Best Merchant Accounts for Online Gambling (2023)

Credit and Debit Card Processing for A Growing Online Gambling Industry

Online gaming and gambling exists in a legal gray area, with some states taking action to prohibit it and others taking a more lenient stance. For this reason, online gambling is considered a high risk industry, but that doesn't necessarily make it criminal. If you run an online casino or internet gambling business in the U.S. or EU, you may still be able to process credit card payments through a high risk merchant account provider. High risk merchant accounts tend to come with higher rates and fees, but they can still provide helpful customer support and products to help streamline your e-commerce gaming company. In short, while it may be difficult to find a processor that can serve you, it isn't completely impossible.

With the rise in popularity of online fantasy sports, the online gambling industry has been growing quickly in recent years, and is now responsible for roughly $8 billion annually. Payment processors have been somewhat reluctant to catch on, still pointing at high charge back rates as a reason to shy away from the high risk industry. However, since 2018 when Murphy v. NCAA overturned existing legislation from 1992, several legal limitations that prevented merchants from entering the industry have been reduced or downright removed. This is helping to normalize the risky business, making payment providers more likely to offer online gambling payment services.

To help you find a credit card processor that can assist your business, we've put together the following list of the best merchant accounts for online gambling. The companies on this list offer e-commerce solutions, offshore merchant accounts, marketing tools, and other useful services for operating your online casino. They are also known to provide low-commitment contracts with transparent pricing and quality customer service. To find the right provider for your online gaming site, be sure to research each processor's products and features and compare pricing and terms.

Note: This list contains providers that are capable of serving online casinos in regions where online gambling is legal. The companies on this list are not recommended for physical casinos. If you are looking for a casino merchant account, see our list of the best merchant accounts for brick-and-mortar casinos

How to Select the Best Online Gambling Credit Card Processor

When selecting a credit card processor for an online gambling business in the USA, there are several factors that should be considered.

Legal Compliance

The first and foremost consideration for online gambling businesses is legal compliance. Online gambling is regulated at the state level in the USA, and not all states permit it. Therefore, the payment processor should ensure that they are licensed and authorized to operate in the states where the business is operating.

Acceptance of Gambling Transactions

Many credit card processors do not accept transactions related to gambling due to legal restrictions and the high-risk nature of the industry. The payment processor selected for an online gambling business should accept gambling transactions and have experience in handling high-risk businesses.

Security and Fraud Prevention

Online gambling transactions are highly susceptible to fraud and chargebacks. Therefore, the payment processor should have robust security measures in place, such as fraud detection systems, encryption, and secure payment gateways, to ensure the safety of transactions and protect the business from chargebacks.

Credit Card Payment Processing Fees

The payment processing fees charged by the processor can have a significant impact on the profitability of the online gambling business. Therefore, it is essential to select a processor that offers competitive rates and transparent pricing.

Superior Customer Support

Online gambling businesses operate 24/7, and any payment processing issues can significantly impact the customer experience. The payment processor should offer responsive customer support and be available to address any issues quickly.

Reputation

The reputation of the payment processor is also crucial when selecting a processor for an online gambling business. The processor should have a track record of reliability and honesty in handling payments for high-risk businesses. You can consider our review on this website, by simply searching for the processor in the search bar at the top of this page.

Integration

The payment processor selected should be compatible with the online gambling platform used by the business to ensure seamless integration and avoid any technical issues that may impact the customer experience.

In summary, selecting a payment processor for an online gambling business in the USA requires careful consideration of legal compliance, acceptance of gambling transactions, security, payment processing fees, customer support, reputation, and integration.

Top Picks for Merchant Services for Online Gambling

PaymentCloud

Based in Woodland Hills, California, PaymentCloud is a merchant account provider that specializes in serving high risk business types. The company's products and services include point-of-sale solutions, mobile phone swipers, an online payment gateway and virtual terminal, EMV-compatible terminals, and merchant cash advances. PaymentCloud is a good option for online gaming sites that may or may not include chance-based games.

PaymentCloud provides a dedicated account rep to all new merchants for the life of the account. The company has not received any negative complaints on consumer forums, and it customizes its pricing according to each merchant's business type and processing history. The BBB does not maintain a profile for PaymentCloud at this time, but CPO gives the company an “A.”

For more information, visit the PaymentCloud website or call (888) 506-7859.

eMerchantBroker

eMerchantBroker.com is a Los Angeles, California-based company that offers high risk e-commerce processing solutions including online gambling merchant accounts. The company's products include ACH processing, an online payment gateway, merchant cash advance, and a chargeback management system to help merchants dispute and resolve chargeback claims. eMerchantBroker.com can provide an offshore merchant account for online gaming sites as long as they are properly licensed and willing to sign a high risk addendum to their contract.

eMerchantBroker.com offers custom pricing for each merchant and maintains a low complaint rate relative to its size and merchant portfolio. Our review of eMerchantBroker gives the company an “A” rating overall and the BBB assigns the company a rating of “A+.”

For more information, see the eMerchantBroker website or call (877) 301-3442.

Host Merchant Services

Host Merchant Services is a Newark, Delaware-based merchant account provider that is able to provide merchant accounts for a large number of high risk business types. The company's products and services include online marketing tools, an online payment gateway and virtual terminal, gift and loyalty programs, merchant cash advance, and offshore merchant accounts. Host Merchant Services specializes in e-commerce businesses and provides a free website and email address to interested merchants. Host may be able to serve online gambling business that utilize offshore merchant accounts to accept payments.

