Gaming Merchant Account & Payment Processing

Gaming merchant account

The online gaming industry has not only become bigger in the last few years, but its earning potential for merchants has also significantly increased. 

However, the disruption means that gamers are also becoming more conscious of what to expect from providers, and this can pose a significant threat to merchants that do not transform their business models. 

One positive transformation that has become popular in the industry is the use of dedicated online gaming merchant accounts. 

A dedicated online merchant gaming account can help you get the most revenue out of the gaming business because of its many features that lure customers to your business. 

So, what exactly are gaming merchant accounts, and how do they work?


What is a Gaming Merchant Account?

An online gaming merchant account is a specialized bank account created to solve specific payment challenges experienced by gaming businesses. 

Although it is quite similar to traditional merchant accounts, it functions differently since it is tailored to gambling-related transactions despite the risks involved. 

So, a gaming merchant account does more than process transactions. It is an essential component of the gaming industry, and merchants need it to run their gaming businesses smoothly.

Gaming merchant account


How to Obtain a Gaming Merchant Account?

Gaming merchant accounts have become incredibly relevant in the gaming industry over the years. These accounts serve as igaming payment solutions, allowing seamless online payments in multiple currencies and different payment methods. 

Also, contrary to common opinion, with an online gaming merchant account, you can easily keep track of all payments received and maintain records of all transactions. 

Due to the rising demand for these accounts, you can create your high-risk merchant account in four simple steps. 


Step 1: Registration

The process begins with registering with a top online gaming merchant account solution. Once you’ve done so, you’ll be redirected to a page that prompts you to upload the necessary documents and complete an application form. Note that different merchant account solutions have different requirements, so we recommend that you carefully study the site to find what’s necessary. 


Step 2: Application approval

Once you’ve applied to your choice online gaming merchant account solution, the gaming merchant account payment processing platform will analyze your information and send an email with a detailed review of your offer. 


Step 3: Offer acceptance

Review the offer and accept it if you’re okay with it. After Acceptance, the gaming merchant account payment processing platform will proceed with the necessary documentation for the service agreement. Once they’ve signed all necessary agreements, they will begin integrating your platform with their solution.


Step 4: Test run and final Approval

At this point, you will be granted access to test run the platform. After the test run, you will receive full activation.


Online Gaming Merchant Account Credit Card Processing

We often hear gamers ask how credit card processing works for online gaming merchants. The process is quite simple and 100% secure. 

Here’s how it works: When someone starts a gambling business, and a player initiates a purchase within a game, they are required to provide their credit card information to credit their gaming account. The credit card details are encrypted and securely sent to the credit card processor, otherwise known as the payment processor. 

As part of its job, the credit card processor sends the required details to the acquiring financial institution. Acquiring banks are typical intermediaries between gaming merchant account payment processor’s banks and customer-issuing banks. 

Once the issuing bank receives the request and accompanying data, it verifies the customer’s account balance and other fraud prevention factors before sending an authorization code back through the same channel. 

Since this is quite a high-risk payment gateway, the acquiring banks must notify both parties of a successful authorization before transferring the funds from a customer’s account to the gaming merchant’s account.


What are the Requirements For an Online Gaming Merchant Account?

As expected, requirements for a gambling merchant account can vary based on specific processes that payment processors and acquiring banks adopt. 

However, since we typically recommend working with an experienced processor, here are some requirements that top online gaming merchant account providers ask for. 

Documentations include:

  • Certificate of incorporation
  • Copies of valid passport
  • Certificate of incumbency
  • Application


Website requirements:

Below are some of the things you should have on your website to be able to open an online gaming merchant account. 

  • A detailed privacy policy page
  • Terms and conditions
  • Company name in the footer
  • Contact page with phone number and email
  • Refund Policy page
  • MasterCard and Visa logo (depending on which payment methods you offer)


Other requirements:

  • Processing history
  • Anti-fraud measures
  • Compliance and regulations
  • Secure payment processing.


Once you have all the necessary documentation, it’ll be easy to create your online gaming merchant account and get instant approval without any issues.

This documentation also helps the online gaming merchant account providers verify your authenticity and easily help you if issues arise with the account in the future. 


