Online gambling is becoming more popular than ever. Everywhere you look, on TV, within your mobile apps and the vast Internet, you see commercials for the gaming industry tempting to come play some “adult” games. Especially since the laws have been updated a bit since the Interstate Wire Act of 1961 was signed into law. The Federal Wire Act prohibits the use of wire transmission for the purpose of bets and wagers on sporting events and contests. But In September 2011, the US Department of Justice announced that in their “formal legal opinion”…. “interstate transmissions of wire communications that do not relate to a ‘sporting event or contest’ fall outside the reach of the Wire Act.”
That meant that other types of gambling and online gaming did not fall under the Act and were therefore allowed. And thus became a budding new industry. In addition, changes in the way that Visa and MasterCard assign the merchant code to online gaming have made it easier to determine the difference between legal-state run gaming and illegal enterprises. Since then, online gaming has become more and more accepted in everyday life.
Even so, it can still be difficult for the gaming industry to find merchant account approval.
That is partly because they are not without their fair share of regulations. States such as Nevada make sure that the businesses operating within the state are operating legally and following all guidelines. Online gaming companies are saddled with implementing controls to verify age as well as location to ensure there aren’t any violations.
Players are using their mobile devices more than ever and that means they want to be able to access their gaming anytime from anywhere. Geo-location technology must be implemented to verify the user is actually in the state where it is legal.
Casinos, brick and mortar gambling houses, have much more than just gaming to consider when searching for a complementing merchant account.
Housed within the walls of a casino will be many of what everyone considers “traditional” business. They will tend to have a multitude of restaurants and bars, entertainment areas where they host concerts or shows, and many have high end spas on property. All of these outlets will then also require versatile point-of-sale systems that must be integrated with in order to keep up with customer demand. Mobile gaming is just another part of what you offer in your physical location and allows you to reach out to customers that might not otherwise be coming in the front doors.
Even though gaming and online gambling are becoming more commonplace in society they are still considered high risk by merchant account providers making it a challenge to get a merchant account for these businesses. One of the main factors in measuring a high risk business is it’s reputation. Of course, a processor will look at a merchant’s credit as well as whether or not it has a high instance of charge backs, but that is not everything. They also want to take into consideration the reputation and overall consumer perception that surrounds that industry. There is also the simple fact that online businesses represent a higher instance of data breach resulting in theft of consumer data.
Another thing the acquiring bank takes into consideration is how long the industry has existed, and how long the business has been operating. While gambling houses have been around in some states for a very long time, obviously, the online gaming industry is a budding one. As we’ve seen the rules and regulations around online gaming are being updated and changes are almost guaranteed to keep coming. This is probably one of the most important considerations for the merchant account provider when they are measuring their level of risk and responsibility.
However, that doesn’t change the fact that as a thriving business, one that you’d like to keep that way, you will need a reliable merchant account for your gaming enterprise.
First of all you want to make sure you are applying with a Merchant Service Provider who specializes in high risk merchant accounts. There are a lot of processors out there who may have lenient enough guidelines for you to get approved for a merchant account but if they don’t know how to handle your account or the unique needs of the industry they may end up closing your account and causing undue stress for your business and your customers.
The ideal gaming merchant account will address all of your various merchant needs.
- Streamline your online gaming processes
- Offer domestic and offshore account options
- E-commerce options
- ATM placement
- Bank transfer (ACH)-for online accounts
- PCI-DSS security protocols
- Provide additional services such as accounting software integration, employee management tools and marketing tools
- Transparent pricing and quality customer service
- ETA Certified Payment Professionals
When you are a “high risk” merchant you tend to think that terrible contract terms and high rates are just a fact of life. At Bankcard Brokers we don’t believe you should have to suffer just because yours is a higher risk than other businesses. We can pair you with a merchant account that meets all of your business needs -at a fair price. We pride ourselves and have built our reputation on providing superior service to the industry. Our focus is to partner with you for life, provide you with a merchant account that compliments your business model, then provide you with the support that allows you to focus on running that business.
One of the most successful ways to find and keep a merchant account is to find a high risk processor that is willing to work with your business type. Bankcard Brokers is not only happy to work with the Gaming Industry but we specialize in this type of merchant account.
We have solutions that will integrate with many website shopping carts and platforms. When you use one of our ETA Certified Payment Professionals (Electronic Transactions Association) you can rest assured that you will be processing payments safely and securely. We have the education and expertise to help you lower your risk of fraudulent transactions which in turn will ultimately save you money and lower the risk involved with your merchant account.