Host Merchant Services has received only positive feedback on public forums, with most reviewers singling out the company's customer service for praise. Host offers custom pricing to all of its merchants, but most merchants will enjoy transparent pricing and the ability to cancel service without penalty. The Better Business Bureau gives Host an “A+” rating, and CPO also gives the company an “A+.”

For more information, visit the Host Merchant Services website or call (888) 727-4538.

National Processing

Based in Lindon, Utah, National Processing is a high risk merchant account provider that is capable of serving international gambling merchants. The company's products and services for gambling businesses include multiple currency support, offshore banking partners, an online payment gateway, shopping cart integration, and fraud protection. National Processing is a good fit for internet gambling companies that have international customer bases.

National Processing customizes its pricing depending on each merchant's size, business type, and processing history. The company has earned an “A+” rating in our review as well as an “A+” rating with the BBB.

For more information, visit the National Processing website or call (385) 777-1235.

Frequently Asked Questions: Online Gambling Credit Card Processing

What are merchant accounts for online gambling?

Merchant accounts for online gambling are financial services that cater to businesses operating in the online gambling and betting industry. These accounts enable online casinos, sports betting platforms, poker rooms, and other gambling websites to accept credit card and electronic payments from their players.

Why do online gambling businesses need specific merchant accounts?

Online gambling businesses are considered high-risk due to the potential for chargebacks, fraud, and regulatory issues. Specific merchant account providers for online gambling understand the unique challenges and risks associated with the industry and offer solutions tailored to meet the needs of gambling operators

 How can I find the best merchant account provider for my online gambling business?

To find the best merchant account provider for your online gambling business, consider the following steps:

a. **Research High-Risk Processors:** Look for payment processors that specialize in serving high-risk businesses, including online gambling. These providers will understand the specific needs and challenges faced by the gambling industry and can offer suitable solutions.

b. **Check for Compliance Measures:** Choose a provider that is well-versed in the legal and regulatory landscape of online gambling to ensure that your business stays compliant with all applicable laws and regulations.

c. **Verify Fraud Protection:** Look for a merchant account provider that offers robust fraud protection and chargeback prevention measures to minimize potential losses.

d. **Compare Transaction Fees and Rates:** Assess the processing fees, transaction rates, and any other costs associated with each potential merchant account provider. Choose a provider with transparent and competitive pricing that aligns with your online gambling business's size and transaction volume.

e. **Check for Secure Payment Processing:** Ensure that the merchant account provider offers secure payment processing to protect sensitive player data and financial information.

Can online gambling businesses use regular merchant accounts for payment processing?

Due to the high-risk nature of the online gambling industry, many mainstream merchant account providers may not be willing to support gambling businesses. Therefore, specialized merchant account providers for online gambling are often more suitable, as they are designed to handle the unique needs and risks associated with the industry.

Are there any specific legal considerations for online gambling businesses when choosing a merchant account provider?

Yes, online gambling businesses must adhere to strict legal requirements, including age verification, gambling licenses, and compliance with regional laws and regulations. Choose a merchant account provider that has experience in the online gambling industry and understands the legal landscape to ensure proper compliance.

How long does it take to set up a merchant account for an online gambling business?

The time it takes to set up a merchant account for an online gambling business can vary depending on the provider and the nature of your business. The process may involve additional due diligence due to the high-risk nature of the industry. Typically, the setup can take a few weeks to a couple of months.

Can online gambling businesses accept credit card payments and other forms of electronic payments?

Yes, specialized merchant account providers for online gambling typically offer solutions for credit card payments, debit cards, and other forms of electronic payments to facilitate a seamless betting experience for your players.

Can online gambling businesses process both one-time wagers and recurring billing with a merchant account?

Yes, online gambling merchant accounts usually support both one-time transactions for individual bets and recurring billing for subscription-based services or membership plans.

Are there any hidden fees I should be aware of when choosing a merchant account for online gambling?

Carefully review the contract terms and fees of potential merchant account providers to identify any hidden costs. Watch out for setup fees, monthly minimums, and any other charges that might impact your overall costs.

Can online gambling businesses switch merchant account providers if they are not satisfied with the service?

Yes, online gambling businesses can switch merchant account providers if they are not satisfied with the service or find a better fit for their specific needs. However, be mindful of any contractual obligations and potential termination fees that might apply.

Finding the best merchant account for your online gambling business is crucial for ensuring smooth and secure payment processing while adhering to legal and compliance requirements. Take the time to research and compare different options to choose a provider that understands the unique needs and challenges of the online gambling industry.

Reader Comments

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1 User Reviews

  • Ezra

    I want to express my sincere gratitude for your comprehensive and insightful article on “Best Merchant Accounts for Online Gambling”. As an individual involved in the online gambling industry, your guide has proven to be an indispensable resource for understanding and navigating this specialized arena.

    Your in-depth analysis of each merchant account, highlighting their unique strengths, possible drawbacks, and key features, was excellently done. You have an impressive ability to simplify complex topics, making them easily digestible for readers like myself.

    I especially valued your emphasis on crucial factors such as transaction fees, customer service, and robust security measures. Your insights into the specific needs of the online gambling industry, including handling high-risk transactions, managing international payments, and ensuring regulatory compliance, were extremely beneficial.

    The depth of research, time, and expertise you invested into this guide is clear. Your commitment to providing accurate, current, and practical information has substantially simplified the typically complex decision-making process, enabling professionals like me to make informed decisions.

    Thank you once again for your invaluable contribution to this field. Your hard work, dedication, and expertise are deeply appreciated.

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