Are you in the iGaming industry? If yes, then you might find it challenging to find a payment gateway that will allow you to get payments from your customers. This might seem like you are the only one dealing with this problem but there are a lot of business owners in this particular industry that had to go through the same problem.
So, what are the possible reasons that you might find it difficult to get a payment gateway? In this article, we’ll delve deeper into the factors that make it challenging for your online gaming business to find a payment gateway. On that note, without further ado, let’s get right into it.
The High Risk of Fraudulent Activities and Issues Surrounding KYC
One of the major reasons why you might find it hard to get a payment processor is due to the risk of fraud and Know Your Customer (KYC) issues that are quite common in the online casino and iGaming industry. If you are new to the industry and just starting your business, then it is important for you to understand the impact of KYC and AML (Anti-money laundering) protocols. There is a lot of money that is going in and out of the bankrolls. As a result, it becomes an easy opportunity for fraudsters and money launders to use it for their illegitimate activities.
In addition to that, fraudulent accounts and identity/card theft are also major problems that casino and gambling websites have to face on a day-to-day basis. These issues related to KYC and AML compliance with the high risk payment processing makes payment processors hesitant to offer their services to businesses in that sector.
Excessive Chargeback Rates
Another major reason why a lot of payment processors also don’t want to provide services to businesses in the iGaming sector is the excessive chargeback rates. To give a brief overview, the chargeback refers to the act of disputing the transaction from the customer’s end. There can be a wide range of reasons that the customer might dispute the transaction, such as duplicate charges, fraudulent charges, etc.
This makes the iGaming and online gambling sector a high-risk one. As a result, high risk payment processing companies might not be comfortable with providing their services to such businesses. However, there is a wide range of reliable and trustworthy high risk payment processing companies, such as Pay.cc that can cater to the needs of such businesses.
A Higher Website Traffic
Online gambling sites and iGaming platforms might receive a lot of traction. This is because their market base is not just limited to one particular geographical location. Therefore, they might be receiving a high amount of website traffic. Plus, the amount of transactions can also be high which is something standard in the online gambling industry. As a result, it can be challenging for high risk payment processing companies to handle and monitor all the transactions.
This means that it could lead to issues related to KYC or AML compliance. They might have a hard time finding instances of fraud. Not only that, payment gateways might also get overwhelmed by the high number of transactions that are happening on the gambling site. All in all, this becomes another reason why high risk payment processing companies are hesitant to cater to iGaming payments.
Regulatory Barriers
Last but not least, the major challenge that comes across high risk payment processing is the regularity barriers set in this industry. There is no doubt that online gaming and online payments are both heavily regulated. And that is not all, the payment gateway providers would have to meet their requirements which would be different from one country to another. All these things can make it difficult for payment processors to facilitate businesses with their transactions.
The challenging aspect of this whole payment procedure is that the varying regulations and requirements can have a deterring impact. This problem, coupled with issues related to KYC and AML, along with high chargeback rates makes it difficult for payment processors to facilitate businesses in this sector. There are some other issues with a business in the iGaming industry that might make it difficult for the payment processor to provide services to that particular business. However, the reasons mentioned above are some of the most common ones why it can be challenging to get a payment gateway for your online gaming business.
Final Words
The article aims to provide you with a comprehensive idea regarding why it will be difficult for you to find a payment processor for your iGaming business. However, there are many options available in the market and you can search for a reliable iGaming payment gateway. With the right iGaming payment processing partner, such as Pay.cc by your side you won’t have a hard time in accepting payments from your customers.