Gambling Merchant Accounts – 10 Points to Ponder

Choosing a gambling merchant account, much like choosing any other merchant account or online payment gateway, requires a good deal of thought and consideration, as the main purpose of an Internet payment gateway is to ensure the safe and secure transaction of funds between an online service provider and a client.

There are a multitude of merchant accounts to be found on the Internet today, with some of them choosing to handle transactions for specific online businesses, while others choose to handle all forms of online businesses that require a payment gateway. Certain forms of businesses have been classified as “high risk”, primarily because of some aspect of the business.

A high risk merchant account is usually defined by factors such as type of industry, credit history, processing history, average ticket, monthly processing volume, and location of business.

Businesses that are considered high risk include adult content, pharmaceuticals, gambling, magazine subscriptions, streaming or downloadable content, dating services, travel and travel related services.

Here are some pointers to consider when looking for a viable gambling merchant account provider:

1. Make sure to do a market research. Talk to someone who has spent years in the business, you can learn a lot of important things from them.

2. Be sure to check the big numbers, cancellation fees, and most importantly, the hidden fees up front. A merchant account provider who really wants to do business with you will at least try to work with you to adapt to your capabilities.

3. Be sure to compare the different discount rates offered by the various payment processors. There will always be a merchant account provider offering good services online with a much better rate than others.

4. Be careful about advertisements that can be misleading or appear suspicious. If they lie on their ads then most likely they will do the same to you.

5. Verify the integrity of the company. Do a background check and see if the company is known for good business practices and if they have transacted with companies like yours.

6. Do not make a habit of signing a contract too hastily. Read the application carefully because some contracts carry a non-cancellation clause or penalty. If a company will not leave an application with you overnight, they are probably trying to use “high pressure” tactics so that you don’t have time to really know what you are signing.

7. Find out what people are saying about the merchant account provider and see which provider has the best reputation. Oftentimes the best form of marketing is by word of mouth, as these connote first hand experience and not just hearsay.

8. In choosing a credit card payment processor, check out the fees and services. Compare which one will work best for your business.

9. Check out how and when will you get the payment. Some merchant account providers have a minimum amount before they send you the payment. Others may charge you with wire transfer fees.

10. Avoid companies with high monthly fees. These providers will drain you of your resources. Many of these companies rely on those monthly fees to compensate their marketing and sales efforts.