What You Need to Know About Online Sportsbook Merchant Accounts

by Confidential Banking #1 Merchant Processing Services

Did you know that the regulated US sports betting market is more than likely to surpass $80 billion in the next ten years? (Source: H2 Gambling Capital) However, if you want to capitalize on the exploding gambling industry, you will face many challenges at the beginning of your online entrepreneurship—one of which is accepting online payments safely and securely.

This is where the importance of choosing an online sportsbook merchant account provider comes into play. Continue reading to determine why you should use merchant accounts for payment processing and what to look for in an online sports betting merchant account.

Why do you need a merchant account?

Given that debit and credit cards are by far the most popular forms of payment in the United States, you are giving up an incredible revenue stream if you do not accept them both. This is where a merchant account can come in handy—it enables you to accept credit and debit card payments on your site.

It works like this: your customers make a secure payment through their credit or debit cards, and the funds are deposited into your merchant account. From your merchant account, funds are then transferred into your bank account within 1-3 business days.

Choosing a merchant account provider

From offering multiple secure payment options to creating a seamless shopping experience that drives sales, online merchant services are the answer to many of the challenges faced by an online gambling business. That being said, not all merchant account providers are created equal. So, how do you choose the right one for your business? Consider the following factors to make a well-informed decision:

High-risk payment processing

The primary reason you are looking for a merchant account provider is, of course, to process your online payments. Unfortunately, when it comes to securing a merchant account, sports wagering businesses are deemed high risk. This is attributed to various factors, including an increased risk of chargebacks and a perceived lack of security in online transactions. Don’t lose hope, however. Find one of the many merchant account providers that specialize in high-risk merchant processing. Just make sure the high-risk merchant account provider you are thinking of partnering with has experience working with businesses in your industry.

Encrypted payments

In today’s fraudulent cyberscape, encrypted payments are not an option; they are a necessity. Your visitors will abandon your site if they don’t feel you have a secure payment gateway. So make sure your merchant account provider uses Secure Sockets Layer (SSL), which refer to cryptographic protocols designed to provide communications security for online transactions over a computer network.

A streamlined payment experience

You have piqued your visitors’ interest, and they are about to place bets online. But if the same visitors leave your site without taking any action, you know you need to do some work. A lousy payment experience is one of the main reasons for the high volume of lost sales. So make sure your payment experience is simple—this could mean incorporating payment gateways on your website to avoid redirecting your customers to a third-party for processing.

To discuss your online sportsbook merchant account needs, contact Liberty Enterprises, Inc. today!