Sportsbook Credit Card Processing: Industry Guide by QuadraPay
Table of Contents
Sportsbook credit card processing refers to the payment processing services offered to online sportsbooks. Such payment gateways are offered by registered high-risk processors. These specialized processors ensure full compliance with regional and international regulatory standards. Sportsbook payment gateways include important features like fraud prevention, transaction speed optimization, and support for multiple payment methods. These specialized providers only offer accounts to licensed sportsbook businesses that support responsible gaming.
The online sportsbook industry is booming; however, getting a sportsbook credit card processing account is becoming hard. Most sponsor banks classify sportsbooks as a high-risk industry. This makes it tough for sportsbook businesses to accept credit card payments. It can be said that finding the right sportsbook payment gateway can be challenging these days because of regulation and scarcity of supporting merchant processors .
However, if you are running a licensed sportsbook or betting platform, then it should not be that hard for you. You can work with specialized high-risk merchant account providers that support legal gambling and gaming-related industries. That way you will be able to accept credit card payments while following regulatory compliances.
QuadraPay has been assisting sportsbook merchants since 2016 and provides them assistance in getting merchant accounts and payment gateways. Our sportsbook payment processing experts have written this guide for you. It discusses various factors that will help you in improving the chances of your approval for a sportsbook credit card processing account. Let’s begin.
Why Sportsbooks Need Specialized Payment Solutions
Traditional credit card processors generally do not approve these high-risk merchants. Some may do so, but only to suspend the account soon after approval. This is because of various reasons, such as regulatory uncertainties, high chargebacks, and industry reputation. Because of these factors, sportsbook platforms need managed risk merchant services, as these specialized services are compatible for related industries like fantasy sports, raffles, skill competitions, and social gaming. The specialized sportsbook payment providers offer a much-needed lifeline to legal merchants operating in these highly regulated sectors.
Credit Card Processing for Sportsbooks
Accepting card payments is extremely important for sportsbook platforms. This helps merchants build trust with users. Platforms that have access to card processing see better revenue growth and engagement. With a sportsbook-managed risk merchant account, these businesses can experience hassle-free transaction processing. The specialized merchant account solution uses real-time fraud detection tools to identify and stop risky transactions. Our credit card processing partners allow merchants to use chargeback prevention services, which help in reducing disputes and chargeback ratios. Proactive transaction monitoring, custom risk thresholds, geo-blocking, and location-based restrictions help keep the merchant account active and in full compliance.
With credit card processing solutions, merchants can accept credit and debit card payments easily online. Most providers support multiple currencies. However, it is important for merchants to ensure full customer identity verification (KYC/AML) and comply with gaming laws. You should always work with a sportsbook payment service provider that fully understands all the compliance requirements for such transactions.
Sportsbook Payment Gateway Integration Services
Payment gateway integration is mandatory for sportsbook companies to ensure a smooth checkout experience. With the right payment gateway, you will be able to ensure frictionless transactions while maintaining your brand guidelines. Many providers allow merchants to modify CSS files to customize the look and feel of the checkout pages. For this industry, many providers offer tokenization for repeat billing. With a fully responsive payment gateway, merchants can accept payments across web and mobile platforms. The gateway comes with a dashboard that displays transactions in real time and also allows export of reports. Whether you are using a white-label betting platform or building your own setup, you deserve a better and more flexible sportsbook payment gateway.
Alternative Payment Solutions for Sportsbooks
Some merchants may require additional payment methods to cater to customers in different regions. For this, they will need an alternative payment solution for sportsbooks. The most popular alternative payment methods used in this industry are cryptocurrency payments such as BTC, USDT, and Ethereum. E-wallets, bank wire transfers, SEPA, e-checks, ACH, and Interac are also popular. These alternative payment methods help merchants expand their footprint, especially in regions where credit card payments are limited or restricted.
Choosing the Right Sportsbook Payment Provider
When choosing a payment processor for your sportsbook business, it is important for you to consider the following factors.
The most important thing is experience. You should work with a payment processor that has experience in working with merchants from the sportsbook industry. Keep in mind that supporting businesses in this category is not an easy task, and only experienced providers should be chosen that ensure compliance with the mandatory legal regulations while processing credit card transactions.
The provider should support local and international transactions. This is important for those businesses that have an international user base. The right processor will provide you with a multi-currency payment solution that will allow you to accept transactions from customers in various jurisdictions.
Transparency in pricing is crucial. You should work with the payment processor that gives you the details about all the costs and fees involved. The agreement should clearly mention all the fees. You should avoid working with providers that are not clear about pricing.
Another most important factor is built-in fraud detection and chargeback control measures. Yours is a high-risk industry, and that is why it is extremely important for you to take all the measures to keep your account safe for a long time. By ensuring that you work with a provider that has an excellent fraud detection and chargeback management tool, you will have peace of mind, and your account will be stable.
Prefer to work with providers that have multiple channels of support, such as via phone, email, and chat. This way you will be able to contact the customer service team whenever needed. Along with that, it is also important to see how easy the onboarding process is. In high-risk industries, some processors take months to onboard accounts; that should not be the case with you.
Disclaimer:
Disclaimer: QuadraPay is a payment solutions reseller. It does not provide direct processing services. All services are offered via third-party registered payment processors. This content is intended for informational purposes only and is meant only for licensed and regulated sportsbook businesses. Merchants must ensure full compliance with local and international laws related to online gaming and payment processing. QuadraPay does not support or endorse any form of illegal gambling.
Suggested Readings
Recommended Certification Legitscript
https://gaming.ny.gov/sports-wagering
Professional and Amateur Sports Protection Act of 1992
https://www.legislation.gov.uk/ukpga/2005/19/contents
Ready to Start Processing Payments?
At QuadraPay, we work as a reseller for various payment processing partners that support legal sportsbook merchants. Our team will be happy to assist you. We will be happy to connect you with these providers. Let us find the best payment solution for your licensed sportsbook platform.