Casinos, in particular, have seen significant expansion in the gaming sector in recent years across the globe. It predicts that this growth will increase throughout the upcoming year as well.
Over time, the need for the quick acceptance of online casino merchant accounts has increased among business owners, and the cost of these accounts has constantly been rising. More people have also shown interest in the sector as a whole.
According to Statista data – The total value of the worldwide online casino and betting market was 61.5 billion dollars in 2021. By 2028, it will reach 114.4 billion US dollars, an increase of over 86 percent.
Today, most customers prefer online casinos instead of going to physical shops. So, as a merchant, it is your responsibility to provide a pleasant payment experience to your customers. Having a casino merchant account and online casino payment gateways is essential, but obtaining a casino merchant account is not easy work. Merchant has to face many challenges.
Continue reading this blog to learn “What Challenges Casino Merchants Have to Face While Obtaining the Casino Merchant Account” and what is the solution for the high-risk casino business.
What is the casino merchant account, and Why is it Needed?
A specialized business account that connects with the casino businesses is a casino merchant account. It is just like the regular bank account but is available with reliable payment processing solutions to protect the customers and merchants.
Casino transactions run under a unique MCC code – 7995. It was designed to support all operations, excluding those using ATMs, including placing bets and buying lottery tickets, tokens, chips, and other items from casino businesses that accept cash payments.
A merchant account is essential for any online business. As the casino is high-risk, most service providers deny serving their services to these industries. So, in this situation, the merchant should look for a high-risk casino merchant account that has experience in dealing with the casino industry.
It helps merchants run their high-risk businesses smoothly, safely, and securely without any trouble. But for the casino merchant, it is not an easy task to deal with the casino service providers. Merchants will have to face many challenges, which will discuss later.
What Challenges Merchants Have to Face?
The casino sector faces a distinctive set of problems. It is crucial to study as much as possible about them so that you can use the best solutions.
Gambling Demographics –
The casino industry has changed in recent years. Do you know what change exactly happen? Well, most probably, how people play casinos online.
In 2020, nearly half (40%) of players were younger millennials and some members of Generation Z. Unsurprisingly, these young players (18–21) prefer to make digital bets, mostly on their mobile devices. But, it does not mean that the older generations have entirely given up their betting habit. Those who bet over 60 now spend more than twice as much as they did a decade earlier.
User Experience and Security –
Nowadays, every customer wants a fast, easy, and seamless online payment experience. Due to this reason, it is crucial to offer the best technology to the players in terms of placing wagers, depositing funds, or withdrawing winnings. So, as a merchant, you must look for a service provider to help you maintain security and minimize fraud risk.
Speed is crucial in online gambling; therefore, to ensure that users can quickly (and successfully) complete the checkout procedure, we’d recommend integrating 1-click payments or other checkout optimization tools. Keep in mind that Never compromise the security for users’ comfort.
Fraud Preventions –
With the increased interest in online casinos comes an increase in cybercrime. When online casino players sign up for an account, the risk of sensitive customer data increases; it is one of the most common problems nowadays.
According to the ThreatMetrix Gaming and Gambling report, 1 out of the 20 new online casino accounts is fraudulent. Perhaps surprisingly, the most dangerous aspect of online casinos is the registration and account creation procedures, which happen right at the start of a customer’s adventure.
So, as a merchant, they need to ask their service provider what features they are offering to save the customer’s sensitive data from fraud. Also, the merchant needs to look for a service provider who offers smart anti-fraud filters to protect your customer from fraudsters.
Laws and regulations –
As you know, online casino is a global business, and the European market is the most significant market for online casino. However, the European Union does not have a unified policy governing online casinos; as a result, each EU member state is responsible for independently regulating these activities.
To ensure that the rules they follow won’t become outdated, online casino merchants must keep up with any advances inside their local marketplaces. The Know Your Customer (KYC) and Anti-Money Laundering rules are particularly stringent in this regional market.
Chargebacks –
Large stakes come with a high risk of chargebacks brought on by friendly fraud. Inconsiderate players may experience frustration as a result of losses. They may even call the company that issued their credit card to deny making the payment in certain circumstances.
In this situation, the online casino merchant can almost lose positions as the law is decidedly on the customer’s side in such cases. And once the casino player realizes they are successful, they can again try to file the chargeback.
According to the online survey, the two most significant issues online company face when dealing with chargebacks are –
- Dispatching (Approx 59%)
- Friendly fraud (Approx 58%)
Nowadays, you can find many service providers whose primary focus is boosting the chargeback dispute win rate and identifying friendly fraud. Merchants also require a service provider with advanced technology and deep knowledge about the business types because an experienced service provider can easily understand your needs and requirements.
Why Choose WebPays as your Casino Merchant Account?
Nowadays, you can quickly get many service providers. Still, the most challenging work is to choose the service provider who fulfills your business requirements and offers you the best possible solutions. But, now no need to worry because WebPays is here to help you.
WebPays is one of the most popular payment service providers with lots of experience in the casino industry. Its services are available all over the world. WebPays offer many tech-savvy features, from accepting cryptocurrency to having the latest technology security tools, including anti-fraud and anti-chargeback tools. One of the best features of WebPays is that it also agrees with the local currency.
With WebPays, the merchant can hassle-free run their high-risk casino businesses without any worries. To know more about WebPays, directly contact the expert teams.
Final Thoughts –
Online casino businesses are flourishing today. It is an excellent time to invest in the casino business as it returns you more profits. For your casino businesses, you ought to need a casino merchant account.
A casino merchant account is a particular bank account designed for online casino businesses. But, obtaining a casino merchant account is not easy work as a merchant has to face many challenges. Some of the most common challenges are –
- Gambling Demographics
- User Experience and Security
- Fraud Preventions
- Laws and regulations
- Chargebacks
So, to make the casino merchant work easy, WebPays come in the field of the payment service provider. It fulfills the casino merchant’s requirements and offers the casino player a safe, secure, and reliable payment experience.
