To make a gambling business prosperous, it is necessary to provide clients and potential customers with a convenient way of using the services. And one of the most critical aspects in this regard is payment solutions.
It is impossible to make a profit and generate money if your customer cannot make a simple deposit or is unable to cash out the money. And for this elementary reason, we are going to raise the topic of payments, namely casino gateway payment solutions, and touch on all its aspects. So, in this in-depth article, we are going to explain to you what a payment gateway is, its working algorithms, different types, and many other things related to the question of the right choice of the right gateway payment solution. So, let us get started and learn more about it and its integration into your online casino.
What is a gambling payment getaway?
At first sight, it seems like a payment gateway is a complicated term. However, there is nothing complicated to understanding the interpretation of it. A payment gateway solution is an innovative and cloud-based technology that aims to help transfer the monetary funds from one point to the final destination. To simplify it, a payment gateway plays a role in authorizing the transaction flow.
In general, the transfer is a two-step operation that includes the transfer of banking data to decide whether to accept the payment or decline it and the transfer of actual money from a buyer (in our case – a gambler) to a seller (online gambling platform). So, the essential idea of every casino payment gateway is the money transfer from a gambler to an online gambling establishment and vice versa.
How does a getaway payment solution work?
The working process is more complicated than the definition of the term, but we would like to explain it as simply and straightforwardly as possible. As you have already known that every payment casino gateway solution has one purpose to organize a proper money transfer from point A to point B, and the transferring process can be divided into several steps.
- 1 Step. The first step requires the provision of your personal bank account data because without this information any financial transaction will not be technically possible. To put it simply, it is necessary to fill out the mandatory fields, which ask a gambler/bettor to enter such bank details as card number, card holder’s name, etc. After entering this information, the chosen online casino receives the player’s request and submits it.
- 2 Step. During this step, the chosen gambling operator sends this request to a payment gateway (this is the first appearance of the technology in this financial cycle).
- 3 Step. When the information has reached its destination, the payment gateway directs it to the financial institution (the next step is crucially important).
- 4 Step. As we mentioned above, the fourth step is a key player in this cycling chain. Why is it so? It is simple – the financial institution should check the correctness of your banking data. The check is a mandatory measure that has the purpose to identify the player’s solvency – whether the player has sufficient funds in their bank account or these funds are not enough to cover the expenses. In case of a declined request, the money transfer cannot be processed further. And if you have enough money to pay for the casino services (depositing purpose, for example), the financial institution authorizes the transaction.
- 5 Step. And finally, the financial institution sends the approved request to the payment gateway to send the monetary funds to the online casino.
As you can notice, this process is explained in a simple manner, and if you need a more clear clarification of the process with images and schemes, you can check out the image above.
Different types of gambling gateway
The next moment that is needed to be clarified is the understanding of different types of casino gateway solutions in online casinos. A casino payment gateway has three different types that have their own working principles and features. Among the types are: redirects, off-site payments, and on-site payments. So, let us consider all of them in detail.
Redirects
From the name of this type (sometimes, it is also called a hosted gateway), it is getting apparent that you will be redirected somewhere else during the processing of any financial operation. And this is a huge advantage, considering the side of every online casino because there is no need to be worried about all the processes of integration and maintenance of any gateway.
For example, a player has created a new account in your online casino and initiated a depositing process. After clicking the Deposit button, the player is redirected to the host’s website or payment service provider. On this separate page, the player is obligated to enter payment details before returning to the online casino’s website.
What are the primary advantages of this type for online casinos? They contain simplicity and safety. And you do not need to think about its setup because the host takes care of this task and other related complicated things. Moreover, this type of casino payment gateway has a reputation as the most secure choice.
Off-site payments
Off-site payment, also relates to checkout on a website, is another type of online casino gateway, which, in some way, is closely related to the mentioned above type. The single difference lies in the working process. Casino players are required to fill in their banking details on the casino’s website. However, the payment process is processed via the chosen payment provider.
What are the primary advantages of off-site payments? It will not be surprising to you, but the advantages are the same compared to the redirects. And you are still not able to control users’ experience. However, there are fewer responsibilities.
On-site payments
And the third type of payment gateway is on-site payments. It is a completely different type, and it fits perfectly for those who want to control everything If it is necessary to have a host to process any financial operation, in this case, it is mandatory to have your own solution. Usually, this type of payment gateway matches great with big brands that can afford such an expensive integration. Bear also in mind that all responsibilities are on your own shoulders.
