Fantasy Sports Merchant Account And Sports Forecasting Payments
Almost any kind of business that allows customers to purchase a product or service, especially if those transactions take place through a website, requires a merchant account to give customers the freedom to make their purchases with a debit or credit card. However, businesses in some industries inherently have a more difficult time obtaining payment processing accounts than others, simply due to the way those industries are viewed by banks and processing companies. Sports forecasting and Fantasy Sports websites are among the businesses that face these challenges, as many standard payment processing companies will simply refuse to provide a merchant account.
How Do I get a Fantasy Sports or Sports Forecasting Merchant Account
The difficulty in obtaining a fantasy sports or sports forecasting merchant account comes not from any problem with the business of generating and selling sports forecasting tips, but from the fact that customers who buy these tips and picks are generally doing so for the purpose of gambling. Gambling is one of several industries, along with adult entertainment, cigarettes and e-cigarettes, and collectibles and antiques, that banks and payment processors view as inherently high risk, and those institutions will generally not offer accounts to companies that deal even tangentially with any aspect of those industries. Businesses that offer products or services under the umbrella of any of those industries need to turn to a processor that specializes in high risk merchant accounts in order to accept payment card transactions. For sports forecasters and fantasy sports merchants, this is true despite the fact that the transactions processed through a sports forecasting or fantasy sports merchant account are not themselves more vulnerable to chargebacks or fraud than those of any other business, assuming the website is updated frequently and the tips and picks provided are reasonably accurate. Simply having a connection to gambling means that sports forecasting is perceived as high risk, and rather than trying (unsuccessfully) to change a financial institution’s decision on that score, seeking a sports forecasting casting merchant account through a high risk processor is the best approach.