High-risk merchant account providers are a type of financial institution that specializes in issuing merchant accounts to businesses in industries that have a history of chargeback fraud. Casinos are one such business.

To keep these establishments as clients and not lose their trust, most high-risk merchant account providers will thoroughly assess the business’s application and perform a detailed risk assessment of the individual casino before approving them for an account.

Why Casinos Need To Find High-Risk Merchant Account Providers

Chargeback fraud occurs when a customer disputes a charge on their credit card as a way to get a refund on a transaction they made. The dispute could be legitimate or not, but the credit card companies will generally side with the customer when it comes to chargebacks.

If a chargeback occurs, the money will be returned to the customer and the merchant’s account will be debited for the amount plus a fee. Chargeback fraud is especially common in industries that deal with goods and services that are typically purchased impulsively.

For instance, casinos are at a high risk of chargeback fraud because they are involved in the sale of an experience that people often buy when they are feeling happy and excited. Casinos also take a very long time to process payments. This gives customers plenty of time to regret a payment and initiate a chargeback

To avoid chargebacks, casinos will often put a hold on a customer’s credit or debit card. This prevents the cardholder from having access to their funds while the casino makes sure the customer is ready to pay for their gaming session.

Benefits Of Working With High-Risk Merchant Account Providers

If you’re a casino operator, you want to make sure you are working with a high risk merchant account providers. This type of financial institution specializes in issuing merchant accounts to businesses in industries that have a history of chargeback fraud.

By working with a high-risk merchant account provider, you’ll be able to keep your costs low and avoid high chargeback rates. Because casinos are at extremely high risk for chargebacks, it’s important to find high-risk merchant account providers.

High-risk merchant account providers will thoroughly assess the business’s application and perform a detailed risk assessment of the individual casino before approving them for an account. This is important because it will help you avoid being placed in a chargeback monitoring program.

Chargeback monitoring programs are designed to watch out for high chargeback rates to protect credit card networks from losses. If your casino ends up in a chargeback monitoring program, your financial institution will likely increase your chargeback threshold and debit your account for any chargebacks that occur. By working with a high-risk merchant account provider, you’ll be able to avoid these issues.

Finding The Right High-Risk Merchant Account Provider

Depending on the size of your business and the type of services you provide, you may need to find a high-risk merchant account provider that offers different services. For example, if your casino accepts payments online, you’ll likely need to find a provider that specializes in e-commerce payment processing.

When you’re searching for high-risk merchant account providers, make sure to check out their track record and history. You should also try to get a good feel for the company’s customer service reputation. You can typically do this by reading online reviews from current and former clients.