What are the primary advantages of on-site payments? The first and foremost benefit of using this gateway type is the capability to control everything. On the other side, with such extensive control, the level of responsibility is going up as well. You can also provide your API solution to other gambling platforms and charge them for using your services.
Different types of payment methods
After getting to know all the types of online casino gateway, it is the right moment to learn more about a wide range of payment options that are working alongside the payment gateway. The variety of payment solution is wider, and it is worth learning something about all of them to some extent. And it is also worth defining the difference between a payment gateway and a payment method. The first one refers to an innovative and cloud-based technology that makes it possible to process any financial operation. And the payment method is a way players pay for the services (like making deposits or withdrawing their winnings). The difference is clear, so let us go ahead and introduce a variety of payment options.
Debit cards
Debit cards are the most widespread payment method around the globe. The majority of cardholders have exactly debit cards. According to the World Bank data (dated 2017), people in 142 counties use this type of card, and the average percentage of users consists of 42% (the highest value is 98.81% in the Netherlands). And what is more, the debit card is the most popular choice for making purchases both online and offline.
From the perspective of players, this option is one of the securest because it obtains an extra layer of protection – all the transaction is going through Visa and Mastercard. And this measure protects players to face any type of fraud.
Credit cards
This type of payment method is similar to debit cards. However, it has one significant difference – the player pays for the services with the borrowed money instead of their own. Putting this simply, the financial institution loans money to a player. On the other side, the player is obligated to pay the debt on time but with a certain percentage in return.
Some online gambling platforms accept credit cards as well, but the legislation in some countries does not allow them to do so. And it is highly recommended to get to know whether it is legit to apply this payment method to your online casino in a specific country or not.
It will be interesting for you to know that credit cards take the second position in the ranking of the most usable payment solutions globally.
E-wallets
An e-wallet or digital wallet is a special payment tool that allows its users to process any financial transaction quickly and without difficulties. This type of payment method has a direct connection to credit and debit cards because this payment tool should be linked to the player’s debit or credit card. Otherwise, a money transfer cannot be done.
It is also worth knowing that some digital wallet companies provide their customers with specifically developed cards that can be used as the mentioned above analogs
Touching on the security aspect of any e-wallet solution, digital wallets are safe and well-protected as well. Moreover, a player can top up the e-wallet for a needed amount of money and be sure that only this sum will be charged from this balance and nothing more.
And one of the greatest advantages of digital wallets is the absence of the need to enter sensitive data, like CVV-code, date of expiration, etc.
Pre-paid cards and vouchers
One more type that should be mentioned is pre-paid cards and vouchers. This perfect payment method is a great option for people who do not want to share any data with an online gambling platform. The reason for the high level of anonymity lies in the working process of pre-paid cards and vouchers. To get a voucher or a pre-paid card, it is necessary to go to a physical store and pay for this card in cash. There is no single data required – only cash.
After completing these steps, the seller will give a customer a special card with a digit code (usually a 16-digit code) that should be entered in a special line during the depositing process. Take into account that this payment solution works on one side only. This means that it is possible to charge a casino account, but the withdrawing process can be impossible.
From the customer’s perspective, this payment method helps save anonymity. But as it may seem, it has a little drawback.
Bank transfer
Talking about the opportunity to withdraw money from online gambling platforms, a bank transfer is the most widespread option. It is almost impossible to find a reliable online gambling establishment that does not have such an option in its banking list (we are talking about the withdrawal aspect).
What is more, all transactions via a bank transfer are highly protected because banks are in charge of what is going on with them. So, if a player considers the most trusted and secure payment solution to make a payment in an online casino, a bank transfer is the right choice.
However, the price of the highest level of data protection is time. Making a deposit to a casino, it is a one-moment action. But the process of withdrawal may take days (to be honest many days – up to 30).
One more advantage that should also be mentioned is the availability. Most online casinos (the trusted ones) have this payment method in the depositing and withdrawing lists. So, it is also worth considering this payment solution while deciding which payment methods should be on the list.
Cryptocurrency
Cryptocurrency is the latest trend in gambling in terms of payments. This online payment solution has become popular relatively recently, but it already has a huge fan base. But what is the reason for such a boom? It is simple – players’ payments do not go through the check of banks. This crucial moment allows gamblers all over the world to use the gambling services independently of their location and residency. And it does not matter whether online casino gaming or sports betting is prohibited in the specific territory or not.
