The sphere of online gambling traditionally belongs to the highly risky in terms of banks and various financial institutions. That is why it is not easy to open a merchant account for online casinos. Let’s understand the peculiarities of payment processing for this industry and the legal nuances and subtleties of accepting charges from customers. We also suggest you consider gambling payment gateway integration services from Corefy with a comprehensive tool that simplifies and integrates all processes in one place.
Choosing the right payment provider for online gambling is a complicated process that should be treated responsibly. Each service has its specifics and advantages that should be considered before making a decision.
What is gambling payment processing?
Gambling sites operate on the principle of deposits: players deposit their accounts and use that money for betting. Accordingly, it is necessary to provide users with a variety of replenishment options. And you also need the reliability, security, and stability of the payment service you choose.
To provide card processing, a business owner needs to agree with an acquiring bank and processing center. Usually, acquirers provide some strict requirements for merchant account holders, which is problematic for online gambling businesses (we’ll talk about that below). Here are some standard bank requirements:
- Having a checking account for the company to receive funds.
- Full set of business documents: registration and financial.
- The credit history of the company;
- Information on the geography of operations, financial turnover, and business history;
- Owner data (passport and financial);
- A detailed description of the services available on the gambling site. The site as a whole must meet the bank’s requirements (especially security).
A merchant account is not designed to hold money, it is a pass-through account. In this case, money from the merchant account does not immediately go to the current account.
Why is online gambling considered high-risk?
Keep in mind that the gambling industry is traditionally classified as high-risk. According to international payment systems, such sites can affect the reputation of acquirers due to the high probability of fraudulent transactions. Completing the problem are international and national bans for banks to cooperate with gambling projects.
So it’s hard to find a bank willing to register a merchant account for such a site. Besides, card processing is not enough to satisfy players’ requests: some people want to pay via e-wallets and cryptocurrency. To fulfil all requirements of gamblers, it is very important to find a fast and properly working payment solution (this is often a big problem).
Some online casino owners prefer to use the services of an intermediary who provides fast merchant account registration with a minimum of requirements and documents. Besides, it organizes support for different payment methods, including cryptocurrency and various online banking tools.
How to choose a gambling payment processor?
The main requirement is the ability to maintain a merchant account. Such accounts are traditionally categorized as high-risk due to a large number of transactions, a high probability of refunds, and fraud by customers (for example, stolen card details). This is a very great concern for the field of online gambling, especially these days.
Simply put, a merchant account operator has to spend a lot of resources to provide transactions for the casino site. Not everyone is ready for that. Gambling bans in many countries also matter. Many banks refuse to work with gambling projects to exclude reputational risk and sanctions from payment systems. By the way, if you are interested in a payment gateway for online gambling right now, check out the offer from Corefy. This is a great solution that will leave all your competitors far behind.
Therefore, the first criterion is that the platform you choose should provide favourable conditions for cooperation. In most cases, these are specialized operators or special aggregators for gambling. Other selection factors for the online gambling sphere:
- Fast processing of several types of bank cards.
- Ability to offer players local payment methods.
- Support for E-money payments, according to the geography of the site’s customers.
- Ability to accept subscription payments (recurring payments).
- Fraud prevention system and transfer of responsibility for refunds.
- Easy integration with the largest gaming platforms.
Most gambling sites use specialized software products. Ideally, if it is possible to implement the payment operator API into them.
The process of connecting payment systems to an online casino
Integration of payment acceptance service on the gambling site is done via API. The aggregator usually provides ready-made solutions for clients, so installation and setup are quick and easy: in 1-2 days. Through the API, you can integrate full functionality for the merchant, create a payment button, and set up a payment form. The implementation process for online gambling should be carried out by the site developer, and the aggregator’s technical service should provide them with full documentation and consulting support.
Checking the accuracy of the system
Many gambling payment processors provide the opportunity to test the functionality in a test environment: the so-called “sandbox”. If it is not available, you need to perform several transactions using personal test tools. A brief list of actions for verification:
- Check for consistency of processes;
- A test to see if a message is displayed with confirmation of a successful transaction;
- Checking that confirmation is received by mail or messenger;
- Analysis of how the system behaves when a payment service fails;
- Testing the aggregator in different browsers, with and without pop-up blockers enabled and disabled, with and without a VPN connection;
- Security check (entry of inaccurate data, payment from a geographical area uncharacteristic for a particular cardholder, etc.);
- Secure connection control (transactions must pass through a secure channel);
- A separate test for each connected payment method;
- Chargeback check: how the operation is performed, what are the terms, fees, etc.
Thousands of users from different countries will visit the site every day. That is why the aggregator should support as many payment methods as possible.
How payments are processed on the site?
From the player’s side, the interaction scheme is as simple as possible. Deciding to make a deposit to the game, the user presses the “Pay” button and gets to a secure page with a choice of gambling payment. The amount after the enrollment is instantly displayed on the game deposit. To the specified contacts, the player receives a notification of transaction confirmation.
The process of payment solution is automated, it is provided by the operator. How does the processing take place on the casino’s server side? The payment system for gaming machines or casinos often provides merchants with a personal cabinet. It provides all the necessary functionality for setting up a payment page, transaction tracking, exchange, and withdrawal.
Any complicated payment solution procedures are automated: a merchant only receives notifications about completed transactions. Processing applications for withdrawing funds from game deposits may be manual or computer-assisted: it depends on the cabinet’s functionality and software. In today’s world, online gambling projects usually have a wide international audience.
Remember that you can find the most ideal payment gateway solution for gambling sites on the official Corefy page. Take your business to the next level.
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