Best Merchant Accounts for Online Gambling | U.S. & E.U.

Although online gambling is legalized in some states in the U.S., it is still prohibited in some states and many countries. Because of this, online gambling is considered a high-risk business, and merchants have difficulty finding service providers for credit card processing. High-risk businesses need merchant account providers proficient in dealing with this business type. So for such businesses here is the list of best merchant accounts for online gambling

High-risk businesses are not accepted by all merchant service providers and often become victims of account restrictions and funding holds. Only MSPs that cater to high-risk businesses offer payment processing to the gambling business. High-risk businesses come with added risk for the provider as well.

These businesses are more prone to chargebacks and fraudulent payments, so not only are they tougher to process, they can leave a negative impact on the online reputation of the provider.

E-commerce merchant account providers charge more fees as online payments are categorized as card-not-present. Furthermore, they also require a payment gateway for processing, as cards and payment information are not physically available to the merchant. In addition to this, they also require a safer channel to process information to the merchant. When high-risk merchants need these features, fees can be expected to skyrocket.

Troubles Faced by Online Gambling Businesses

Before we discuss the best merchant accounts for online gambling we need to understand the barriers and troubles faced by the merchants.  Unlike other large and small merchants, the merchants related to online gambling have different requirements. Online casinos are a prominent part of the gaming industry.

The high turnover volume, the possibility of refunds, high chargebacks, the potential of fraud, and money laundering are common in this business. All of these factors add risk for the merchant provider. Finding a service provider for online gambling is challenging and a significant reason for this is that the business owner can operate it from anywhere in the world, as they rarely have physical offices.

As a result, online casinos are left with limited options for payment processors to choose from, further amplified by the unlawful internet gambling enforcement act of 2016. Even the service providers offering their products and expertise to such businesses usually charge merchants high rates.

Nevertheless, there are a few reliable e-commerce merchant account providers providing facilities for online gambling. It should be noted that these providers offer processing services only in the states where online gambling is legal. Below is a list of the top e-commerce merchant accounts for online gambling in the U.S. and E.U.

7 Best Merchant Accounts for Online Gambling

Here are the top and best merchant accounts if you are into online gambling.

PaymentCloud

Headquartered in L.A., California, PaymentCloud is a reliable merchant account provider dealing with both small and medium-sized business types and is a well-grounded service provider for online gambling and many high-risk businesses. The company provides EMV-enabled credit card terminals that are free with each account and can be returned if the consumer decides to cancel the contract. Moreover, it offers options for mobile payments, virtual terminals, POS solutions, ACH processing, and cash advances. It uses Authorize.Net, USAePay, and various third-party payment gateways to allow online payment processing, which is handy for online casinos.

Many low-risk merchant service providers have recommended PaymentCloud to merchants looking for service providers capable of meeting the needs of high-risk merchandise. The provider does not charge any application fee and helps online gambling businesses get their accounts approved without an account setup fee. However, the provider has not disclosed accurate information about its interchange plus pricing rate on the official website. Reviews indicate that it offers different rates and contract terms to merchants. This means there is no fixed rate to compare with other merchants, and it also reduces the overall transparency of the provider. Overall, the provider is better suited for medium and some large-sized businesses.

Host Merchant Services

Located in Newark, Delaware, Host Merchant Services is one of the best e-commerce merchant account providers in the modern financial market. It is specifically designed to cater to gaming and other business types with high-risk factors, including online gambling and casinos. The company offers gift and loyalty programs, cash advances, virtual terminals, tools for online marketing, and various payment gateways. The provider offers top e-commerce merchant accounts.

HMS has an A+ rating on its Card Payment Options and Better Business Bureau profiles. Merchants have given positive feedback for the company’s customer service, with considerably positive reviews online for its products and services. Merchants can negotiate and get customized pricing plans and choose a suitable payment gateway according to their business needs. The company offers an interchange plus pricing plan for their customers and a choice to select their POS system. Furthermore, there is no setup, application, or PCI compliance fees. If a merchant cancels the contract, they also don’t have to pay an early termination fee.

HMS caters to several other high-risk businesses other than the gambling business at nominal fees. Even the low and medium-risk accounts offered by the provider are competitively priced. The low online complaint total and a plethora of services make it one of the most recommended processors of 2022.

Durango Merchant Services

Durango Merchant Services is a highly recommended U.S.-based merchant account provider located in Durango, Colorado. The company provides a wide range of features and products for online casinos, including iSPY fraud protection, eCheck processing, iProcess app and card reader, and virtual terminals. Its services cover cryptocurrency and offshore merchant accounts for international merchants. Both these things are rare, even in the best-rated e-commerce merchant account providers.

Durango does not outsource its gateway services to third parties; it offers its own gateway called Durango Pay. The provider offers a long-term contract with a tiered pricing module and an early termination fee which can be relatively higher in some instances. Its processing rate and account fee are not disclosed and can vary. The company has somewhat decent customer care, and an account manager assists merchants in addressing queries. However, the account manager may not be available 24/7, leaving merchants stuck in case they need immediate assistance outside business hours. Durango has an A+ rating on its BBB-accredited profile.

One prevalent issue with Durango is that merchants have difficulty getting their accounts approved. While high-risk merchants often undergo lengthy sign-up procedures with almost all providers, Durango also has a high rejection rate. When merchants are rejected after a long waiting period, it can leave a lasting impact on their business and a bad impression of Durango.

