Before you bet, check, raise, or fold, you must know what a gambling payment gateway is. Essentially, a gambling payment gateway is a mechanism that facilitates online transactions regarding online gambling and betting.
When it comes to online gambling platforms, the role of an online payment gateway is to serve as an intermediary between the player and the platform. In this context, it will process the payments securely and allow the players to deposit money into their accounts or withdraw their winnings.
To help you get your online casino up and going, we’ll also explain how a gambling payment gateway usually functions step-by-step.
- Deposit: Online casinos function just like real ones, which means you need money in order to gamble and bet. So, the first step would be to find your account with actual money. Depending on the payment gateway, you can choose from various payment methods. And, once you select your preferred method of payment and provide the necessary information, you can make a deposit.
- Payment Processing: A payment gateway processes your payment securely by encrypting data in order to protect it. After that, the financial institutions involved are contacted in order to authorize and carry out the payment.
- Transaction Validation: After the processing and approval, your payment will be recognized as a successful deposit, which means you’ll be able to use the deposited amount for gambling activities.
- Withdrawal: Once you’ve won, you’ll want to cash out your winnings. In order to do so, you’ll need to initiate a withdrawal request. The request will then be received by the payment gateway and your funds will be withdrawn via the method of your choice.
- Compliance and Security: In order to ensure security, gambling payment gateways adhere to strict standards. Various security methods and encryption protocols are there to prevent fraud and money laundering.
Why Finding a Gambling Payment Gateway Is Hard?
Integration with secure and reliable payment gateways is essential for an online casino. However, finding a gambling payment gateway is no easy feat. This is largely due to the fact that not all payment gateways accept gambling-related transactions, due to the nature of gambling itself, and due to not wanting to associate with the industry.
Along with that, there are other obstacles, such as, for example, industry regulations. Simply put, certain countries have very strict regulations regarding the gambling industry. In some regions, online gambling is prohibited by law, while in some payment processors and operators need to fulfill complex licensing requirements. With all that in mind, many payment gateway providers tend to stay away from online gambling platforms.
Even if we disregard the regions where online gambling presents a bigger issue, problems such as fraud and risk concerns still pop up nonetheless. This is due to the fact that transactions relating to gambling present higher chargeback and fraud concerns. This happens because players sometimes try to dispute charges after losing. Or, in more extreme cases, use stolen credit cards to deposit money into their account.
In addition to that, online gambling platforms are generally given higher fees than other businesses. This way, there is a risk mitigation factor on the side of the payment gateway.
It’s also safe to say that the online gambling industry is rather competitive. And, with that being said it’s easy to assume that online gaming payment gateways are in high demand. This increased demand makes it harder for online gambling platforms to partner up with reliable payment providers.
Lastly, compliance requirements can present a challenge too. The gambling industry has some specific requirements, along with AML and KYC, which add complexity to the whole process. This can make the situation more complicated for online payment providers.
Factors to Consider When Choosing a Gambling Payment Gateway
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Naturally, there are certain factors you need to consider before you opt for a gambling payment gateway. Below, we have compiled the most important things to keep in mind when making the selection.
How Many Payment Gateways Do You Need?
Let’s cut to the chase, having one payment gateway simply won’t be enough. Firstly, having multiple payment gateways will allow for growth, both technical and business-wise. Secondly, if your platform is supported by more than a singular payment gateway you’ll be able to ensure dynamic and innovative business integrations and models
Which Payment Methods Should You Offer?
Tailoring your approach to your audience is extremely important when it comes to payment methods. After all, customers look for convenience, reliability, and fast payment processing options. Additionally, different payment gateways have integrations with different methods of payment, so the best choice is to opt for those with multiple payment options.
Are You Able to Offer a Seamless Experience?
It’s important to choose a payment gateway that will not have technical issues or glitches occuring. Additionally, complicated data entry systems should also be avoided. After all, your customers will want to spend their time gambling and betting, not figuring out the checkout and waiting for their payment to be processed.
Are You Able to Provide Security?
When it comes to financial transactions the most important thing is to ensure security. With all the fraudsters and hackers around, you need to have a payment gateway with strong encryption protocols, two-factor authentication, and other such security measures. This ensures the protection of sensitive data and fraud prevention. Additional security also includes the aforementioned fraud prevention, for the sake of preventing fraudulent transactions and also reduce chargeback risks.
Which Currencies/Countries Do You Operate In?
Not all online payment gateways are created equal, with that in mind they’re also not all specialized for the same markets and regions. Because of this, you need to consider who you’re targeting in order to provide favorable FX rates and payment options.
What About Recurring Payments?
Recurring payments can be rather profitable for online gambling platforms. After all, you will have customers who keep coming back, and you’ll want to save their time and effort with payment process automatization.
Does the Payment Gateway Comply With Compliance Measures?
Online businesses need to adhere to compliance regulations of the Payment Card Industry, and online gambling platforms are no different. Following a set of security guidelines created to safeguard card information both during and after a transaction is a requirement for PCI compliance. An online gambling platform must adhere to PCI DSS (Payment Card Industry Data Security Standard), which is a set of requirements for payment gateway processors to protect the data and funds of their clients.
