Due to the current Coronavirus pandemic that forced governments to impose lockdowns, online sports betting became even more popular. So if you have chosen online sports betting as a business, then today is the right time to set up a merchant account.
Online sports betting is perceived as gambling, hence, the business needs to have a high risk merchant account. But unlike low risk and regular businesses, an online sports betting merchant account application can be difficult.
However, regardless of how challenging the process is, it is critical to have an account ready. With a merchant account, you make the transaction fast and convenient for your customers.
How to Secure an Online Sports Betting Merchant Account
Any form of online sports that requires payment is considered gambling. Betting and gambling equates to RISK. And that explains why banks and payment processors are not that willing to take the risk too.
But, it is still possible to secure an online sports betting merchant account. However, the process needs to be handled by an expert in high risk merchant accounts. Processing the application by you will likely end up being rejected.
That said, you must commission the services of an experienced high risk merchant account processor that specializes in online sports betting. These processors have professional relationships with acquiring banks locally and internationally.
There is no absolute requirements list as this varies depending on factors.
But of course, there are common and essential requirements to start an online sports betting business.
- Duly accomplished application form
- A copy of your business gaming license
- A copy of your company certificate of registration
- Certificate of good standing
- Memorandum of articles of association or equivalent
- Proof of forecast transactions indicating total volume, average per transaction value, the estimated number of transactions, processing history showing the locations of the cardholders
- A copy of the register of shareholders with the company director’s signature dated at least 3 months within the submission of the application
These are just the initial documents needed. In some cases, you will be asked to provide additional documents like:
- A certified true copy of your passport
- A certified copy of your utility bill indicating your full name and complete address. Bank statements, government correspondence, water or electricity bills are the only accepted types of proof of billing.
- A bank reference or letter with information on the length of the banking relationship and type/s of account held. The reference letter should also indicate whether the account holder is an upstanding client. Make sure that the bank reference is issued within the last 3 months.
Now that you have the list of initial requirements, you should start looking for a high risk merchant account processor. Make sure that the processor has hands on experience and knowledge with online sports betting.
The ideal high risk merchant account processor must have long standing relations with acquiring banks. In addition, the processor must be committed to helping you find the business solution that best fit your needs while maintaining honesty and transparency.
Start finding that online sports betting merchant account processor now to find more about the necessary processes and requirements.