Fantasy Sports Merchant Account
When it comes to the industry of fantasy sports, one that nets nearly $26 billion each year, this high risk vertical is one that will require a payment processing company that knows the ins and outs of this specific gaming model, as well as tips, advice, and sports forecasting that goes along with fantasy sports merchant accounts; many of which will need specialty processing due to the way they process payments, whether it be phone order based, online sales, recurring billing, and the like for your online fantasy sports merchant account.
PayKings provides payment processing for fantasy sports merchant accounts in the following professional leagues:
- Fantasy Football (NFL)
- Fantasy Baseball (MLB)
- Fantasy Hockey (NHL)
- Fantasy Basketball (NBA)
- Fantasy Racing (NASCAR)
- Fantasy College Football (NCAA)
A Fantasy Sports merchant account is classified as high risk for a variety of reasons, making it difficult to find a reliable processing partner. PayKings specializes in working with high risk merchants and we have multiple acquiring banking partners that offer Fantasy Sports merchant accounts.
Here’s a Common Scenario
You set up a lucrative online fantasy sports business and have tons of clients interested in signing up, making teams, and taking bets.
You quickly discover that you have no way to accept online payments via debit or credit cards because your business is considered high risk, which you didn’t know beforehand, and now you’re left with clients to serve and no way to accept their payments.
Rather than growing increasingly frustrated with the process of being declined and given the run-around when applying with traditional banks, or what’s worse, instead of having your fantasy sports merchant account frozen or completely dropped by an aggregate processor like PayPal or Stripe – you take the smarter, more efficient route of seeking out a reliable and knowledgeable high risk merchant account provider.
Why Do I Need a High Risk Fantasy Sports Merchant Account?
When it comes to sports forecasting and fantasy sports, it isn’t always all fun and games, and the pitfalls of this industry can come with a high ticket price in customer-initiated chargebacks. One of the most common outcomes for chargebacks are due to those customers who are sore losers. While some customers will win big, others will not, and generally those who do not will chalk it up to a fair loss and play again – but others, and this section of “others” is a significant percentage, will be upset by the loss and file a fraudulent chargeback in an attempt to back out of paying for the service all together.
A main contender for fantasy sports merchant accounts being classified as high risk is due to the excessive number of chargebacks, also know as a company’s chargeback ratio. When chargebacks occur, they go unpaid by the business owner or merchant, which is known as one of the most significant losses of financial growth for credit card processors, which are closely monitored by both the sponsor banks and credit card brands (like Mastercard, Visa, AmEx, etc).
Sponsor banks will shut down any fantasy sports merchant account that regularly exceeds more than 2% in chargebacks and will be sure to slap a fine on the bill of whatever payment processor that set up your merchant account.
With the ratio of chargebacks that occur for fantasy sports merchants, most traditional banks won’t even consider offering payment processing solutions to a high risk business like this – there’s just too much of a liability and too much uncertainty involved.
Why Does Needing a High Risk Fantasy Sports Merchant Account Matter and How Can PayKings Help?
Credit card payment processing can be pretty straightforward, but what’s most important for high risk merchant accounts is choosing a provider that has the kind of expertise you need to get proper underwriting for your fantasy sports merchant account, and a company that has been in the business long enough to have acquired relationships with sponsoring banks.
Not being selective with who you decide to go with to set up your payment processing will essentially decide on the future success and longevity of your business as a whole. High risk merchants aren’t necessarily the first businesses to get snapped up by banks like Chase or Wells Fargo for a fantasy sports merchant account – in fact, they generally tend to quickly decline any high risk applications that come across their desks.
This means that what was probably your Plan B, quickly becomes your Plan A, and without access to options that make sense for your business model, you can find yourself scrambling for solutions. What should you do? Well, first thing’s first, you need a high risk merchant account provider, like PayKings, who so all their underwriting in-house and have the expertise and banking relationships to get you approved for a fantasy sports merchant account and taking payments in no time.
PayKings can get you approved and accepting payments faster than you can say “touchdown!”
PayKings understands the unique needs of different Fantasy Sports related businesses and has established a 24+ acquiring banking relationships to become an expert in getting Fantasy Sports companies accepting online payments.
Fantasy Sports Merchant Account Experts
- 20+ Proven Bank Relationships
- Medium/High Risk Accounts
- Fast Fantasy Sports Account Approval
- Large Merchant Case Studies
- E-Commerce and Retail Options
- B2B Vendors Supported
Multiple Payment Solutions
- Multiple E-Commerce Gateway
- Chargeback Prevention
- Credit Cards
- B2B-Level II/III Data Discounts
- 3D Secure Frictionless Checkout
- Mobile Payment
- EMV Readers
Intuitive Compatibility & Support
- Gateway Recurring Billing
- E-Commerce Cart Plugins
- Developer API / Docs
- International Merchant Accounts
- Dedicated Account Managers