MCC Codes, short for Merchant Category Codes, are four-digit numbers that are used to categorize…
Online casinos depend on credit card payment processing for their survival. Credit card payments allow gamblers to instantly deposit money into their virtual casino accounts without having to wait for a check to clear.
However, many credit card payment processors do not accept merchant account applications from online casinos. They consider any casino business to be too risky because some gamblers tend to dispute their casino deposit payments after losing them at gambling.
Therefore, it will be a vigorous and lengthy process to get approval for an online casino merchant account. Fortunately, there are payment service providers who specialize in this. You will learn that as you continue reading.
Why Start an Online Casino?
Online gambling is a growing industry. Despite all the gambling regulations and legislation passed in recent years, people continue to gamble online in large numbers. Tough economic times don’t even stop people from gambling. In fact, it makes people more eager to gamble because they want to win a lot of money.
Casinos have always been highly profitable businesses, whether they’re online or physical casinos. But don’t assume you can open up an online casino and see the money start rolling in quickly. There are a lot of backend procedures that you must follow.
For instance, every online casino must acquire a significant amount of financial backing and support. Otherwise, it would be impossible for a small or medium-sized online casino to survive. Getting financial support is difficult because banks and lenders consider online casinos to be “high-risk.” Again, that is why payment service providers don’t want to accept online casino merchant accounts either.
If you’re lucky to get approved for an online casino merchant account, you’re not out of the woods yet. Sometimes these payment processing companies will authorize a high-risk merchant account but will quickly restrict or close the account if any suspicious activity is recognized. There could be legitimate payment transactions that get marked as suspicious in the system too.
If there is even one chargeback on a credit card payment, your account is likely doomed. Maybe it could survive a few chargebacks if you’ve received dozens of other payments that were successful. The worst part is that all the money in your merchant account can get frozen if it gets shut down.
Other payment processing companies might not be as strict toward online casinos because they will charge them outrageously high service fees. But at least you’d get a cloud payment gateway and merchant account for your casino. These high-fee accounts could be your only option until you grow your online casino and make it recognized. But don’t expect to have a lot of cash flow if you’re forced to pay high fees.
Use a High-Risk Merchant Account
When you’re ready to start your online casino, you can save yourself plenty of time and frustration by avoiding traditional payment processing companies altogether. You don’t want to risk having your merchant account frozen because the company has limited access to your funds over some bogus claims.
Look for payment processing companies that offer high-risk merchant account applications. Approval will happen relatively quickly, but the fees and expenses will add up as well. They are unavoidable until you can establish your casino’s reputation on the internet and get traditional bankers to trust you again.
Apply for a Low-Fee Online Casino Merchant Account
Did you know that low-fee high-risk online casino merchant accounts exist? That’s right. Through our global acquiring network, we can offer you a low-fee high-risk merchant account for your online casino business. We’ve gotten approvals for merchant accounts for hundreds of companies associated with the highest risk industries such as adult entertainment, CBD, gambling and tobacco. Our rates are the lowest for merchant accounts in the gambling industry.