
How Much Does it Cost?
There is no cost to apply for a gambling merchant account, however, the minimum processing volume to apply for a gaming merchant account via Fast Offshore is 100.000 euros.
If your application is accepted, there will be set up or activation fees involved. Additionally, you will receive a detailed fee schedule for all your transactions. This fee schedule is offered on a case-by-case basis and based on the volume, geographical location of your customers, average transaction size and other factors.
Fast Offshore prides itself on providing industry-competitive, transparent and affordable fees for our expert assistance with the process. Contact us now and take advantage of a complimentary 30-minute consultation to talk about your goals, business requirements and to clear any doubts.
Gambling Payment Processing Requirements
There isn’t a definitive list of documents that are required to open an online gaming merchant account. The requirements will change depending on various factors. We can, however, give you an idea of what will be required. As a starting point, you will need to hand over the following:
These are the requirements to open a merchant account. Please note that additional documentation may be required on a case-by-case basis:
- Complete the application form
- Provide a copy of your Gaming License
- Company certificate of registration
- Memorandum of articles of association or an equivalent document
- Register of shareholders dated within the last 3 months and signed by the director of the company
- Certificate of Good Standing
- Register of directors dated within the last 3 months and signed by the director of the company
- Certificate of incumbency or equivalent
- Provide a forecast of transactions including anticipated number of transactions, average value per transaction, total volume, the main geographical locations of the cardholders and processing history (if any)
Additionally, any Director(s), Officer(s), Shareholder(s) and Ultimate Beneficiary(ies) of the company must provide the following documents:
- A certified copy of your passport. In some cases, the bank may request that it’s apostilled by the country of origin.
- A certified copy of a utility bill as proof of residential address that contains the full name and full residential address (issued within the last 3 months). This includes electricity, water, fixed phone line, fixed internet bills as well as bank statements or official government correspondence. Mobile bills or mobile internet bills will not be accepted.
- A bank reference is also required in the format of a letter, on the bank’s official letterhead. Typically it includes information relating to the length of the banking relationship (which should be a minimum of 2 years), the nature of the accounts held, and whether the account holder has been an upstanding client. This letter must have been issued within the last 3 months.
- A professional letter of reference (issued within the last 3 months) of a character nature by a lawyer or accountant of which the shareholder has been a client for at least 2 years. Account-holders can also provide a second bank reference from another bank.
- Updated Curriculum Vitae (resume) duly signed
Tips to Keep Your Gambling Merchant Account in Good Shape
There are some other actions you can take to keep your gaming merchant account with a chargeback ratio below 1%. They include:
- Ensure that your descriptor is clear and that your clients are aware of it. Most users will refuse a charge if they don’t recognize the name
- Recording details of every transaction and archiving them appropriately. This should include the date, time, and the IP address of the computer from which the payment was made
- Ensuring that an automatic receipt is sent once a transaction is complete
- Conducting customer satisfaction surveys
- Offering full refunds when necessary (too many refunds can also get you in trouble)
- Communicating with customers using knowledgeable and skilled customer support or processing team
How Can Fast Offshore Help Me?
Fast Offshore has been working in online gambling since the industry first began. During that time, we have amassed a wealth of hands-on experience and knowledge in corporate services, online gambling, licensing and opening bank accounts for clients. As an online gambling operator, trusting us with helping you get your merchant account is a smart move. We have developed decades-long relationships with processors and have solidified these with our commitment to honesty and transparency. To find out more about opening an online gaming merchant account, contact us today!
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