Which Countries are Blocked From Obtaining an Online Gaming Merchant Account?

When it comes to online gaming legislation, the two most common arguments are that while it’s a very profitable industry, it poses the risk of causing problematic gambling behavior. 

Therefore, most governments and state authorities are constantly trying to find a balance between reaping the benefits of gaming and protecting citizens from possible addiction. 

That said, it’s not surprising that some countries outrightly ban gambling, while some partially ban it. Such countries often block the obtaining of online gaming merchant accounts. 

The list of countries in this category is endless; however, some of the most popular countries include:

  • Brazil
  • Hungary
  • Hong Kong
  • Iceland
  • Israel
  • Japan
  • Netherlands
  • Lithuania
  • Poland
  • Norway
  • South Korea
  • Singapore
  • Switzerland
  • Turkey

Some popular countries where online gaming accounts are allowed are: 

  • United Kingdom
  • Malta
  • Gibraltar
  • Isle of Man
  • Alderney
  • China (with strict regulations and restrictions)
  • USA (with strict regulations and restrictions)
  • Jersey
  • Curacao
  • Antigua and Barbuda
  • Kahnawake (Canada)
  • Australia (with certain restrictions and regulations)

Only six states in the USA allow online gambling: New Jersey, West Virginia, Michigan, Pennsylvania, Connecticut, and Delaware.

Also, Michigan, Pennsylvania, New Jersey, Delaware, Nevada, and Michigan only allow gambling on online poker games. 

Since there are no federal laws regulating gambling in the United States, these specific states have to create their own laws. 

High risk gaming merchant account


What are the Online Gaming Merchant Account Processing Fees?

Online gaming merchant processing fees vary based on several factors, including gaming merchant account payment processor, your business, credit history, jurisdiction, and account requirements. 

Generally, most platforms require transaction fees ranging from 2-4%. 

You’ll also be required to pay a $1,000 fee registering with MasterCard and Visa. This fee ($500 each) is payable annually.


What are the Different Types of Online Gaming Businesses?

The online gaming business is growing rapidly, and as expected, more people are finding new ways to invest in it, birthing new types of online gaming businesses.

That said, here are some of the most popular types of online gaming businesses available today:

  • Sports betting platforms
  • Online casinos
  • Affiliate marketing in gambling
  • Online poker rooms
  • Game development for online casinos
  • Secure payment solution for gambling sites
  • Online lottery platforms
  • Poker

You must understand each one and how it works before getting your gambling license and finding the right online gaming merchant account processing platform for your needs. 


What is a Chargeback in Gaming, and How Can it be Prevented?

In the online gaming world, cashback is also known as friendly fraud, and it occurs when a legitimate customer files for a cashback under false pretense with the motive of getting back the money paid for a game. 

Often, people who engage in this kind of scam lose money in online gambling, but instead of enduring their loss, they call their bank and claim that their card was used to fund a betting account without their consent. 

Hence, the bank is forced to reimburse the gambling losses at the merchant’s loss. 

To prevent this type of fraud, a gaming merchant account payment processor must provide excellent user authentication. Unfortunately, this process can cause some friction in customer experience. 

Too much friction can also discourage legitimate users from using some Igaming payment solutions, irrespective of what they offer. So, you must find the right balance between customer experience and authentication. 

Some steps that can help include:

  • Asking gamblers for proper verification of funds before deposit
  • Mandating complex passwords on new accounts
  • Requiring proper verification of card CVV every time a new card is added
  • Leveraging backend fraud tools like IP verification, fraud engine scoring, geolocation mobile payment options
  • Age verification.


What are the Benefits of a Merchant Account for Online Gaming Transactions?

Gaming merchant account payment processors would not be as popular as they have become in the online gaming world if they were not beneficial.

However, many people still do not know the extent of its benefits. 

Here are some important benefits merchant accounts bring to online gaming transactions:


Legality and regulation

Gambling merchant accounts are designed to help ensure total compliance with all legal requirements associated with online gaming. 


Payment processing

Thanks to these accounts, businesses can now accept deposits directly into customers’ betting accounts. 