Soar Payments

Soar Payments is another US-based e-commerce merchant account provider competitive in the high-risk business area. It offers e-commerce merchant services to merchants in businesses that face a high amount of fraud and are less likely to find a payment processor. The provider caters to online betting and fantasy sport and provides products like smart credit card terminals, ACH payment processing, e-checks, built-in receipt printers, and mobile card readers for brick-and-mortar companies. The company has introduced ChargebackArmor as a chargeback prevention and protection package.

Soar Payments offers a two-year contract that renews to a one-year contract after the first two years. Merchants are provided a tiered and interchange-plus pricing plan and charged a high termination fee for canceling the contract in the initial two years. The service provider charges an account fee and a monthly minimum fee to high-risk merchants and has variable processing rates. It uses Authorize.net, USAePay, and NMI as payment gateways for online processing. For rolling reserve accounts, consumers have to pay an additional fee.

Even though it provides an attractive package to the consumers, the company’s pricing rates and equipment terms are not transparent. Merchants are advised to look for all the necessary information before signing a contract, as many providers have a long-term contract, with terms unnegotiable after it is signed.

Easy Pay Direct

Introduced in 2012 in Austin, Texas, Easy Pay Direct is an e-commerce merchant account provider and payment gateway for high-risk companies and online gaming businesses. As the provider has a personal payment gateway, it offers merchants a free gateway and virtual terminal. Additionally, consumers can integrate their existing merchant account with the EPD payment gateway. Easy Pay also has access to various backend processors, making account approval less tiring for high-risk merchants.

EPD provides level 1 PCI compliance, cash advances, wired and wireless terminals, mobile payment, and POS systems. Its equipment lease is generally inexpensive. It offers a tiered pricing plan which isn’t very promising, but merchants can request an interchange-plus pricing module under conditions. Even though the company has a fair rating on the platform, its profile is not accredited by BBB. The contract terms and length is not disclosed on the official website, and the pricing is not transparent. Moreover, merchants are charged an account setup fee, and the contract has an automatic renewal clause which can be a headache for consumers.

National Processing

National processing is a U.S.-based merchant account provider located in Lindon, Utah. The company has proficiency in the online gambling business niche and offers free credit card terminals, ACH processing, e-check conversion, mobile payments, chargeback prevention, and POS systems. It uses Fiserv and other third-party financial service providers for backend payment processing. The provider’s expertise includes credit repair, non-profit organizations, dropshipping, subscription services, gaming, tobacco sales, and other high-risk business categories.

National Processing offers interchange-plus and month-to-month membership pricing modules. A long-term contract does not bind merchants if they purchase the hardware at full price, and there is no early termination fee. However, if a merchant decides to close their account after accepting a free terminal, they are charged an early termination fee. Moreover, for free terminals, merchants have to sign a long-term contract.

It should be noted that the rates disclosed on the website are for low-risk businesses. Merchants dealing with online gambling or other high-risk companies are charged a higher rate which is not displayed on the website. This lack of transparency may result in merchants signing up for unreasonable rates as there is no benchmark to compare.

Despite its A+ rating on BBB, the company has complaints from unsatisfied customers online. While high-risk payment processors are prone to complaints about account holds, and terminations, the complaints that stand out are about customer service. Customer service agents are reported to be unhelpful and unprofessional, and merchants often face long waiting times before their issues are addressed.

eMerchantBroker

eMerchantBroker is also among the providers that offer the best e-commerce merchant services to online casinos. The company is headquartered in Los Angeles, California, and provides payment processing for many high-risk businesses. It offers cash advances, chargeback protection, and ACH payment processing. As eMerchant does not have a dedicated payment gateway, it partners with third-party payment gateways, including Authorize.net, NMI, and eProcessing network, to process online payments. As described above, payment gateways are a necessity for online businesses. It has iCheck, an iOS-compatible app that allows customers to take a photo of their check and use it as an actual check. Check by phone or web are also available for electronic check payments.

eMerchantBroker does not offer an interchange-plus pricing plan, provides a tiered pricing model, and charges a monthly minimum fee. While having a monthly minimum is a deal-breaker for small-scale businesses, merchants sometimes negotiated an interchange-plus pricing model, which was also priced higher than average.

The information provided about its services and rates is inadequate. There are complaints about hidden charges in the form of authorization and early termination fees, which can be too pricy for most businesses. The reviews have indicated that merchants have difficulty contacting the company’s customer support. Overall, the provider has an A+ rating on its BBB profile. Despite offering high-risk merchant accounts, its offerings are better rated by low-risk merchants.

Conclusion

High-risk businesses often involve much financial tension, but problems like sudden account terminations and funding holds can further add salt to the wounds of the merchants. High-risk merchants just starting up face an even harder time finding a suitable merchant account provider, as the fees for high-risk providers are often exploitative.

Most merchant service providers do not think of their clients and care only about fees, but that is not the case with the providers mentioned above. They are known to provide the best e-commerce merchant services for high-risk merchants at reasonable prices. However, if you still plan on researching for additional options, be careful to check online reviews and ratings carefully. Reviews can save you from financial strain and working with an inadequate company in the long run.