Online gaming and casino businesses are growing at an exponential rate, but not the payment providers that offer merchant accounts for these e-Gaming businesses. This growth for online gaming and gambling industries was made easier, thanks to the legal changes in the USA. Paving the way for substantial demand for online gaming payment processing services.
As a payment processor located in the European Union, EU Paymentz has built an extensive network of banks and financial partners. We are steps ahead of most gambling payment providers who are still hesitant to take on the challenging yet rewarding task of processing high-risk online gaming merchant accounts.
Read on to learn more about online gaming and gambling, and how to get started with EU Paymentz.
Types of Online and Gaming Business Merchant Accounts
Most payment processors and merchant acquirers will not work with any type of gaming or gambling merchants. This business can come with potential legal issues, along with the history of gaming merchants experiencing high chargebacks, which have kept most banks out of the industry. However, EU Paymentz have long since come up with legitimate and tested solutions for merchants, so that banks and financial institutions will learn to trust their business again.
Ready to get started? These are the most common casino and online gaming merchant accounts:
- Online Casinos
- Online Poker
- Online Bingo
- Mobile Gambling
- Mobile Gaming
- Horse Racing
- Social Gaming
Online gambling merchants that have experienced trouble with previous payment processors — whether application denial or account termination, are welcome to apply with EU Paymentz. We work with clients that have a history of high returns, chargeback or bad credit.
Understanding Online Gaming Merchant Account Fees and Requirements
Merchants that are applying for gaming merchant services are going to need to provide a number of different documents for underwriting. Regardless if the business is located in the EU, USA, or elsewhere offshore, merchants will need to pass the know-your-client (KYC) procedure.
For fastest approval; required documents will include:
- Valid Driver's License or Passport
- Voided Bank Check
- Last 3 to 6 months of Bank Statements
- Last 3 to 6 months of Processing Statements
- Valid Social Security Number or Employer Identification Number
- Clean Processing History (Under 2% Chargebacks)
While EU Paymentz cannot guarantee that an account will be approved, we will work with the merchants to expedite the process. 24-hour approvals are possible, but it’s not always assured.
Merchants should keep in mind when applying that the more information provided, the faster an account can be approved. There is no application fee, and we tailor the right solutions for high-risk merchants and set up their gaming merchant account in less than 72 hours.
Factors Affecting Online Gambling Merchant Account Fee
The online gambling industry has operated in legal limbo for years, though the grey area has become smaller. In 2018, a Supreme Court ruling in the USA stated that the Professional and Amateur Sports Protection Act violated the 10th Amendment. While this has opened the door for legalized online gambling in the USA, it still has not been widely adopted.
Each state reserves the right to legalize online gaming, but federal legislation has tampered much of the action. Though some states have laws allowing restricted forms of online gaming, the vast majority of games remain prohibited. For this reason, most online gaming processing occurs offshore as a way to avoid liabilities in the USA and other jurisdictions.
In addition to the potential legal implications, many of the payment processors have other concerns with the problems affecting online gambling. Fraud plagues the industry, with many of the websites having a history of high chargebacks and returns. This alone raises many red flags and prevents financial institutions from wanting to be associated with the industry.
Payment processors in the offshore industry that accept gaming have to deal with increased scrutiny of their business practices. Many legal jurisdictions have focused on gambling payment processors with reports of money laundering. While this might not be the case for all businesses, it does draw additional attention to the payment processors handling the industry.
Compliance for Gaming and Gambling Businesses
One of the most important steps for a gaming business is to be in compliance with Visa and MasterCard. Payment processors can ensure businesses are compliant by properly categorizing the business when the merchant account is established.
The most commonly used MCC coding used for merchants operating skilled gaming are 7994, 7995 or 7999. While the codes of 7994 and 7999 are considered medium risk, 7995 is classified as a high-risk business. Depending on the type of gaming, one of these codes will be assigned to the merchant.
- Websites with Money Prizes:
VISA without a license will use MCC 7994 or 7999
Mastercard requires a license and will use MCC 7995
- Websites with No Prize Money but In-Game Prizes:
VISA without a license will use MCC 7994 or 7999),
MasterCard, if a license is required, will use MCC 7994, 7995 or 7999)
- Websites with No Money Prizes or In-Game Prizes to Win:
The MCC will be either 7994 or 7999
Merchants operating without proper MCC coding can be quickly found and have their accounts terminated. Whether it was the fault of the merchant or the payment processor, the costs can be high for the business. Working with a payment processing company that understands the gambling industry is essential in today's online e-Commerce industry.
How to Apply for an Online Casino and Gambling Merchant Account
Start Accepting Gambling Payments Today!
Merchants operating in the gaming and gambling industries need to partner with a payment processor like EU Paymentz. With a solid EU banking network along with a robust offshore portfolio of banks, merchants have many payment options. Whether it's online casino games or social network gaming, EU Paymentz has reliable solutions.
Our payment gateway and fraud protection provide merchants with the tools to grow their businesses. By helping with transaction management and fighting online fraud, merchants can reduce the time and money spent on these problems.
Getting started is a fast and simple process. With a full application package, online gaming and casino merchants can start processing payments in as soon as 24 hours. With an easy to manage payment gateway, merchants will have no trouble with gateway integration or function. Contact our team for more information and to get started accepting gaming credit cards.
EU Paymentz has built and continues to grow its strong network of gaming financial partners. Merchants that have existing accounts or are looking to begin in the online gambling industry are encouraged to speak to our team.
We offer our merchants multiple solutions for a variety of online gaming merchant accounts and business models. Whether a merchant is looking for an EU based payment processor or to partner with an offshore company, we have solutions. Contact us for more information and to start accepting credit cards today!