Risk management

Both merchants and customers can leverage the numerous risk management tools that gambling merchant accounts carry to mitigate possible risks and provide a secure payment system for customers.  


Enhanced security

In addition to helping you mitigate risks, merchant accounts come with robust security measures to protect all parties from the effects of any fraudulent activity.


Faster transaction processing

Thanks to the automated process adopted by most of these accounts, merchants, and customers can now enjoy faster transaction processing while significantly reducing the time it usually takes to complete a transaction.


Top 6 Tips to Keep Your Gaming Merchant Account Safe & Secure

Again, safety and security begin with a seamless user experience, but it doesn’t just stop there.

There’s more to be done, and the following tips can help you secure your gaming merchant account: 

  • Maintain a recognizable descriptor to avoid chargebacks from unrecognized transactions.
  • Initiate and  implement robust security measures  to block all kinds of fraudulent transactions.
  • Maintain a <1% chargeback to avoid suspension or a complete loss of account. 
  • Ensure efficient communication with your client when any issue that needs resolving arises. 
  • Monitor all transactions from a central unit to know when fraudulent activities begin.
  • Choosing a reliable Igaming payment solution with similar security ideologies and standards.


Why Choose PayFasto for Your Online Gaming Merchant Account Services?

Like most other online gambling merchant platforms, PayFasto promises to handle all your transactions with utmost care and security.

With over a decade in the industry, handling over 1 million transactions monthly with a 90% approval rate, the platform has quickly become the top choice for online gaming merchants. 

It is also a global service, easily processing transactions in over 150 currencies and multiple countries while handling payments for 6 different types of online gambling businesses.

Rest assured that all your transactions are in safe and secure hands.

Payfasto also offers outstanding support that is accessible at all times, so if for any reason you’re unsatisfied with any of their services, you can reach out and get support in no time.



Here are some of the most commonly asked questions about gaming merchant accounts and payment processing.  

How can I get instant approval on my online gaming merchant account?

Setting up an online gaming merchant account has many benefits, but it’s not easy. You’ll need to do as much research about the industry as possible and take your time to learn about the components of an online gaming merchant account. However, once you’ve acquainted yourself with the right information, the process becomes easier and smoother. You can also contact a top-notch gaming merchant account service like PayFasto to help you handle it. Their experience helps to make the process fast and seamless.


What is the easiest country to get a gaming license?

A Curacao gaming license is the easiest one to obtain. It covers all kinds of gaming, so whether you intend to run an online casino or an online poker room, you can be sure that a license issued in Curacao will do. When a gaming license is issued in this country, it is done as a token of customers’ trust and respect for the online gaming merchant company. Most top gaming merchant account payment processing platforms have a presence there, so you can imagine the ease of doing business here.


Can you use Stripe or PayPal as a gaming merchant?

Both Stripe and PayPal are well-known providers present in many countries around the world. They also support numerous currencies with multiple payment options, so they function for both online and offline businesses. However, before choosing to use any of these payment providers, we recommend checking factors like personalized customer support, which can be very important for the gaming business. Unfortunately, Stripe does not provide personalized support, and that can impact some aspects of your gaming merchant business.


Online gaming merchant account and payment gateway – do I need both?

As an online gaming merchant account, most of your business is online. Of course, you know that any business that wants a strong online presence will need both a payment gateway and a merchant account. Gaming merchant account payment processing gateways act as a secure bridge between customers’ banks and the merchant’s bank, therefore allowing the seamless flow of financial transactions between all parties.


How does the online gaming merchant account setup look like?

Generally, the setup is similar in most types of online gaming merchant accounts. It involves submitting an application, providing all required documents, undergoing risk assessments, and signing necessary agreements. The time it takes to complete this setup may differ based on different factors, but the right platform, like PayFasto, can help hasten the process and provide instant approval for your online gaming merchant account.


What is the best payment processor for the gaming industry?

The best payment processor and merchant accounts for the gaming industry typically depend on what you expect to get. In general, we recommend gaming merchant account payment processing gateways like Total Processing, Payu, PayFasto, and Adyen. These gateways are not only efficient but also offer unique benefits and features, catering to different preferences and business requirements.

There are years of industry experience behind our high-risk merchant guides and tips...