A merchant account is a key instrument for every iGaming company. Its presence allows operators to accept payments from customers’ bank cards. Most financial institutions classify iGaming as a high-risk business. The reasons are the ambiguous attitude towards the industry in general, as well as a large number of chargebacks and a high risk of crimes in online casinos. Despite this, it is possible to open an account for a gaming project, but you have to make an effort.
In this article, you will find everything you need to know about merchant accounts, including the conditions for obtaining them and their advantages.
What is a merchant account?
A merchant account is a special trading instrument that allows you to accept payments from various types of credit cards such as Visa, American Express, MasterCard, etc. Owning it is not just important, but simply a necessary condition for the functioning of a large gambling project on the Internet. An account can be issued in almost any bank, but this option is available only for legal entities.
It is also worth noting that the choice of a bank must be approached with particular scrupulousness. It is crucial to find a financial institution with a good reputation and no prejudice against the iGaming industry.
How to get an account?
The account opening procedure consists of several steps:
- Preparation of required documents, and filling out an application. It is difficult to say which documents will need to be collected, because each financial organization has its own list. However, any of them will likely ask you to provide the following:
- Detailed description of the type of activity of the company;
- Confirmation of an entity registration, data of founders and managers;
- Extract from the company’s credit history;
- Gaming license;
- Website address and confirmation of its location on a paid hosting (it is a necessary condition);
- Refund and other policies.
- Sending the package of documentation to the bank;
- Paying fees;
- Waiting for the decision. Providing some extra data if needed;
- Signing an agreement and obtaining the details of the account.
To simplify the procedure and increase the chances of success, contact LicensingAid specialists. Our team provides assistance in opening a merchant account. We can help you choose a reliable bank, collect a complete package of documents and submit an application.
Advantages and risks of a merchant account
What are the merchant account benefits?
- An ability to accept payments from any credit cards of your customers;
- Binding to a specific web resource and the presence of a separate identification number;
- There are no restrictions on time of transactions and the geography of gamblers;
- An ability to easily and quickly track all transactions;
- Reduced tax rate and lack of currency control (mostly for the banks from offshore jurisdictions).
The only risk associated with a merchant account is the risk of refusal to open it. Note that the presence of a license from any of the respected jurisdictions significantly reduces the possibility of such an outcome.
As you can see, the complexities of the acquisition process pale in comparison to the merchant account benefits.
Conclusion
A merchant account is a crucial tool for the modern online gambling business. Getting it is not easy, but it’s definitely worth it. Contact the professionals from LicensingAid to simplify the procedure and increase the chances of success. We know everything about merchant accounts. Our team can also help with obtaining a gambling license, AML compliance and trademark registration.
