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Credit Card Processing for Gambling and Fantasy Sports
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Gambling and fantasy sports are two high-risk industry that requires serious scrutiny, especially when it comes to credit card payment. Gambling is already shady history and is considered illegal in some parts of the United State. Fantasy sport, on the other hand, is steadily rising, and lawmakers are still trying to unveil the legalities involved in the industry.
These two Industry Combined pose a big challenge for credit card processors, especially when they are already considered high risk when it comes to credit card payments. For people used to credit cards, you may find out that fantasy sports credit card processing is a gamble.
According to credit card companies, fantasy sports are deemed high risk because the outcome is based on luck, while gambling, on the other hand, has many technicalities and complexity involved. While debit card processing for kratom is among the many businesses also considered high risk, it is becoming easier since many states are beginning to legalise the product.
Why Are Gambling and Fantasy Sports Considered High Risk By Credit Card Companies?
Gambling and fantasy sport are both considered some form of betting. This is the reason why both are considered high risk. When it comes to gambling, there are so many grey areas and complexity that most credit card companies prefer to avoid the whole stress involved.
Here are some reasons why gambling is considered high risk
Age Restriction
One major reason why gambling is considered high is the age restriction involved which varies across all states. Usually, for most states, the legal age is between 18 and 21, but in Vegas, 21 is the legal age for all activities.
Different State Laws
For credit card companies, it is more efficient if the law is uniform across all states. The reason is that gambling law differs across all states, creating complexity for companies when they are trying to meet up.
What is acceptable in state A may be completely illegal in state B, making the credit card processing companies to change their criteria depending on each state.
Federal regulations
Federal regulation also plays an important role in making gambling a high-risk business. The Bright side is that if your gambling business is legal and lawfully registered, many processors will be willing to accept it. However, they are illegal in most states, making it difficult for online gambling businesses.
Some Reasons why Fantasy Sport is considered high-Risk Business
Charge back
Charge back is the biggest culprit for both gambling and fantasy sports. And without proper parameters in place, it might be difficult to fight against. The only way to cover your base is to employ a good payment processing provider and put proper guidelines in place to prevent such occurrences.
Other reasons include association with gambling, high-ticket value, and fraud.
High-Risk Merchant Accounts
Businesses like gambling and fantasy sports categorized as high risk are better off with a high-risk merchant account. Accepting credit card payments would be easy by using a company that supports your type of Business.
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