If you are running an online gambling business and if you are planning to apply for a merchant account, chances are that your application will be declined; issuing banks are wary about this type of business.
Why? That is because online gambling is considered a high-risk account and there are a number of reasons why it is considered as such, including the following:
Licensing issues. As opposed to other types of business, online gambling sites have to hurdle stricter permits and licensing rules.
Possibility of merchant fraud. Many service providers must naturally be more wary of merchant fraud; lots of service providers are concerned that your account may engage in (be exposed to) undesirable behaviour.
Excessive chargebacks. It is believed that online gambling businesses are vulnerable to excessive chargebacks.
Your business appears on the MATCH list. MATCH stands for Member Alert to Control High Risk list, which catalogs offenders who commit fraud and other unscrupulous activities. If your name or business appears on the list, it can be more difficult for you to get a merchant account.
Still illegal in most part of the US. Apart from Delaware, New Jersey, Nevada, and Pennsylvania, online gambling is still illegal. In addition, most online gambling sites are based offshore, which leaves US banks with no options to providing credit card processing solutions.
How to find a reliable merchant services and credit card processing for online gambling
To get top-notch merchant services and credit card processing for your online gambling business, make sure to find a reliable merchant account provider / payment gateway in town. Here are some considerations to take into account in the selection:
Caters to high-risk accounts
Caters to offshore accounts
Industry recognition (i.e. recommended by reputable organizations in the industry)
Offers complete merchant account solution (provides all you need for your online gambling business payment processing
Offers 24/7 professional customer support
Provides one of the most (if not the most) competitive rates
For more information about merchant services and credit card processing for online gambling, contact us here at Swipebox at (720) 277-0648