As the fantasy sports industry continues its upward trajectory, with revenues hitting $7.8 billion in 2020, the ability to process payments efficiently is crucial. Yet, many fantasy sports businesses struggle to secure a dedicated merchant account due to the industry’s high-risk nature.
The Challenges of Accepting Payments in Fantasy Sports
Fantasy sports businesses face unique challenges when it comes to payment processing. These include navigating complex regulations, a higher incidence of chargebacks, and potential reputational risks. Despite these challenges, the demand for fantasy sports betting is on the rise, driven by increasing digitalization and changing consumer habits.
Why is Fantasy Sports Considered High-Risk?
The fantasy sports industry operates in a legally ambiguous space, influenced by both federal and state regulations. This ambiguity, coupled with a high rate of chargebacks and the potential for fraud, places fantasy sports businesses in the high-risk category for banks and payment processors.
Overcoming Payment Processing Challenges
To maintain growth and customer satisfaction, fantasy sports businesses need a merchant account provider that understands and can navigate these industry-specific challenges. A reliable high-risk merchant services provider offers transparent processing solutions, ensuring uninterrupted payment acceptance.
Essential Features of a High-Risk Merchant Account
Choosing the right payment processor is crucial for the success of a fantasy sports business. Look for providers offering state-of-the-art payment gateways, multi-currency support, comprehensive transaction data technology, and robust fraud prevention tools.
Fraud Prevention and Chargeback Management
Given the sector’s susceptibility to high chargeback ratios, effective management programs and fraud prevention software are vital. Utilizing advanced security protocols and chargeback mitigation tools like Visa’s Verifi and the Cardholder Dispute Resolution Network (CDRN) is essential to maintaining healthy chargeback ratios.
Partnering with Bankcard International Group
Bankcard International Group specializes in providing merchant services tailored to high-risk industries like fantasy sports. Our team of expert advisors will guide you through the application process, ensuring a complete package for underwriter review. We pride ourselves on offering reliable and sustainable solutions, focusing on the long-term success of our clients.
If you’re navigating the complexities of payment processing in the fantasy sports industry, let us help you “Experience The B.I.G. Difference!” Contact us today for a partnership focused on your success.
