Gaming Merchant Account: Why Is Your Gaming Business High-Risk And What Can You Do To Get An Account Approval?
The global subscription-based gaming market is expected to grow to USD 14.71 billion by 2027. The gaming business is always on a boom, and its future seems bright. But as you know, for the gaming business, it is a bit complicated to receive payments from its players. It needs a merchant account that can be difficult to attain due to the gaming business’s tag of ‘high-risk’. The merchant account service providers usually hesitate to consider the merchants from this industry, and there are many reasons for that.
Gaming Merchant Accounts Are Smoothly Attainable Nowadays
Fortunately, with the change in time and due to the unprecedented growth of the gaming industry, merchant account attainment is not rocket science anymore. Yes, several service providers with specialization have practical gaming merchant account solutions. If you are a gaming company owner, you can buy a merchant account with some attention to the detailed documentation of the process. But before that, it is vital to explain why your business is high-risk because some merchants have confusion about it.
Why Your Gaming Merchant Account And Business Is High-Risk?
Many reasons and factors bring a company or a business type under the category of high-risk. Accordingly, the gaming merchant account for such business is called as a risky business account. Following are the factors to clear your confusion about why your gaming company is tagged as high-risk?
Your Business Field May Be a Problem
When it comes to gaming, some businesses associate it with gambling, which naturally becomes a sensitive topic. You know that there is no need to mention that gambling invites people from various financial and personal backgrounds. However, gaming is also about simple children gaming, but a vernment knows that a company may later associate it with gambling in business expansion. It is why getting a merchant account for a gaming business can be tricky. But with the right attitude and fulfillment of legalities, you can quickly get it.
Your Business May Have Some Age Restrictions
It also becomes a big reason to tag your business as high-risk. The products and services with age limits always have something that can be inappropriate for the younger generation. In that case, you cannot just get any conventional business bank account to receive payments from your customers. A professional high-risk merchant account is vital that is provided by an acquiring bank which can be in some other country. Besides, when your company grows to many other countries, various governments have varied strict rules on the businesses with the need for age restriction.
Your Company Is Prone To Chargebacks
Chargeback is always a big concern of the merchants. The gaming businesses are prone to higher chargeback percentages, as high as 3% to 4% of monthly transactions. It is not a good sign for any business. To get a merchant account, a merchant must do something to reduce the higher amount of chargeback. An acquiring bank that provides merchant account service always looks keenly into your chargeback history. At least six months before you apply for a merchant account should show a controlled chargeback percentage of 1% or a maximum of 2%. Anything more than this can be a big problem for your company. Eskaypay a merchant account provider and payment gateway company, suggests ways to reduce chargebacks. It drives attention to the loopholes of your business that may cause a rejection of the merchant account application. Fix them at the right time, and approval is a possible thing.
Recurring Subscriptions Are Also a Responsible Factor
In gaming, primarily subscription-based gaming, people subscribe to varied services repeatedly. They do that weekly or monthly, which makes a business prone to chargebacks and fraud. The customers may ask for money back if they realize that the transaction has gone wrong. Also, sometimes, when a merchant debits the money from the customer’s account, the transaction may remain incomplete due to insufficient balance. Besides, fraud happens when people try to pay on your business website with the wrong details. Also, fraud people can steal the credit card identity or any other information to purchase on the website. When the actual customer realizes it, he can raise a chargeback demand. In simple words, recurring subscriptions can also be a significant factor that tags a business as high-risk.
What Can You Do To Get a Merchant Account As a High-Risk Gaming Business?
Yes, the solutions are always there for your problems. Don’t worry; some simple steps and changes in your business strategy can undoubtedly make a difference.
- Chargeback Management Is Necessary – Every high-risk business should have control over chargeback occurrence. A merchant needs to display the chargeback policies clearly on the company website. Another critical step is implementing the 3D secure technology to make your customers responsible for their payments because friendly fraud is also a big risk for gaming businesses.
- Clarify Your Location And Legal Existence – Your merchant account provider will always like to know how legal your presence is in the market and your office location. The more confidently you display such information, the more are the chances of merchant account application approval.
- A Transparent Contract System With Customers Works Best – Your customers should know what they need to expect when they visit your website. They will have to sign an agreement. Merchant account providers find it impressive when you mention your gaming operations.
Conclusion
You should never think that getting a merchant account for a business with high-risk factors is impossible. After all, the merchant account service providers are made for this purpose only. You need to find the right option and manage your business, especially the chargeback and fraud incidents. Speedy transaction is also an important requirement for getting a merchant account. An international high-risk payment gateway can easily fulfil this requirement. The gaming industry is a progressive industry and earns a big profit. With good management, a business can quickly access a merchant account.
