What is important when offering gambling services to gamers in Portugal? Some will say it’s the bonus you give to the players, and others will mention the games you offer.
Without a proper way of receiving payments and making payouts, you won’t be in a position to run most of your operations. Using the banks might be a great idea, but you must understand that, like any other industry out there, you will be surprised they are skeptical about those in the gambling sector.
The chances of your online merchant account getting approved might not be as high as you think. However, you will find it easy when you avail the right documentations alongside going through an experienced corporate provider.
We linked up with one of our experts Victoria Oliveira (check profile), to elaborate more about a gaming merchant account.
What you need to know about a gambling merchant account
A gambling merchant account refers to a credit card processing account. It mainly serves online gambling companies. To make the operations of the casino move smoothly, there must be a circulation of funds.
Through the gambling merchant account, all that becomes possible. The account allows deposits and payouts to happen the way they do in the casino Portugal site. It gets linked to a payment process integrated within the system. Even though gambling payment processing is mostly treated as a risky affair, some companies have diligently undertaken the role.
What is the necessary documentation?
Having a merchant gambling account may sound complex if you don’t know about the needed documents and other essential requirements. Here are some of them that you need to be aware of.
- Valid Government documentation
- Voided check
- An EIN or SSN
- Three recent processing statements
- Applicable licensees when needed by the gambling commission
- Three bank statements
Is Gambling Merchant Account a High risk?
Even though the Gambling Merchant account is beneficial, it’s considered a high-risk venture by most banks. Here are some of the reasons:
- They have a higher turnover. Higher turnover means many things to the processor. But the one that stands out is that it puts the processor at high risk.
- Despite the close regulation of the online gambling industry, the financial institutions in Portugal are yet to buy the idea. They believe that there are still potential threats to their systems and processes. As a result, they shy off from offering the needed services and those allied to the Gambling Merchant account.
- If you are in the online gambling business, you will confirm that they are prone to high online casino chargeback and refund rates. That puts the processor at risk when processing credit card payments.
- You risk having your merchant account terminated when your business cannot keep a less than 1% chargeback ratio. Processors don’t want to cover any balances that the gambling platform cannot shoulder.
- Money laundering and other forms of fraud keep raising concerns among the game business hence putting them at risk.
What you need to know about chargeback ratios
Among the risks that you have to be ready for is the termination of your merchant account. That will happen if you have excessive chargebacks in the account. The providers are keen not to cover any money that the business cannot cover.
As such, they will have no other option when the chargebacks go higher except to terminate. The revenues earned in the industry by the processors aren’t enough to cover other businesses’ liabilities.
To prevent the chargebacks from going high, the businesses should record every transaction between them and the customers.
That will make it easy to track the expenses and help manage any extra costs, even if you use the gaming broker. Some of the other important details include the customer’s IP address, date, and transaction time.
Do you need Gambling payment processing?
You might not know whether you will need a gambling payment processor until you realize that you need it. But the bottom line is that the payment processing system will help you receive and make payouts. Therefore, it will remain fundamental in your business. Therefore, it’s undeniable that you will need a gambling merchant account in Portugal.