Why Your Gaming Company Is High-Risk And What To Do About It

Apr 12, 2021

According to Newzoo’s findings, by 2023, it is estimated that the global gaming market is set to exceed $200 billion. Since the COVID-19 lockdown, interest in online gaming has only surged. With a sudden influx of new gaming customers, revenue has escalated significantly. The market is definitely ripe for continued growth and gaming companies are beginning to see the great advantages of taking part in this trend. 

The biggest issue plaguing the industry is the security of customers’ data. As payment fraud continues to rise, many customers are still leery of providing their personal account information when they are making a purchase. 

Customers are more likely to make a purchase if they know with absolute certainty that their information is both safe and secure. The best investment that an online gaming company can make is to seek out a reputable and trustworthy high risk merchant account to securely process their payments.

Why High Risk?

Why would you need a high risk merchant account? Why is your business, an online gaming business, considered high risk? The reasons are the following: it has a high-volume turnover, there are age restrictions, diverse global laws, and significantly higher instances of chargebacks. 

Knowing that is how things stand, it is best to not waste time seeking partnerships with standard, low-risk merchant account providers. They will reject your high-risk business from the outset. Very few standard merchant account providers will do business with high risk industries. They simply don’t want the risk. 

Instead, seek out the expertise of high risk merchant account providers. Specifically, look for those that are familiar with both the gaming and gambling industries. This will ensure that your account won’t be abruptly terminated. 

How To Apply For A Gaming Merchant Account

Applying for a gaming merchant account and cryptocurrency payment options is pretty straightforward. However, there are specific criteria that you would have to adhere to not only to acquire but to remain in good standing with your provider.

A few of the items needed to begin the application process are as follows:

  • The application form
  • A copy of your gambling license
  • The registration certificate of your company
  • A Good Standing certificate
  • An official document, such as the M & A
  • Provide a Register of Shareholder and Directors in the last 3 months and signed by the director of the company

You will also need to submit an estimate of how many transactions you will expect to have every month, average value of every transaction, and where your cardholders will be based. 

This is just a glimpse of what could be requested by your provider. Of course, it will vary based on the provider and the type of business you run. 

Once everything is processed and you are approved for an account. This is only the beginning. The greatest challenge lies ahead as you will battle to ensure that your chargeback ratio remains below the limit as explained by the provider. You must also be sure to provide full refunds if customers issue a dispute against your business. It is crucial to provide top-level customer service. Keep communication lines open to avoid any disputes before they start. 

It Doesn’t Have To Be Difficult

Applying for a gaming merchant account may seem daunting and complex at the start, however, it does not have to be. If you arm yourself with all the necessary criteria and set up your business in a way that makes disputes unnecessary, you will already be ahead of the game.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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