The igaming industry has proven to be a promising avenue for entrepreneurs to earn a decent income. In contrast to the challenges faced by numerous businesses over the past few years due a wide variety of problems, online gaming companies have not only weathered the storm but have thrived. This success story can be attributed to the significant uptick in people engaging in gaming activities, seeking an escape and entertainment without having to leave their houses.
As you would expect, the surge in gaming participation translated into substantial profits for online gaming companies, positioning them as beacons of success. This is a big reason why an increasing number of people are trying their hand at online gaming businesses, seeking massive profits. While there is no denying that these ventures can be highly profitable, but they also have their fair share of complexities.
Most of these complexities show up because of online gaming businesses being deemed as high risk. So, if you want to operate your gaming enterprise without interruptions and ensure igaming payments are always smooth, you need to partner up with an igaming payment processing service like Pay.cc. Mentioned below are some reasons that highlight why you shouldn’t ignore the importance of a high risk payment gateway for your company:
The Risk of Chargebacks is Incredibly High
Since online gaming is an intangible product, it presents a unique challenge for merchants due to the increased likelihood of chargebacks. Among these challenges, friendly fraud, a prevalent form of chargeback, poses a significant threat to plenty of merchants. To counter such situations, businesses are increasingly turning to igaming payment gateways, essential tools that empower business owners to combat unwarranted claims for refunds.
In today’s business world, transparency is a key practice employed to establish and maintain customer trust. This commitment to openness not only enhances customer relations but also serves as a protective shield for merchants. Consider the scenario where gaming players initiate a chargeback request because they find it challenging to identify a particular transaction on their bank statement. Unbeknownst to them, the debit from their account corresponds to a subscription for a gaming service. However, due to insufficient transaction information, a customer may demand a refund.
Enterprises deploy tools like email invoice descriptors as a strategic measure to prove that they have consistently provided clear details about the product and company name associated with the payment. These descriptors contain crucial information, including the company name, the amount paid, and the product name, effectively outlined in the invoice.
This feature not only ensures transparency in transactions but also fortifies merchants against unfounded chargeback claims, making their stance resilient. In this way, the use of an igaming payment processing service becomes a valuable asset in safeguarding the rights and interests of merchants when it comes to online gaming transactions.
The Persistent Threat of Money Laundering
While merchant accounts boast PCI-DSS compliant systems, aimed at thwarting money laundering, the issue remains a significant concern. However, in the face of this challenge, a lot of banks have evolved, leveraging innovative artificial intelligence tools to detect and combat suspicious activities. The gaming industry, known for its susceptibility to money laundering, grapples with inherent vulnerabilities due to a lack of robust policies and controls.
Fraudsters exploit these weaknesses, searching for ways to enter into the network. Some gaming merchants even extend facilities allowing players to conceal their identities, creating an avenue for hackers to engage in identity theft. Additionally, the usage of convertible and non-convertible currency poses a substantial risk.
Money laundering takes various forms within the igaming industry. Hackers may steal credit card information, circumvent two-factor authentication, and employ the data to purchase in-app currency. This acquired currency or game materials might then be resold online at lower prices. High risk payment processing accounts, like the ones offered by Pay.cc actively reinforce their networks to detect and combat illegal activities. The efforts of these entities contribute significantly to creating a more secure environment within the gaming sector, mitigating the risks associated with money laundering.
igaming Payment Gateways are Vital for High Turnover Rates
Gaming businesses naturally experience a high volume of turnover on an annual basis. However, the challenge arises when it comes to finding suitable financial support for daily transactions, as conventional banks and traditional financial institutions often lack the capacity for high-volume transaction processing.
For businesses with both high risk profiles and significant turnover, obtaining a igaming payment processing account becomes crucial. Considered the backbone of such companies, a merchant account tailored for high-risk industries is essential for seamless daily operations. Traditional banks are usually constrained by their limitations and are not equipped to handle the unique demands of businesses with large turnovers, requiring the involvement of specialized financial institutions.
In essence, a high risk payment gateway becomes a lifeline for online gaming businesses dealing with substantial transaction volumes. Beyond the operational needs, it also addresses the processing requirements that conventional financial institutions may not cater to, given the legal constraints associated with high-volume businesses.