If your sports betting business becomes successful, you can expect to earn handsome profits and attract a loyal customer base in this highly competitive industry.
But needless to say, you need to have a solid infrastructure that enables you to accept sports betting payments via the methods your customers prefer without sacrificing efficiency or security.
A word about high-risk merchant account providers
If you did not already know it, here’s a news flash: Your sports betting site will automatically be deemed to be a “high-risk business” by financial institutions in the payments processing sector.
It has nothing to do with you personally, and you will be given this designation even though everything you are doing on your website is 100 percent legal.
That’s because online gambling puts the company processing your payments at additional risk of taking on added expenses. Customers regret their bets and dispute their credit card payments; the industry is highly regulated, which costs more money to oversee.
What’s more, online betting sites themselves can go out of business, leaving the payment processor holding the bag.
High risk merchant account companies absorb this extra risk – at a cost. But although you will pay additional transaction and monthly fees and may undergo additional scrutiny during the application process, you also gain from the relationship.
The high risk payment provider meets your special needs with dedicated, industry-specific customer service, pre-established relationships with gambling-friendly banks and added security and chargeback protection services. They also enable you to take bets using the top sports betting payment methods.
Credit cards
Online betting sites use secure payment gateways to accept and transmit payment details. Credit cards, including Visa, Mastercard, Discover and Amex, continue to be the most often-used method for taking deposits.
Everyone has one or more of these cards and is familiar with their online use. In terms of withdrawals, you will want to create your own branded Play+ card that can be funded with the types of credit cards listed above.
E-wallets
Digital wallets allow customers to store payment details securely on their smartphones or personal computers. When making a bet, they simply indicate that they want their payment to be accessed by providers such as PayPal, Neteler, Skrill, Apple Pay or Google Pay.
After verifying their identity, the wallet provider transfers the money from the customer’s connected account into yours.
Alternative payment methods
You might also decide to allow your customers to pay via an e-check, otherwise known as an ACH transfer. Just keep in mind that many banks avoid gambling transactions, and others take longer to process betting-related payments.
Not so long ago, sports betting suffered from a less-than-rosy reputation. However, it has become widely accepted in recent years, paving the way for online gambling sites like yours to flourish.
Devote time and effort into creating a strong payments infrastructure, and your operation can succeed in this volatile but exciting industry.
