Are You in Need of Opening an Online Gaming Merchant Account?
When it comes to providing casino and online gaming merchant accounts, Double Helix Processing is the industry leader for payment processing. We also specialize in getting high risk merchants the services they need to successfully run their eCommerce business. Accepting debit and credit cards is the natural progression for online gaming businesses, especially with the booming part of the industry of app games for smartphones and tablets. The question then becomes, where do you go when you need a reliable and quality online gaming merchant account? Do you go the traditional banking route? No, you go with a company that specializes in high risk merchant accounts that understands what your business strategy and needs are.
Why is this? In a lot of places (countries, states and even municipalities) the legal gray area that comes with running an online gaming or gambling business. There are some states within the US that are cracking down and putting regulations and restrictions in motion to prohibit the industry. This means your business is categorized as being high risk. Does this mean that you won’t be able to successfully run your business or have access to accepting online payments? No, not at all, you just need to seek out your credit card processing solutions with experienced high-risk merchants who could offer you an online gaming merchant account that you need.
The only major drawback to using a high risk merchant is that the processing fees and competitive rates tend to be higher than with a traditional bank, the flip side of that coin is that the traditional bank doesn’t have the ability to offer you an online gaming merchant account since they deem the industry as high risk. So, in the grand scheme of things it’s a price to do business.
Was Your Online Gaming Merchant Account Shut Down by Your Processor?
When your business is set up to accept payments through an online gaming merchant account, there’s a high risk of incurring excessive chargebacks. If you’re unaware of what a credit card chargeback is, it’s when the customer disputes a charge on their debit or credit card by calling their bank and claiming not to have authorized the purchase, the product or service received was not as described, services we never rendered etc.
Regardless of the reason they use to dispute the transaction, it starts the process of a chargeback with the customer contacting their bank and the bank contacting your credit card processor, who then gets in touch with you. What happens next is that the disputed funds are taken from your bank account and do not become available to you again until the dispute is resolved, and in the case the customer proves that they didn’t authorize the transaction, the funds will not become available to you at all and will be awarded to the customer.
Will you, as the merchant be given a chance to respond to the dispute in this scenario? Yes, you are given an opportunity to respond to the customer and prove that the charge indeed, was authorized, delivered, was as described etc. In which case the funds would be released back to you, but the time frame of the entire process is a long and straining.
How Does Being High Risk Affect Your Chances of Getting an Online Gaming Merchant Account?
The primary reason to make sure you have the right high-risk processing account for your business is to avoid the chances of your merchant account being shut down. The bank can close your account and hold funds, often without notice. This means you have no way of selling your products or services, it stops all cash flow entirely, AND the money from the products or services you have already sold could be held by the banks for months.
When you start off with the right merchant account, you increase the longevity of the account. The bank’s underwriting or due diligence does not end after the account has been opened as they will continually review your accounts. There is ongoing risk monitoring that is associated with all merchant accounts.
So if an account has been opened and the business model is deemed high risk after the fact, expect the account to be closed quickly. Alternatively, starting out with the right high-risk merchant account increases the odds that the acquiring banks will be more understanding of your business model.
The label of high-risk merchant isn’t uncommon. Factors such as your industry, location, and even the clientele that you bring can identify your business and apply that high-risk merchant label. However, this shouldn’t send you into a panic, just because you may be more difficult to get processing for, does not mean you can’t get the merchant processing your business needs.
Online Gaming businesses deal with more amounts of credit card chargebacks than other industries because of the following reasons:
- Claims of fraud
- High-ticket items
- Gambling laws and Government regulations
Why Does this Matter and How Can Double Helix Processing Help with my Online Gaming Merchant Account?
Payment processing for online gaming merchants can be difficult to come by because of the nature of the industry itself to have a reputation for running a complex and challenging business model, there are high risk issues that underwriters look for when processing your application and which is also why traditional banks don’t want to assume the risk involved with providing online merchant accounts for processing.
Because processors are taking on a potentially greater financial burden in these situations, they’re more cautious and investigate whether the merchant itself is taking on risks that may not be necessary.
Unnecessary risks might include excess chargebacks, low credit scores, unpaid bills or late payments, and negative account balances. So it is advised to tie up any loose ends you might have before submitting an application for an online gaming merchant account; things like fixing any credit score issues, make sure your debts are in good standing and have a decent amount of liquid assets (cash in savings) at the time of application.
Double Helix Processing is leading the industry of payment processing, especially for high risk merchants and for those who need to open an online gaming merchant account. The merchant accounts process should be worry free, so you can focus on more important things. When you start off your payment processing with the right company, you’re setting your business up for success right from the beginning.
There are several business models in the online gaming industry that Double Helix Processing can help to get payment processing for, these include and are not limited to:
- Mobile Gaming
- Social Gaming
- Online Gambling
- Multiplayer Online Gaming
- Online Poker
- Horse Race Betting
- Competition gaming with payouts
- Competitive gambling
- And many more gaming types
We have the experience and the expertise to get online gaming merchants the payment processing they need, regardless of being shut down from other credit processors, history with excessive chargebacks, or even having bad credit.
Why Should You Choose Double Helix Processing?
We understand the unique needs of the different Online Gaming related business types and have established numerous acquiring banking relationships to become your best resource in getting Online Gaming merchant accounts set up and accepting online payments. Our expertise is your ticket to getting the stable processing you need to further your business.