All-In-One Guide To a Casino Merchant Account
Merchants have many existing and new doubts about a casino merchant account, and it is best if they can immediately clarify it with relatable reasons. Ignorance is a big reason behind many wrong business decisions and poor merchant account management. The merchants who are still in the mid of the journey to find a suitable merchant account needs to be double sure about the information they have. This blog is an all-inclusive guide to all the relatable factors that reveal enlightening information about a casino merchant account. From the basic essential information to the troubleshooting tips on the casino account, related issues have been addressed in this blog.
What is a Casino Merchant Account?
A casino merchant account is a trading account that connects to a casino website. It differs from a conventional bank account because a merchant account is specifically for high-risk businesses like casinos. These accounts have a specific Merchant Category Code. Casino MCC code is – 7995.
How To Get a Casino Merchant Account?
You must apply to an acquiring bank (the merchant account provider) to get a merchant account. The underwriters take the first look at your business because they want to know whether you, as a merchant, are running a legitimate business or not. A casino’s reputation is also the focus of the merchant account providers.
Multiple factors are considered to know that the casino merchant is not taking any unnecessary risk. Here is the list of those factors.
- Credit card processing history
- History of the chargeback (High chargeback ratio in history may cause rejection)
- Unpaid commercial bills and late payment of other obligations
- Negative bank account balance
- Credit score
To get approved for your casino merchant account without hassle, keep a considerable balance in your business account. Pay all your bills and debts on time and keep a hold on the chargeback percentage. Anything more than 2% chargeback can be harmful. Lower are the risk factors; higher are the chances of your merchant account approval. If you fail to do so, even a casino payment gateway may not want to work with you.
How To Reduce The Casino Chargeback Ratio By 25%?
A higher chargeback ratio has always been a big reason for the failure of an online casino. The account can get suspended even if a merchant has qualified for a merchant account but fails to maintain a low chargeback ratio. It is among the worst nightmares of a casino merchant. But don’t worry, there is a simple way to reduce the chargeback issue by up to 25%.
A chargeback mitigation program is the best way to reduce your chargeback issues by up to 25%. It means one-fourth of all your chargebacks will be reduced through a strong mitigation strategy.
Tips to reduce chargeback through mitigation policy –
- Lower the acceptance of unauthorized transactions
- Challenge illegitimate chargebacks
- Eliminate chargeback triggers such as merchant errors
- Identify the source of chargeback
Benefits of An Online Casino Merchant Account
You already know the benefits, but it is good to count them one by one because you may not have considered some of the advantages. Here is a list of the plus points of having a casino merchant account. In light of the benefits, you will also get to know why a merchant account is so vital for a casino business.
- Merchant accounts facilitate safe transactions which helps prevent financial fraud.
- A business can connect to renowned international payment gateway providers.
- Electronic processing and multi-currency transactions have become easy.
- Timely analytical reports help merchants make better business decisions.
- Offshore casinos can make a broader reach to the customers of varied locations.
How Do Tariffs For Casino Merchant Accounts Work?
MDR, which stands for Merchant Discount Rate, is the most crucial charge or tariff a merchant needs to pay. 4% MDR rate is usually considered an idol number for a casino business. The list of tariffs also includes conversion fees, refunds, transaction fees, etc. Payment gateways keep a part of the funds, called rolling reserve, to reduce the risk they take for a high-risk casino merchant. The tariffs depend a lot on multiple factors. The reputation of the business, reviews by the customers, chargeback ratio, processing history, monthly, annual transaction value, and credit score.
Conclusion
Casino merchant accounts are not complicated anymore to handle because the advanced FinTech tools make everything easy. The merchant account and payment gateway duo ensure a safer and smoother payment experience for casino customers. When players are happy, the merchants can relax and focus on other aspects of business growth. If you have a suitable merchant account, it becomes simple to exploit the opportunities present in the industry. With no stress on payment processing and the safety of customers’ financial data, the business can keep moving towards actual growth faster. Proper research on the best merchant account provider should take you to suitable options.