Besides this pleasant advantage, crypto-payments have also the same level of security and protection as credit and debit cards have. And what is more important, the payments processing time is way greater compared to the other payment options. Usually, the depositing process takes around one minute, while the withdrawing procedure may take up to 15 minutes.
Thus, it would be also great if your online casino allows gamblers to charge their casino accounts and cash out the winnings while using this specific payment option.
On that note, it will be useful to go further and discuss more technical details, like the process of integration of the chosen payment gateway to an online gambling website.
How do online casinos integrate payment systems?
After getting to know all the different types of payment gateways and becoming aware of a variety of payment systems, it is the right moment to deepen your knowledge of their integration processes.
The integration of a payment gateway
First of all, it is necessary to integrate a casino payment gateway before going on with the integration of payment systems. And as we already mentioned above, there are three different payment gateway variations that can be integrated into your online casino. So, considering this fact, the integration processes will depend on the chosen gateway.
| Payment Gateway | Integration Process |
| Redirects | The integration process is going through an API. It is necessary to implement a special HTML code into a Payment button. This code intends to validate, collect, and send the data via the casino payment gateway.This option fits perfectly for small online gambling establishments that are comfortable with using external processors. |
| Off-site payment | The integration process of the off-site payment gateway is similar to the redirects, and the essential ideal lies in the chosen API. The only thing required is the implementation of HTML code.This gateway solution is a great choice for gambling businesses of all sizes. |
| On-site payment | This is a completely different approach to integration because no third parties are involved in it. Before starting the integration procedure, it is required to get special permission (a certificate) from PCI DSS (the term is related to an international standard and will be explained later in the article). After completing this step, it is necessary to develop your own API. To do this rightfully, it is highly recommended to hire a professional engineering team.This payment casino gateway matches with medium or large gambling businesses. |
In addition to these common ways of integration, every online gambling establishment can integrate the needed payment gateway using one out of three remained forms – web integration, mobile integration, and e-commerce plugins.
What is the price of the integration?
And what is more important to know is the pricing list of the integration process. While trying to integrate a casino payment gateway using third-payment services (not your API solution), the integration cost is not expensive. After implementing a payment gateway solution from the third-party services, an online gambling platform does not pay anything for this. However, it should pay a fixed percentage plus a fixed price for every transaction. In some cases, third-party API will charge you a monthly fee, which can be $20 or $30. The fixed percentage is between 1.5% and 6%, and the fixed price varies from 30 cents to 60 cents per single transaction.
If you consider the on-site payment gateway, it is highly recommended to be ready for super-high expenses. It is challenging to say the exact price of the integration. The ground floor of the pricing lists starts from the point of $150 000 and may reach the level of $1 million. This cost is justified because this amount of money includes the price of an engineering team, obtaining the PCI certificate, API documentation, etc.
You may think that this price is extremely high and may not be worth it. However, these expenses bring many benefits in return. Among the benefits are:
- Lower transaction fees – the lowest possible level is 0;
- Customization – which may help you apply any feature you would like to have;
- Make an offer – it is possible to provide your API for other online casinos and make from this integration an additional profit.
How to choose a payment getaway for gambling websites and not regret it?
For every online casino and betting operator, it is exceptionally crucial to come to the question related to selecting a gateway thoughtfully and carefully, considering all the aspects. And in this section, we will give you some advice and recommendations that you need to pay attention to before deciding by choosing this or that online casino payment gateway.
Your target audience choice
The first thing that should be analyzed is your target audience. It is mandatory to know what most of your audience use regarding payment options to be more precise. Make sure that the chosen casino payment gateway fits all the preferences of your clients (potential gamblers/bettors), and they can easily make a deposit or withdraw their winnings conveniently and without problems.
For instance, your gambling business focuses on the European region. It makes sense to choose Visa, Mastercard, Maestro, or PayPal for this simple reason. Because if you have selected Interac or PhonePE, European players will face specific difficulties while processing their payments. As an end effect, your online casino will not be able to generate a profit because your clients will not be able to process any payment.
Transfer speed
The second, not less critical moment, is related to the speed of processing any financial operation. Time always matters, and your customers know this for sure. Knowing this gospel truth as well, your primary task as an owner of an online casino is to do research and learn what a casino payment gateway (a payment system) can provide you and your clients with such a fascinating opportunity.
The best possible option is always the fastest payment solution. For instance, dealing with credit/debit cards and bank transfers, the customers will be provided with the highest security level. However, the processing speed for withdrawal will be less competitive than e-wallet solutions or crypto.
It is great to have the most secure payment solutions, but the fastest options should also be included in the list.
