High Risk Casino Merchant Processing
A merchant account is simply a special type of bank account which is designed specifically to accept payments made by credit cards. These payments could be made by customers either at the stores where the purchase is made, via credit card terminals or over the internet via shopping carts made in a company’s web page. In order to accept payments made by credit cards, a trader will require an internet account at a financial institution such as a bank. Merchants having high risk businesses like casinos, online gaming, and adult industry business have problems in obtaining merchant accounts. This happens due to the risk associated with the card frauds that take place as well as the involvement of high turnover. This results in financial institutions shying away from giving internet merchant accounts to these business owners. A trader can then obtain the services of merchant accounts from private institutions.
After a merchant account is obtained, the next requisite is to have payment gateway accounts. A payment gateway account is simply a processing account used for the authenticity verification of the card after which the funds get transferred to a merchant’s account.
A consumer enters his card details on a merchant’s web-page. This information needs to be entered on secure web-pages. This implies that that details collected on web pages need to be encrypted such that no third party is in a position to read it. Have secure web pages is mandatory in order to reduce frauds made by credit cards. After this, the shopping cart software compiles all the received information and sends it across to a credit card processor, which is a payment gateway. The processor then verifies the received information and then determines the firm managing the credit card of the consumer. After this, the processor sends a billing request.
When the credit card firm receives a billing request, the company does an account validation to ensure that nothing is wrong. An acknowledgement is then sent to the respective payment gateway. If the received information is authentic, the processor initiates a fund transfer to the merchant’s account.
The merchants can also opt for 3rd party merchant accounts. In this type of merchant account, the merchant account provider collects the money for the trader. However, the fees taken by 3rd party account providers for processing could be higher in comparison to personal merchant accounts. The merchant account processing functions in a similar manner for both the 3rd party as well as the personal merchant accounts. However, the difference lies in the fact that the payments are not directly made in the website of the merchant but the consumers are directed to make payments in the website of the 3rd party processor. Hence, all the details are entered by the consumers in the website of the 3rd party processor. The processing that follows after entering the information is the same. Therefore, it is dependent on the merchant to select a personal merchant account or a 3rd party merchant account.
Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.
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