High-risk businesses have so many things to manage and when it comes to their merchant accounts, there is so much to know about. If you are a casino or gaming merchant or planning to open such a business, you should know the related facts about its merchant account. Yes, you need one to smoothly receive money from your customers and to process the bulk volume of transactions. Also, the money withdrawals by the casino or gaming players and also merchants need to come to light. Stay informed and keep your business protected from any unforeseen threat. The information below should surely help you as a merchant.
What is a Merchant Account?
A merchant account is a type of business account where a business receives payments from its customers and also refunds in case of a chargeback. The same account is used by the business owner or merchant to withdraw money. Through a merchant account, transactions can happen in multiple currencies and in varied payment methods such as credit or debit cards, online payments, bank statements, etc. A merchant account is attained through an agreement between an acquiring bank and a merchant.
Why do Casino and Online Gaming Businesses need Merchant Accounts?
These businesses are high-risk businesses and traditional banks normally do not provide a business account to such commercial entities. A high-risk business is one that is prone to higher chargeback ratios. Also, such commercial bodies are prone to financial fraud such as hacking.
The casino & online gaming merchant accounts can conduct transactions under the MCC-code 7995. MCC stands for Merchant Category Code. This code protects the rights of the client, the seller, the merchant account, and the provider.
What Is the Role of an Underwriters When a Merchant Applies For a Merchant Account?
You can say that an underwriter has the most important role in the approval or rejection of a merchant’s application for a merchant account. His main job is to review the application from varied aspects to ensure it is fine to forward for approval. It is his responsibility to ensure that the business applied for the account is not at any unnecessary or big risk.
An underwriter scrutinizes the following things –
Credit Score – Of course, the underwriter takes the first look at the credit score of your business as well as your personal one.
History of Chargeback – There shouldn’t be a high chargeback rate, otherwise, rejection happens.
Credit Card Processing History – The credit history of last year is specifically important and in case of bad credit, it should show improvements in the past several months.
- Content on the Merchant’s Business Website – There should not be fake commitments that sound exaggerated or are not possible to complete practically.
- Bank Account Balances – The negative bank account balances are not good and the merchant should always keep some savings before applying for the merchant account.
- Bills and Payments – The pending bills and payments bring a quick rejection on your application. While the timely paid ones bring a good affordable deal.
What Do Players Look for in a Good Casino and Online Gaming Account?
The casino or gaming players run the business because the customer is the king. To ensure they are playing with a good merchant, they have expectations from their casino merchant accounts. To get the long-term loyalty of players, you should pay attention to the priorities of your customers. Before you buy a merchant account you should know that your customers are looking forward to the following things.
- License – The players normally look for at least a medium-level license and they are reluctant to basic license account. They are always insecure about the threat of losing money due to any fraud.
- Reputation – Players choose only renowned casinos and online gaming platforms because they want to play safe. Casino players normally spend millions and they have to choose a reliable casino. Reliability comes from goodwill. It is best if your company is listed on the stock exchange.
- Security – The safety of money invested is also an obvious factor for the players. They can trust even a new casino or gaming merchant account if it gives the commitment to offer complete security. The merchants with PCI-DSS tags on their website always get the immediate attention of the gamin players.
How can a Merchant Protect a Merchant Account from Fraud?
Your merchant account is the strongest shield against any sort of financial fraud but to maintain the security of your business follow some precautions.
3-D Secure Transactions – It is the first and the most important thing that keeps your merchant account free from any fraud. It is the most important parameter of the PCI-DSS compliant merchant accounts. It adds a 3-step verification layer to your account, which is good for you as a merchant and also for the customers.
Keep an eye on the Monthly Report – The merchant account providers and payment gateways provide details monthly transaction reports. In this way, you can spot the customer accounts that are suspicious. The best thing is to assign the job to an expert to scrutinize the nook and cranny of transactions. A business can understand a lot about customer behavior with the help of monthly transaction reports.
Block The Customer Account With Recurring Friendly Fraud – Some customers consumer products and services just to ask for bigger money back and earn money through it. They raise a fake issue and credit card companies normally favor the cardholder. If you see any such customer account, it is better to block it.
Casino and online gaming merchant accounts have many aspects to reveal. High-risk merchants should always stay informed about the nook and cranny of the technicalities of their businesses. Merchant account is already a concern for all business owners. Those who are planning to apply for a high-risk casino merchant account or Online Gaming Merchant Account should pay attention to the points above. At EskayPay, we can provide your merchant account through a simple and speedy process as we have a vast network of acquirers. Contact now and get your merchant account.