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How to connect payment for gambling projects

How to connect payment for gambling projects

If you are planning to create your own casino, you will definitely need a gambling merchant. Processing gambling payments is an integral part of any gambling activity - without a payment system for gambling, you will not be able to receive deposits or make payments to players. The gambling industry is very vast and diverse, and it is a favorable field for scammers. That is why traditional banks are skeptical about those who work in the gambling industry.

It is not so easy to get a merchant for an online casino, but if you meet the requirements and provide all the necessary documents, as well as receive qualified advice from experienced specialists, the chances of getting a gambling merchant increase several times. Our experts can help you get a merchant, they know the industry and can help you navigate the complex application process.

What is an online casino merchant

An online casino merchant is a payment processing account specifically designed for gambling companies. Its purpose is to accept deposits, payments, and simplify player payments and prizes. The merchant is associated with a payment processor that is integrated into the website and / or application.

Acquiring for the casino is mandatory. No online casino can function without it. However, most online casinos face big problems when trying to open a bank account, get a merchant. The difficulties are due to the fact that online casinos, bookmakers, binary options are considered a highly risky business.

Why gambling accounts are considered high risk

It is difficult to get a merchant for an online casino without the qualified help of experienced professionals. Financial institutions are in no hurry to work with gambling companies due to the fact that they can launder money and cheat. Most banks consider gambling companies to be highly risky. Below are the main reasons why gambling accounts are considered high risk.

  • It is believed that the gambling business poses an increased risk for the underwriter, therefore it is considered high-risk.
  • Despite the fact that online gaming is very well regulated today, some financial institutions still believe that there are many threats in this sector. Over time, they will nevertheless become more modern and more gullible towards gambling providers.
  • Casinos and online gambling businesses are prone to chargebacks and chargebacks. Accordingly, the risk that the processor may incur when processing credit card payments increases.
  • Casinos and online gambling businesses have higher turnover than regular businesses, which also increases the risk for processors.
  • Processors often close the accounts of gambling companies that cannot maintain a low (less than 1%) payback rate. Processors do not want to be held responsible for balances that a gambling company cannot cover.
  • Most casinos are based in offshore zones, there is a chance that the company is engaged in fraud and money laundering.

The above reasons for mistrust of gambling organizations do not mean that it is impossible to get a merchant for gambling. A payment system for gambling is always an important component, in any country you can get a legal merchant for processing payments. If you have any difficulties with payment processing, you can contact our specialists.

Gambling account - MCC codes and rules

The Merchant Category Code (MCC) is a four-digit number that indicates a line of business. MCCs were first introduced by the IRS to help streamline 1099 reporting. The MCC is now affecting many areas of life, such as managing bonus programs, credit cards, and challenging chargebacks.

Companies are categorized according to the market segments to which they belong. MCCs are meant to denote the type of business that a particular legal entity is managing. And since MCCs are appointed early in the merchant's business journey, they can easily become obsolete — especially since they are not often revised or changed.

It is important to note that the code classification used by the IRS does not always match the classification used by online transaction processors. Moreover, the classification of different online payment processors may also differ. For example, legal entities with Visa and Mastercard may have different MCCs.

Acquiring banks use the MCC to assess the potential risks associated with servicing accounts. Gambling accounts are classified as high risk. That is why they receive more attention and more requirements than regular accounts. Each country has a different attitude towards the gambling industry, one of the most stringent countries being the United Kingdom.

What merchant category code (MCC) is assigned to an online casino

In 2015, 3 new MCCs related to the field of gambling were introduced. This made it possible to distinguish licensed gambling establishments from unlicensed ones. Below are the 3 MCCs in the gambling industry:

  • State online lotteries - 7800
  • Regulated Online Casinos - 7801
  • Regulated online horses and dogs - 7802

If your gambling account does not fall into any of the above categories, most likely, the 7995 code will be linked to you. This will negatively affect your gambling business, as banks tend to refuse transactions with this code.

MCC codes are designed to protect processors and banks from possible legal consequences, since accounts with codes 7800, 7801, 7802 (high-risk) are most often charged with chargebacks. Accepting payments for casinos has always been and will be a difficult process. A gambling payment system should always be thoroughly analyzed before concluding an agreement with it.

Why do you need online casino payment processing

If you are building an online casino, bookmaker, or binary options, you cannot function properly without a payment processing merchant. Without it, you won't be able to accept payments using credit cards or other popular online payment methods. As a gambling provider, you should be able to accept payments from all over the world 24/7. You should also be able to process these payments safely and efficiently.

How to register a merchant for an online casino

Gambling is a specific area for banking services, so it has its own peculiarities of obtaining acquiring for a casino. Most online casinos have difficulties getting a merchant at the first stages of negotiations with a financial institution. Online casinos and bookmakers often turn to experienced professionals to avoid unforeseen problems in the future. How to register a merchant for an online casino:

  1. Develop a website, launch it, add certified software (slots, roulettes, etc.).
  2. Analyze the offers of different banks, choose the best one and open a current account.
  3. Find out the necessary documents for obtaining a merchant and collect them.
  4. Analyze the offers of different operators, choose the best one and apply for opening a merchant.

Since gambling is a specific and high-risk area, most operators require a huge amount of documents to obtain permission to legally accept payments for casinos. Each operator requires different documents to obtain a merchant, our specialists can help you choose the best operator and collect documents.

Before providing a gambling company with a merchant, the operator checks its website. To make a positive decision, the site must contain mandatory information.

How to maintain a positive rating from an online casino merchant

Very often, those gambling accounts that have a payback rate of more than 1% are deactivated by banks. This is a common problem for most online casino owners who have just started working in this area. In some cases, keeping the payback rate at 1% is more difficult than getting a gambling merchant. Below are some tips on how to stay within the set refund rate.

  • Make sure your account description is clear and consistent with the name of your gambling company. Most users will refuse to pay if they notice something suspicious in the description.
  • We recommend that you keep a record of the details of each operation and archive them properly. We recommend saving the date, time and IP-address of the computer from which the payment was made.
  • Set up an automatic receipt to be sent after the transaction is completed.
  • Conduct periodic surveys on customer satisfaction with your services.
  • Provide your online casino with a qualified support team that will professionally solve customer problems. It will also not be superfluous to create a data processing team.

Acceptance of payments for casinos has always been a difficult process, so it is difficult to do without qualified assistance. The payment system for gambling also plays an important role in this area, since the gambling business largely depends on it. If you need acquiring for a casino, but you are experiencing difficulties in obtaining it, contact our specialists who have extensive experience in the field of gambling.

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