How do online sportsbook merchant accounts work?
by Confidential Banking #1 Merchant Processing ServicesOnline sports
betting and gaming industries have exploded over the past few years. The niche
is ever-increasing; however, the betting landscape is overly complicated due to
various legal restrictions. The industry reputation and higher chargeback ratio
makes such businesses labeled as high-risk.
Both startups,
as well as established businesses, have a tough time finding a reliable bank
and payment processors to accept and process the payments. Such companies have
specific obligations that are better accommodated by offshore merchants. Not
only would you require a high-risk payment processor, but a merchant account
that’s low-cost, easy-to-work-with, and specialized in commencing your
high-risk business.
So to open
an online
sportsbook merchant account, choose a trustworthy payment service
provider.
Fill out the
necessary applications, gather important documents, and prepare your website
for a major policy check.
The payment
processor reviews all of your payment history, application, licenses, passport,
etc., before finalizing the decision. Even if the previous payment history
isn’t available, the processor would anyway put together all your documents.
The package of these documents will help establish that you’ll substantially
grow your business upon getting your merchant account’s approval.
Next, you must
select the preferred mode of payment for your customers, including local and
international ones. You must also ensure that your chosen payment service provider
(PSP):
-
Integrates with most of the
biggest betting platforms
-
Provides integrated fraudulent
and chargeback prevention tools
Finally, you
need to wait for the PSP to process your application and set up the online
merchant account. People find a lot of value in such merchant accounts to hedge
their bets.
Due to the
nature of such high-risk businesses, not many processors accept and process the
accounts and their transactions. In fact, coded sportsbook businesses have more
offshore solutions to operate in the industry. Ones with low chargeback and
high volumes operate at competitive rates. But if you’re a startup business,
you might have to face higher rates with steep setup fees. Once your business
starts running and produces larger volumes, the processor would move your
account to lower fees.
Individual
businesses also demand a particular gateway or API for payment processing
services. The banks and processors work to ensure all of your service requests
are satisfied. This makes it vital for you to partner with a reliable and
competent account representative who can help you set up an offshore company or
a high-risk merchant account with absolute ease and no uncertainty.
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Created on Oct 15th 2020 02:43. Viewed 254 times.