Not so long ago, gaming and gambling took place in government-sanctioned locations. Clients paid for the privilege of playing their games of choice or placing bets with conventional payment methods that were also approved and regulated by the state.
Today, however, the success of casinos and other gaming sites has undergone a revolution that has changed everything about how customers play and pay.
The catalyst.
As with virtually every other business, the widespread embrace by customers of the internet transformed gaming. It went from an endeavor based in physical casinos into a multi-faceted and vastly successful behemoth of brick-and-mortar and virtual locations.
Although states were initially reluctant to make cyber betting and gaming legal, the trend is now reversing. This is most likely because financially strapped governments are realizing the potential to make millions each year in taxes from these types of websites.
However, those wanting to enter this potentially lucrative sector had a problem. They needed to find secure, reliable ways to get paid, and conventional financial institutions were wary of aligning themselves with the industry.
It was then when payment processing for gambling businesses was born.
The high-risk categorization.
As we stated above, betting and gambling sites exist within a volatile industry. Because of the nature of the clientele and the services you provide, you are likely to be hit with more funds reversals, also known as chargebacks, than normal.
What’s more, instances of fraud are elevated. Combine that with the strict regulations binding the sector that require extra resources for compliance, and it is no wonder that conventional financial institutions give the gaming ecosystem a hard pass.
Fortunately, the market has responded. You can now obtain a high-risk payment processor who is fully equipped to partner with your gaming website and help it to thrive.
A friendly word of warning.
While it is true that there are now plenty of payment processing options for gaming businesses, they do come at a price. You can expect the application procedure to be longer and require additional documentation.
What’s more, you will be required to pay higher per-transaction fees and may also have to live with extra charges and contractual obligations.
The benefits of high-risk payment processing companies.
Don’t despair though: These high-risk companies also come with advantages for specialized businesses like yours. For one thing, a careful search for the best one will enable you to work with a provider that has a demonstrated expertise in the gaming sector.
This means that they understand the complex web of regulations surrounding the industry and can help you to navigate them. Also, they recognize the unique security challenges you face and have the knowledge and experience to help you minimize your risk of becoming the next data breach victim.
The gaming industry continues to evolve and prosper.
Although there is no way to predict where it will be just a decade or two from now, one thing seems sure: Secure and reliable payment processing will continue to be vital.
