Our team of lawyers helps with all legal issues when opening an online casino or betting platform. We also provide legal services for opening a gaming merchant account in offshore and foreign zones where gambling activities are allowed. In this material, we will cover aspects of opening an account for accepting online gaming payments.
What Is a Gambling Merchant Account?
Merchant account is a type of bank account that allows businesses to accept payments in several ways, usually with debit or credit cards. It is opened by an agreement between the acceptor and the acquiring bank for card payments.
Gambling Payment Processing
The customer makes a payment by card and his data is processed by the payment system, then the funds pass through the processing center and go to the merchant’s account. Merchant account is only a part of the acquiring process, an intermediate bank account. Merchant account serves as payment gateways for your business, even if it is an online casino or sports betting platform.
Risks for Gambling Merchant Account
Due to the fact that the gambling industry is considered risky, many financial institutions refuse to work with casino payment systems. These businesses are prone to excessive chargebacks and refunds and may experience a higher volume turnover. The market is just unpredictable. High-risk businesses face chargebacks and other problems more often, that is why they come with the need for paying higher fees for merchant services.
Gambling Payment Processing Requirements
There is no single regulated list of documents and requirements for opening a gaming merchant account. According to many factors, the requirements and the set of documents may vary, for example, in some jurisdictions, the process of opening a gaming merchant account will be a little easier than in other markets. Nevertheless, we will give you a unified list of requirements:
- Application forms
- Evidence of a gambling license
- Company registration documents
- Memorandum of articles of association or an equivalent document
- Documents of the founders and shareholders of the company
- Transactions forecast, including estimated number of transactions, average amount per transaction, and total amount
- Information about the cardholders
Additionally, any Director, Officer, Shareholder and Ultimate Beneficiary of the company must provide the following documents:
- Original and certified copy of the identity document
- Certified copy of a utility bill as proof of address, with full name and full address of residence (issued within the last 3 months)
- Certificate from the bank on the official letterhead, which includes information about the banking relationship duration, the type of accounts and whether the account holder is a reliable customer (issued within the last 3 months)
- Curriculum Vitae
- Letter of recommendation
How Much Does It Cost?
The cost of opening a merchant account for gambling business depends on jurisdiction, type of your business and experience. LicensingAid specialists will help you to choose the right jurisdiction and correctly structure the company, as well as to calculate the final cost of opening the merchant account.
How Can LicensingAid Help Me?
LicesingAid is a provider of products for various verticals in the iGaming industry. We work to promote and support the legal gambling market all over the globe by helping new enterprises enter the world of licensed gaming. In conclusion, we would like to point out that if you still have questions about the price and the opening process of a merchant account you can contact our experts. Our team of professionals has a clear vision of what is going on in the gambling industry and can handle even the most complicated requests.