Gaming businesses have become a big part of the online gambling industry. These operations offer various types of gambling like casinos, sports betting, virtual bingo, online poker, and mobile games. More often than not, banks consider these businesses to be risky for a few reasons. For instance, they conduct a lot of transactions in short periods.
Additionally, they often operate from other countries, and sometimes, people use them for illegal activities like money laundering. It is also worth noting that the things they sell can lead to customers asking for their money back, which is bad for the companies that process the transactions. Plus, some of these gaming businesses are new and don’t have a track record, so they might not be able to pay back the money they owe.
But even though they’re seen as risky, there are companies, like Pay.cc, that can potentially help these gaming businesses with their money transactions. Sure, there may be some extra costs, but in the end, they allow these gaming businesses to make a lot of sales, which is crucial.
Why Gaming Businesses need a High Risk Merchant Account
Gaming businesses are known for handling a lot of transactions each month and year. As mentioned earlier, regular banks and financial institutions can’t offer them accounts for their everyday transactions. These regular banks just can’t handle processing such a large number of transactions. This is where high-risk gaming merchant accounts come in – they’re provided by organizations that specialize in serving businesses like these.
For any business that deals with a lot of transactions and operates in a high-risk category, having a merchant account is vital. This special account is like the backbone of these companies. Because they deal with such a huge number of transactions, they require high-risk merchant processing. Traditional banks can’t really support this kind of processing. In fact, it’s not even a rule that regular banks have to handle payments for businesses that deal with so many transactions.
Potentially Preventing Chargebacks
In the world of gaming, the product isn’t something you can hold, like a physical item. This makes it more likely that there will be cases where customers ask for their money back or dispute the charges. One common type of dispute, known as friendly fraud, happens quite often with igaming payments. To tackle this issue, a high risk payment processing gateway comes into play. It helps business owners fight against false claims of refund requests.
In today’s business landscape, being open and honest is key to gaining customer trust. This transparency can also be used as a shield to protect the rights of the business owner. For instance, sometimes, gamers might see a charge on their bank statement and not remember making that payment. They could then ask for their money back. However, that charge might actually be from a gaming subscription they signed up for. The lack of clear information about the transaction leads the customer to demand a refund.
This is where tools like email invoice descriptors come in handy. These tools help business owners prove that they clearly mentioned the product and company name when the customer made the payment. The invoice descriptor includes details like the company name, the amount paid, and the product name. With this information, merchants can strongly refute any false chargeback claims.
Safeguard Against Frauds
High risk payment processing accounts like the ones at Pay.cc come with a strong system that follows important rules known as PCI-DSS standards. These rules help merchants stop people from using their services for illegal money activities, like money laundering. But even with this strong system, the issue of money laundering is still significant. However, banks that process these transactions have come up with smart tools that use artificial intelligence to catch suspicious activities.
The gaming industry has always been a target for money laundering. One reason is that there aren’t many rules and controls in place, making it easier for merchants to get involved in these activities. Bad actors look for these weaknesses to sneak into the system. Some gaming merchants even let players hide who they are, and hackers take advantage of this to steal identities. There’s also a problem with the use of two types of currencies: convertible and non-convertible.
Convertible currency is money that can be easily exchanged in the foreign exchange market. Non-convertible currency, on the other hand, can’t be traded in this market. Another way money laundering happens is when hackers steal credit card information, log in without needing extra verification steps, and then use the stolen data to buy things in games.
Thankfully, many companies that offer gaming merchant accounts and special igaming payments systems for high-risk situations work hard to keep their networks secure and catch any illegal activities. All of this highlights the importance of signing up with a high risk merchant account like the ones at Pay.cc, making sure that gaming companies can operate without hiccups.