The key development drivers of the sector are global urbanization and the increasing digitization of technology. The number of nations working on legislation to regulate and tax casinos is also rising.
Players may enjoy themselves lawfully without worrying about losing access to their cash. Players’ experiences are enhanced while company owners have more chances to grow. However, the gaming industry is still seen as a high-risk area, thus proper care must be taken while handling financial transactions.
Choosing a payment processor is a crucial step for every online gaming business. The primary challenges faced by gaming businesses will be discussed, and the criteria for selecting a payment gateway will be introduced.
Problems that often arise with gaming establishments
- Data protection. Online gaming prioritizes security. Every company should make protecting its customers’ personal information a high concern. The frequency of scams in the gaming industry rose by 55 percent during the epidemic alone. You should, therefore, consider the payment gateway’s security measures against fraudulent use before making your final decision.
- Money is taken out. In many regions, gambling is illegal because of the inherent danger of the industry. This implies that such businesses have a hard time making bank withdrawals. Additionally, withdrawal limits are often capped by payment processors.
- An abundance of refund requests. Every division of the corporation has a maximum chargeback percentage that triggers new regulations. Chargebacks are a common result of fraudulent transactions, thus it’s crucial that the payment gateway be as secure as possible.
When it comes to keeping their customers secure, preventing underage gambling, and promoting responsible gaming, online casinos know they need to work with a gateway that gets the industry.
Gambling payment gateway selection criteria
- Security. Payment gateways protect users’ finances. Fraud protection relies on AI and ML. This detects and blocks fraudulent transactions and prevents subsequent ones;
- Availability. Users should be able to pay easily from anywhere. The gateway’s extensive payment acceptance is a plus.
- Quantity of business conducted. The throughput of a system is measured by the proportion of attempted transactions that actually complete. This metric improves as the payment gateway becomes more trustworthy;
- Ways to pay. Buyers—domestic and foreign—should have many payment options.
- Help with technology. The gambling payment gateway provider is obligated to provide expert technical assistance to address any client concerns and mediate any disagreements that may arise.
How Do GSPs Work?
In the gambling industry, a payment processor is an organization that provides services to facilitate payments between you and your customers. Payment processors are essentially middlemen between you and your bank or credit card provider.
Gambling-specific payment processors (GSPs) are companies that specialize in handling transactions related to online gambling sites. They’re particularly useful for new businesses because they often offer lower fees than their non-gambling counterparts and have expertise with handling transactions related to gaming sites,something most traditional banks don’t have much experience with!
What Are GSP Payment Processor Fees?
Gambling-specific payment processors charge fees for their services, which can vary depending on the processor you choose. Some processors charge a flat fee per transaction while others charge a percentage of each transaction’s value. In addition to processing credit card payments, some GSPs also offer other services such as payment gateway fees and fraud protection services that may incur additional fees.
Who Uses GSPs?
GSPs are used by all types of gambling operators, from casinos to sportsbooks to poker rooms. They’re also used by slots and other machines at casinos, as well as online gambling sites. Gambling affiliates also use GSPs to receive payments from their customers.
A new breed of payment-processing tools exists specifically to support gambling businesses
These payment-processing solutions, known as GSPs (gambling-specific processors), are designed to accommodate the needs of online casinos, sportsbooks and other gaming operators.
GSPs offer a large variety of payment options that can help your business grow, including:
- E-wallets such as Skrill and Neteller
- Bank transfers from around the world
- Credit cards issued by major banks in all major countries
Drawbacks of using a gambling-specific payment processor
If you’re running a gambling site, you may be wondering: should I use a gambling-specific payment processor or not? There are pros and cons to both. In this article, we’ll look at the drawbacks of using a gambling-specific processor so that you can make an informed decision about whether it’s right for your business.
Gambling-specific payment processors charge higher fees than conventional processors
The reason for this is that gambling-specific processors need to have more stringent security measures in place than regular payment processors do,and those costs get passed on to you.
Gambling-specific payment processors usually don’t offer all the features of conventional processors
For example, if you’re looking for something to help automate your bookkeeping and accounting, a gambling-specific processor may not be able to provide it. You may also find that other services aren’t available through these processors,for example, they won’t allow you to accept international payments or process ACH payments (which are electronic bank transfers).
Some gambling-specific payment processors only work with certain types of gambling sites
For example, some processors only work with poker sites, while others only accept sports betting websites. Other processors may only allow casino or bingo sites to use their services.
If you’re looking for a payment processor that fits your needs perfectly,and if so, why wouldn’t you?,it’s important to make sure that the processor works well with your site before signing up for it.
While you will get access to more features if you use a gambling-specific processor, you may have to pay more for them than regular processors
Gambling-specific processors offer more features than regular processors and typically charge higher fees as well. Some of these sites are also limited in what types of sites they can be used with, so it’s important to check before signing up with one or else your business might not be able to accept payments at all!
When using a standard cryptocurrency payment gateway, your whole wallet is at risk if you accept questionable transactions since your IP address cannot be hidden. Your IP address’s anonymity is especially important in the gaming realm, which is often linked to “grey-hat” operations.
Grey-hat transactions need the ability to distinguish them from white-hat ones. BitHide enables you to preserve your wallet’s pristine structure. Any potentially fraudulent transactions will trigger an alert and be sent to a different section of your account.
It might be inconvenient to have to remember to withdraw money every time. Schedule withdrawals based on time and amount received, and categorize them based on vendors or the potential riskiness of transactions using BitHide. In addition, the API allows for instantaneous withdrawals whenever necessary.