Accepting payments from players converts the fantasy into real money for fantasy sport site owners. Cards and echecks are the best payment options.
There’s no doubt about it. Fantasy sports are big business. Last year, 33.5 million Americans participated in fantasy sports.
Consider these statistics on the demographic of players::
Players are educated, have money to spend and are committed to playing. That represents a big opportunity to you.
Certainly, every fantasy sports site owner needs to accept credit and debit cards as a payment option. Establishing merchant accounts is easy to do.
Fantasy sports leagues are considered more skill-oriented than luck based. This moves the industry from its previous high risk online gaming classification into a more standard risk category.
While some banks still will not underwrite the accounts, there are some acquiring banks that are targeting the industry. The growth curve and the potential processing opportunities is attractive.
Yet, there are fewer processing choices for fantasy sports than for standard risk merchants. Despite the move into the mainstream, fantasy sports sites still are classified as high risk.
For fast growing companies, it is wise to establish multiple merchant accounts and load balance all accounts on a single payment processing gateway. Diversification of processing is the key to protecting the cash flow of your business
Depending upon one acquiring bank is too risky. Even if a bank loves the business today, underwriting guidelines change, banks merge, or a bank can even decide to exit the merchant processing business entirely.
Electronic checks allow you to capture sales from customers that do not have cards, are maxed out on cards, or who simply prefer to by with a direct debit from a bank account. It’s simply smart to accommodate as many payment options as possible. More ways to pay equates to more sales for you.
Echecks are particularly effective if you offer recurring or subscription billing. Players seldom change bank accounts, which assures continued cash flow from recurring payments.
Compare this with cards where one in five is replaced each year. Merchants have to obtain updated billing information from customers in order to continue billing without interruption.
eChecks can be processed through the ACH network or through Check 21 image exchange. The decision on which to use depends on the specifics of your company. Experienced representatives are available to discuss the choices with you.
The ability to accept payments from players is vital to the success of fantasy sports sites. Yet, fantasy sports are considered high risk by banks and payment processors, making it challenging to find a merchant account.
Still, fantasy merchant accounts for card processing are available at attractive rates. With high volume growth capacity that is often required by the industry.
Add alternative payment option such as echecks to you checkout page. The more ways players can pay you, the more sales you will receive.
Searching for a fantasy merchant account?
Contact firstname.lastname@example.org today.