Gaming is one of the fastest growing industry. Day by day the gamers are actively investing money in terms of new graphic cards, new custom gaming builds and how can we forget about in game payments for virtual currencies in battle royal games that is required for in-game upgrades and new outfits.
The major issue that a gaming business merchant faces is the expensive payment gateway which includes high MDR and other processing terms which makes it more than a headache to get profits over it. This is majorly due to less knowledge about the how the payment industry works.
But now it is easier to apply for a low cost gaming payment gateway with a tier 1 provider. But it is vital to have a proper license and
For more information on what is tier 1 gaming provider, please check: https://quadrapay.com/online-gaming-merchant-accounts/
Merchants should keep this in mind that just getting a low cost gaming merchant account is not enough. There are various other factors to look at when you choose a gaming merchant account.
- Gateway Compliance. The solution that you are signing up for should be fully compliant to the latest PCI DSS standards. The compliance to the latest protocol set by leading card schemes provides extended protection to card schemes, card holders and merchants. Gaming merchants should consider this point as extremely important. Since the number of transactions on gaming sites is usually huge the fraud % is equally high. The PCI DSS standards put in place help the entire eco system to be in good health.
- Integration method. This is a factor that gaming merchants must check before making the application. The gateway integration should be compatible with merchants site. The simplest way to check is to visit the api and integration page of the PSP/Bank. The information is usually detailed and also offers list of available plugins. Merchants must also ask the gaming processor if the hosted checkout page can be modified in terms of look and feel. Some providers allow merchants to upload logo and change colors with CSS modification. This helps merchants to easily match the hosted payment page look closer to merchants brand colors.
- Number of processing currencies. Gaming approvals are hard and the processing company does extended risk analysis before approving an account. After approval merchant will come to know the list of nations from where the traffic can be accepted. If the merchant accepts payments from multiple nations then the merchant must get the ability to process various currencies. Advanced gaming gateways come with multi-currency processing with built in dynamic currency conversion also called DCC.
- On-boarding Time Frame. It is simple to understand. If you approach the direct acquiring bank or PSP then chances are that the approvals may come in 1-2 weeks. However if your application goes indirectly then the time frame may be longer. Also as a reseller we have seen merchants from the gaming sector sending there applications to multiple providers at the same time. This creates massive problems as the solutions are limited and of the account is approved from a channel where multiple resellers are involved then the merchant may have to pay very high fees and this may make the business less profitable.
- MDR or transaction %. Once the gaming merchant agreement is made you will be able to see the rates you are supposed t pay for each transaction. The rates vary on multiple factors like how much experience you have , How much is the volume, startup or experienced, the risk involved in merchants profile and the type of business model. Rates may also vary depending upon any add on services that you prefer to implement on the gateway. Low risk gaming accounts to high risk gaming accounts the pricing may vary from interchange++ to 7-8%. Honestly this is decided by the processing company as per there understanding. However merchants have the right to negotiate and we have seen merchants getting rates revised after reasonable negotiation.
- Cascading Of Gaming Merchant Accounts. Some providers may suggest merchants to get additional account from some other banks. This is done because of multiple reasons. May be merchant requested the same. The merchant or the PSP may be experiencing lower success ratio of first MID and the second MID may have a bigger approval ratio. The cascading feature intelligently routs transactions to the correct MID. Some gaming merchants use SAAS Cashier software to implement smart routing.