What About Customer Service?
A good payment gateway provider should offer access to technical support personnel who are available around the clock to promptly and efficiently resolve any issues you may be having. They should also provide you with several ways to get in touch with them, including by phone, email, and live chat. An account manager should also be provided to the customer once the process is in motion, in order to assist the customer with all the necessary things.
How Much Does Your Payment Gateway Cost?
Fees tend to differ generally from provider to provider. Both transaction and gateway fees must be paid. Transaction fees, which make up a very small portion of the total transaction, are a payment for the convenience of accepting credit card payments. The transaction processor charges a gateway fee to cover the costs of receiving and handling the transaction. And, a gateway charge covers the cost of using the infrastructure required to collect payment information, obtain bank authorization, transmit information to the merchant, and facilitate payment to the merchant.
What Kind of Development Team Do You Have?
Setting up a payment portal for your online casino requires a lot of technical software, and your development team has to be able to skillfully integrate a number of components. These consist of your billing software, refund software, shopping carts, integrations with acquiring banks, processing software, fraud prevention software, and anti-fraud software. So, having a good team makes the whole process a walk in the park.
Best Gambling Payment Gateways
Now, that we have everything else out of the way, it’s time to discuss the matter at hand – what are the best gambling payment gateways available?
ReactivePay
You should exercise extra caution when selecting a processing provider if your platform falls within the category of high-risk enterprises, such as online gambling. As we’ve discussed, many businesses in this sector face challenges with payment providers due to the unreliable aspect of the industry they operate in. However, that is avoidable if you use a solution that eliminates any issues of this nature. One such solution is ReactivePay.
ReactivePay is an online payment gateway that offers solutions for all kinds of financial services. Its services include seamless API for bank accounts and fund transfers, KYC checks, fraud prevention, payment monitoring, analytics, and mass payouts.
Key Features:
- Multiple Currency Processing
- Website Payments
- Mobile Payments
- Invoice Payments
- Advanced Fraud Detection
- Customer Due Diligence API – KYC Checks
- Multiple Payment Methods – PayPal, WeChat, UnionPay, etc.
- Mass-Payouts
- Easy Integration
- Saved Cards + Multiple Card Options
- Good Customer Support
Skrill
Skrill is a well-known payment gateway that also functions as an online wallet. It’s famous for its quick processing times and affordable fees, particularly for deposits. Many potential clients are likely to find it rather appealing if they already use it on other websites because it is widely utilized in the online gambling industry. Additionally, numerous international legal systems and major financial service providers recognize it.
Key Features:
- PoS Transactions
- Multiple Currency Processing
- Website Payments
- Mobile Payments
- Invoice Payments
- Saved Cards
- Recurring Billing
Authorize.net
This payment gateway is ideal for businesses that need to accept cheques and contactless payments through their website, which high-risk businesses may find appealing. Authorize.net also provides improved security thanks to sophisticated fraud detection and prevention built into its software.
Key Features:
- Advanced Fraud Detection and Prevention
- Secure Customer Data
- Recurring Payments
- Invoice Payments
- Simple Checkout
- Payment Integration
- Good Customer Support
PayKings
PayKings is an online payment gateway that specializes in providing merchant account services for high-risk businesses, such as ones affiliated with the gambling industry. As such, these businesses are more likely to encounter chargebacks, and legal and regulatory issues, and can also have a higher risk for fraudulent activity. So, this payment gateway really is fit for a king – of gambling, that is.
Key Features:
- Loans Repayments With Debit Cards
- Fraud Detection and Prevention
- International Accounts
- Easy Setup
- Cash Discount and Surcharge Fee Programs
SMB Global
SMB Global provides services to typical everyday companies, though it specializes in high-risk businesses, making it perfect for your online casino. This payment gateway service customizes its offers to the needs of various clients and willingly works with online gambling companies worldwide.
Key Features:
- Good Customer Service
- Mobile Payments
- Business Loans
- Chargeback Prevention Suite
- Credit Card Terminals
- Different Payment Gateway Options
PayPal
PayPal is a giant when it comes to online payment providers. And, because it supports more than 20 currencies and is renowned for having good security requirements, PayPal is an appealing option for high-risk businesses. Additionally, it’s available in more than 200 countries and is widely used as a payment method across the globe.
Key Features:
- Secure Transfers
- Easy Setup and Use
- Zero Subscription Fee
- Different Payment Methods
- Security Measures
- Mobile Payments
- Easy Integration
Trustly
Given that the gaming sector is one of their target markets, Trustly is a stellar choice for such high-risk businesses. Online gambling platforms also may favor the low charges and prompt transactions that Trustly has to offer. In addition to that, both retail payments and gambling transactions can be facilitated. Security features like KYC and various verification procedures are also there to make the entire process easier.
Key Features:
- Good Security Measures
- Direct Bank Transfers
- Instant Deposits
- Withdrawal and Deposit Options
- Easy Integration
- Mobile Payments
- Instant Payments
- Recurring Billing