A merchant account is mainly for a business that allows them to accept the payment either by credit or debit card. It is a bank account of a retailer. Through this account, a retailer, payment processor, and merchant bank have an agreement to settle the credit and debit card transactions. This bank can have any kind of customers like gambling, gaming, and other business. The merchant account for gaming handles the gaming transactions of the company.
When a person pays for the game at casinos via credit card, the funds are first credited to the merchant bank account from where it transfers to the business bank account eventually. The transaction for a merchant account for gaming is done on the weekly or daily basis. This is not only for gaming business, any business running online need at least one merchant account for payment online.
Obtaining a merchant account for gaming
Getting a merchant account for gaming is not a one-shot process because the business of issuing the merchant account is highly competitive. In order to minimize the risk, the vendors determine a variety of criteria whether to approve a merchant account application or not. Here is a list of criteria for a merchant account.
•Types of business—means which business has a higher risk or lower risk of credit card fraud or return
•Number of years of business
•Business history—any bankruptcies, defaults, delay etc
•Whether the applicant has a previous merchant account for gaming
•Personal history of credit on the business owner
Most of the new business owners get the favorable review from their merchant account form from the bank that handles their businesses and personal accounts. Having the higher risk of gaming business does not mean the bank will reject the application. However, the vendor may demand the higher fee for compensation for risk.