Top mistakes when choosing a payment gateway for gambling
From year to year, the market share of online gambling is growing rapidly. According to analysts, in the next five years, the total income of online casinos will increase by 80%.
Many people experience an excitement. Gambling allows a person to obtain such vivid emotions. In addition, there is a chance to win a very significant amount of money by playing online games. That is why this type of business is very attractive to entrepreneurs.
However, many of them, when starting a new venture, face with lack of knowledge when it comes to implementing payment opportunities.
Let’s figure out how to avoid some pitfalls when choosing a gambling payment provider:
1. Seeking for a payment provider with the lowest fees.
Every merchant tries to find a better solution at a lower price. If you are looking for a gambling payment processor with the lowest possible fees, you should know that not all of them are reliable. A significant quantity of companies will not cover all your needs.
Let’s define how payment institutions determine credit cards fees and what parties are involved:
- Transaction fees. General and the most well-known type of payment is charged per transaction. It takes place when a PSP charges a definite amount for each transaction. It consists of a conversion rate, a markup of the PSP, and an assessment (a unique fee that depends on the type of a client’s card). The assessment fee for Visa cards is about 0.11%.
- Occasional fees. This fee is not regular and is only charged on several occasions such as chargebacks, fraudulent activities, failed transactions, and others. To avoid these undesirable obstacles, you may refer to a PSP that provides fraud and chargeback prevention software. Others have dispute management to solve chargeback cases to the advantage of a client.
- Flat fees. For using the services of a PSP or a payment gateway, you may pay additional funds.
Don’t chase cheap solutions. They can destroy your business.
2. Take liability for securing transactions data
When it comes to the transaction data security, every merchant should consider a PSP with a PCI DSS certification. The significance of it cannot be overestimated. The Payment Card Industry Security Standards Council certificate provides not only an opportunity to meet the latest transaction data security needs but also to optimize the operation of the entire infrastructure.
On the one hand, the infrastructure is becoming more secure, and on the other, it improves the attitude of customers to the services provided. The company also reduces its losses from hacker attacks.
Of course, merchants have the opportunity to pass the certification and prove the reliability of the system by themselves. But ensuring the proper level of protection and preparing for an audit is a laborious process. In this case, it is better to choose a payment service provider with the appropriate certificate.
3. Providing fewer payment options.
Each entrepreneur tends to develop their business and provides a wider variety of solutions to its customers.
Some clients do not want to use their credit cards for security reasons. If you cannot provide alternative payment options, you will lose a significant number of potential customers.
By offering alternative payment solutions for gambling, you obtain an ability to reach larger audiences and to broaden horizons.
If you’re not offering such methods of payments as mobile payments, contactless payments, e-wallets, and many others, fewer potential customers would consider trusting your business.
4. Make the integration process simple
The easier the PSP can integrate the payment page into the game interface, the more pleasant it is to use it. That is why contacting a payment provider that can explain the specifics of each payment system for gambling and choose the best integration method is vital.
PSPs provide several types of payment gateway implementation on your website.
The Application Programming Interface is a combination of different tools and functions implemented as an interface for creating new applications, through which one program will interact with another. The main aim of developing the API was to enable programmers to significantly facilitate tasks when developing various applications through the use of ready-made code.
- Virtual Terminal.
A virtual terminal is a software application that allows you to accept remote payment by credit card, using a secure connection via the Internet.
No additional software installation is required. Using the Virtual Terminal, you can perform operations with cards without the presence of a client, and without production a card. Also, using this function, the technology of recurring payments is implemented.
- CMS plugins.
A plugin is a software component whose purpose is to expand the basic capabilities of another program.
These components are mini-programs, which, however, cannot work separately. You can only install them upon definite programs.
Today, plugins are a top-rated product that allows you to satisfy all the needs of users due to their diversity and quantity.
- Hosted Payment Page.
A hosted payment page is a particular type of payment page that is not located on a website of a merchant. It allows making payments at the moment of the checkout process.
When a client clicks a “Buy” button, a customer is re-directed to this secure payment page where to enter certain payment information. Besides, a merchant can customize it on their own.
5.Local payment providers.
Think whether a gambling payment provider can offer your business a worldwide coverage. Is multicurrency processing supplemented with dynamic currency conversion? Does your provider offer payment solutions in the countries where you conduct your business? For your business to be accessible to customers around the world, you need to have a wide range of payment options. Choose payment providers who can offer the most popular payment systems in the broad spectrum of regions.
The bottom line
Online gambling platforms are considered a profitable business that allows merchants to earn a significant profit. Operating an online casino is becoming more convenient, so it has become easy to open your own online gambling business. However, there are still many details that need to be worked out.