Posted by admin on Mar 30, 2021


Online Gaming Merchant Account

With almost every other gambling website introducing app-based gaming, credit and debit cards have become the natural method of payment in the online gambling industry. This is where online gaming merchant accounts come in.

Over the past few years, and especially during the pandemic (where folks had more time on their hands), the use of online gaming and casinos exploded. In fact, global online gaming traffic hit a whopping 565 petabytes in 2020 alone.

The thriving online gaming market is set to grow to a cool $2.14 trillion market space. So, for those who are already in or plan to enter the online gaming niche, there’s never been a better time to dabble your toes in an industry that’s flourishing.

While the online gaming industry is a lucrative one, to say the least, traditional banks and financial institutions tend to keep their distance, and for good reason. Legal issues and high chargeback ratios are only some of the issues that keep banks at bay. Those operating in the gaming industry tend to process a large volume of payments, which is especially the case for established gambling websites. For the fast and efficient processing of credit card payments, gambling websites require online gaming merchant accounts for MMO, online casinos, and even MMO.

US and International Online Gaming Merchant Accounts

Credit and debit card merchant accounts are available for both US and international online gaming sites.

International online gaming merchant accounts are readily available for Europe, Curacao, and other jurisdictions. Online gaming is legal throughout most of Europe and many other parts of the world. 

To qualify for a US online gaming merchant account, companies need to comply with legal requirements.  For the most part, the US leaves it up to the states to make decisions about whether or not gambling is legal within the state.   

The types of betting allowed vary by states.  For example, New Jersey allows betting on horse races, sports betting, and casino games. In Washington, horse race bets are allowed, yet other sports betting are not. 

Some states permit certain types of gambling yet not others. Gaming related products such as sweepstakes, lotteries, and contests must comply with various laws.  Laws are often modified or updated by th states or the US government.  Fanatasy sports betting are allowed in most states. 

Payment processing can be provided to all US gaming merchants who are operating legally.  The best advise to to discuss the specifics of your online gaming offering with your legal team prior to applying to your online gaming merchant account.

The Application Process

Online Gaming Merchant Account
Online Gaming Merchant Account

Now that you know why online gaming merchant accounts are so important, the next step is finding out what you will need during the application process. To obtain online gaming merchant accounts, all a business is required to do is fill out the merchant account provider’s online form. The merchant account provider will also need the following information for the underwriters and processors:

  • A government-issued ID (driver’s license, etc.)
  • Processing history (3 months for US; 6 months for international)
  • Bank statements
  • Licensing information
  • Financial statements for high volume online gaming merchants

When applying for online gaming merchant accounts, it is important to make sure that the gambling websites’ chargeback are in line with the ratios required by the card brands.  ACH and echeck payment processing is also available in additona to card payments.  The more ways players can pay you, the more sales you make. 

Whenever an online gaming site or casino applies for their merchant accounts, it is the duty of the underwriters and processors to find out if the online casino or gaming site is legit. There are many factors that underwriters consider to ensure that the credit card processors are not going to take on any unnecessary risks.

The following are some of the factors that underwriters consider as high risk:

  • A history of credit card transaction disputes
  • High chargeback ratios
  • Suspicious bank statements
  • Having a bad credit scores and credit card processing history
  • Negative bank account balance
  • Overdue bills and payments

All of the above are red flags that underwriters and processors look for before giving online gaming merchant accounts the green light.

Online Gaming Merchant Accounts Fees

There’s no such thing as a free lunch, and the same goes for online gaming merchant accounts as well. The good news is, the fees an online gaming company pays will be contingent on multiple factors. Also, since every online gaming merchant account provider follows its own rules, it is possible to find one that will offer you the services you need at an affordable rate.

The following are some of the typical fees that are charged by gaming merchant account providers:

  • Monthly statement
  • Refunds
  • Discount rate / transaction fees
  • Rolling reserves (if required after underwriting)
  • Chargebacks

Make Your Online Gaming Site Stand Out

So, now that you know what goes into getting online gaming merchant accounts, it’s time you stopped going the conservative route with traditional banks and got ahead of the curve with online gaming merchant account services. Since gambling is considered to be a high-risk-high-reward industry, it pays for online gaming companies to get their merchant accounts approved and ready to accept payments from their clients in real-time.

PaynetSecure is at the forefront of high-risk and high-volume credit card processing for merchants worldwide. Payment processing services are available both within the US and offshore; all you need to do is drop an email to