Complete Guide to Online Gaming Merchant Account
When the whole world is struggling with the current scenario of pandemic there are certain niches that are blooming at present time. Online gaming is the most innovative industry that never sleeps. It caters a lot of potential for any sort of gaming like mobile gaming, poker, betting, gambling, social gaming, fantasy sports, etc.
Though the slight skid can be noted in the figures during the two years of the pandemic this has opened new opportunities for merchants with new games and strategies.
Looking into the past trends, gaming has always been a profitable business. And with the advancement in technology merchants are now capable of including gamers from all over the world.
What is online gaming merchant Account?
Merchant account facilitates payment accepting ability. It is a source account where all transactions are managed, processed, and settled. No transaction for gaming platforms can take place without an online gaming merchant account.
It is also the key controller of payment. Every incoming and outgoing transaction is controlled from this account. Even the merchant settlement and ability to repay the customers is governed by this merchant account.
Online gaming is majorly a live platform where users actively participate in the game spending money. There is always an entry fee for gamers no matter which game is it. So there should always be a very high responsive payment gateway to cater to bulk processing of payments and generating the slip.
Any issue with the merchant account or payment services can annihilate the customer’s experience.
Who needs online gaming merchant account?
Merchants running an online gaming business will always require this to facilitate payment operation. There are several games like Casinos, Small lottery syndicates, Reverse and penny auctions, raffles, Prize Draws, etc. where payments are first collected from users, and then the person who wins the game is allotted the prize money.
It relies solely on the games you offer on your gaming platform. The higher the incentive, the more people will be persuaded to earn money while spending very little.
Winning & earning money is highly engaging. This can be regarded as an easy method of earning. Having good payment services can result in high player engagement and thus benefits merchants.
New merchants seeking for High-Risk Industry prospects can get an online gaming merchant account and make millions in no time.
Online gaming merchant account fees
Online Gaming Merchant Account is a high-risk account. Services to high-risk business owners are comparatively expansive than low-risk businesses. There are several type of fees attached to accommodate to the financial loss from the Acquirers.
- Account Se-up or Installation fee
- Merchant Discount Rate (MDR) or commission rate
- Rolling Reserve or Security
- Transaction fee or processing fee
- Refund or Reversal fee
- Settlement or withdrawal fee
- Monthly maintenance or annual fee
- Chargeback or dispute fee
This might appear too much for new merchants but not every fee is applicable by payment service providers. Few charges are for a single time while others may be with the per transaction. Not every service providers are the same. They may vary in their fee structure.
Roughly it may cost 12% – 15% of your monthly transactions. However, if the margin is good with the earnings then this won’t look too much.
Merchants willing any further information can contact us as we offer payment services at great prices.
How can any merchant get online gaming merchant account?
Getting a merchant account isn’t difficult only if you are very much familiar with whom and how to approach a service provider. There are many popular names in the market. But do they solve your purpose of gaining an account? Getting correct and neat information is a must else you might regret in the future resulting in damaging of business.
In order to get fully functional online gaming merchant account, traders can either contact banks or a payment service provider like us. The procedure would be the same. Listed documents have to be presented in a set format to get approval for merchant account faster.
- An application for merchant account comprising of details about business requirements and others
- Business formation Document
- Tax ID of the business
- Incumbency Document
- Business Owner ID’s with photos
- Workable or live website.
- SSL Certificate and other web compliances
- Bank details with statements (3 months)
- History of Chargeback and frauds with your business.
These are some of the most important documents that a service provider may ask you to present before allotting an online gaming merchant account. They are validated and service is awarded. Major Acquirers don’t prefer merchants with zero or no previous processing history. They may contact us for the payment services.
What to consider when looking for an Online Gaming Merchant Account?
There are 4 things that any merchant should keep in mind while getting a merchant account.
Reliability means the trustworthiness of the service provider for many things like managing your payment services well, fully functional payment gateways, customer support regarding solving technical issues, and much more.
Flexibility over here refers to the fees structured to various services. This must not look like a burden to business owners. This should be bearable.
Competency is always an indicator of how competent a service provider is with running a High-Risk business. Very good in managing high volume simultaneous payment transactions and real-time reporting of transactions are important considerable points.
Experience can easily showcase the above-discussed three things. If the company has been servicing similar merchants for a long then it will be competent and reliable. This information is readily available from merchants who have previously established a relationship with the payment service provider.