According to Statista, the global digital media market shows no signs of deceleration in growth. Gaming holds the largest share of the market’s revenues. The global online gaming market has produced close to $21.1 billion in revenues. This demonstrates a record growth of 21.9 percent from the year prior.
The demand was amplified as a result of the worldwide outbreak of the COVID-19 pandemic that forced millions of people to stay home. During this incredibly isolating period, many turned to digital forms of entertainment as well as finding new, virtual ways to connect with other people.
At present, there are an estimated 1 billion online gamers around the world. China, Japan, and South Korea dominate the gaming market. By 2025, online gaming audiences are predicted to exceed 1.3 billion.
Why Are Online Gaming Businesses High Risk?
For many years, the gaming industry has been plagued by high incidences of chargebacks. Just the risk of chargebacks alone is enough for this industry to be labeled a high risk business. In addition, the online gaming space is known for facing many regulatory and compliance-related roadblocks.
Due to stringent regulations within the United States, numerous online gaming businesses have set up shops overseas. This has attracted serious problems such as money laundering and fraud. Also, since they are based offshore, it’s trickier to track down the money, further complicating and elevating the potential risk for processors.
In order to navigate these increasingly choppy regulatory waters, it is best to reach out to a reputable payment service provider.
The Benefits Of An Online Gaming Account
There are many benefits to acquiring an online gaming account, for both the customer as well as the merchant. Here are just a few:
- No foreign exchange risk
- No set up fees with quick approvals
- Customers able to pay in their home currency, expanding your customer base
- Chargeback protection as well as prevention programs
- Real-time reporting tools
- Detailed overview of all types of transactions
- Complete fraud prevention tools
Tackling Chargebacks Head On
Before a high risk merchant begins the search for a reputable high risk merchant account provider, it is best to address chargebacks. The first line of defense is to implement key fraud prevention tools. These can include two-factor authentication, device fingerprinting, tools that utilize machine learning, and velocity checking.
There are also proven red flags that should be watched with great vigilance. Be aware of any orders that originate from countries where credit card fraud is rampant. Also, look out for uncommonly large orders or out of the ordinary for your business. And finally, several failed order attempts from the same IP address are another firm indicator that the card being used is actually stolen.
How To Apply For An Online Gaming Account
There is no doubt that online gaming is an-ever growing, lucrative business. However, its risky nature does cause banks to refuse merchant accounts in order to avoid liability.
The key to attracting the attention of good, solid online gaming merchant account providers is to maintain a chargeback rate below 1%. By choosing the right provider you can enjoy the benefits of having competitive rates, no application fees, and the choice of multiple and secure payment gateway options, just to name a few.
It is just a matter of making an initial inquiry either online or by phone. A representative can orient you on what specific documentation you will need before you submit your completed application.
Get Started Today
Do not let the regulatory and compliance measures intimidate you. Many reputable online gaming merchant account providers specialize in this high risk vertical so that you have the most up-to-the-minute information. Let them handle all of the complex regulations so you can pour your focus into your customers and your business’s needs.