Transaction fees
One more moment that can play a critical role for your customers and, consequently, to the growth of your business is a fee. Most online gambling platforms provide their clients with the best possible payment options that exclude any transaction fee. Nevertheless, online gambling houses and sports betting operators still obligate their players/bettors to pay an extra amount of money for any processed financial operation.
The transaction fee is usually fixed and not high, but it would be better not to pay additional money from the customer’s perspective. The fee varies from a fixed sum to a fixed percentage. Under normal circumstances, the sum can be up to one dollar, while the fixed percentage does not exceed the edge of 6% (an average – 2.6%). For a regular gambler, it is not that much, but the wallet of every high-roller can feel every charge significantly. So, it is highly recommended to ensure that your online casino can offer a free-to-pay option.
Security and data protection
Security and the safety of personal banking data are some of the most demanding things, and players carefully check this moment out to ensure that their data and money are safe. Therefore, it is worth choosing a casino payment gateway with the greatest protection layer for sensitive data. Otherwise, there is a high probability that your clients or potential bettors will avoid dealing with your online casino.
As already mentioned above, the most secured payment solutions are credit and debit cards. Of course, e-wallets, like PayPal, Skrill, and Neteller, as well as crypto payment solutions, also have a great level of protection.
A strong compliance record
This aspect has become vital in recent days, and many customers pay attention to this factor. It is not enough if the chosen online gambling establishment provides its customers with convenient payment systems, no fees, fast processing time, and the greatest level of security. The customers want to see a strong compliance record. But what does it mean?
Putting this in other words, every online gambling operator has to obtain some certificates, like PCI-DSS and GDPR. The first abbreviation stands for Payment Security Industry Data Security Standard, and it is directly related to the information security standard that the company should follow. The second is General Data Protection Regulation. From these words, you may assume that a regulatory body regulates all the casino’s payment gateway activities.
And if a customer sees these signs, they can be ensured that the online casino is reliable and honest to its customers.
Top mistakes when choosing a casino payment gateway
It is not a wonder that gambling is one of the most profitable businesses that attract many businesspersons. And it is mandatory to have an integrated payment gateway to generate a profit. However, many businesspersons face some mistakes that make their experience bad. Thus, we have conducted a list of the most common mistakes that every businessperson has had while selecting a casino payment gateway.
Seeking the lowest transaction fee rate
The essential idea of doing a gambling business is to reduce production costs and try to make as much money as possible. Therefore, it is not wondering that every casino owner is looking for an option that will help reduce costs in terms of processing transactions. The cheapest payment gateway solution can be turned into harmful consequences for your gambling business. So, it is highly advisable to pick a gateway option that perfectly fits your needs and budget.
Provision of convenient payment options
It is necessary to understand that some payment options may be convenient for your customers. However, you need to know that some of your customers will be unpleasant with the complicated payment options to process. Thus, it is recommended to analyze your target audience and make sure that only convenient payment methods are on the list of available ones.
Aspects of security
And the final moment to pay attention to is the aspect of security. Every single transaction should be protected from any kind of fraud and scam. For this simple reason, it is worth paying attention to third-payment services that obtain a reliable international certificate, like PCI DSS, and can guarantee the highest level of security.
Main difficulties in organizing online casino payments
While organizing online casino payment solutions, it is inevitable to avoid troublesome situations or difficulties that may suddenly appear on your way. In this section, we have gathered the common difficulties that you may come across:
- The lack of payment options. As mentioned earlier, your online gambling establishment should have enough payment options that your customers or potential ones can use.
- The payment limits. After integrating a payment gateway and payment methods, your clients can face a problem with a payment – whether it is a depositing process or a withdrawing procedure. As a good example of a depositing limit, you cannot make a deposit lower than $50 in some online gambling establishments.
- Technical issues. While trying to make a payment, a player can have a bad time and experience. Therefore, it is necessary to prevent your players from possible technical errors.
- Instructions and payment guidelines. For some players, it is essential to have a step-by-step instructions or a guideline to process a payment. These informational guidances will guarantee a great gambling experience for players without payment difficulties.
Top 5 most popular payment solutions
It is always useful to be aware of the latest trends in the financial market and what payment solutions are most in-demand among players. So, we have prepared a listing of the five most popular payment solutions that are globally used by millions of people.
Visa
Without any doubt, Visa has become one of the most popular payment solutions among the citizens of over 200 countries across the globe. The secret ingredients of such extreme popularity are the long-way presence in the financial market and hundreds of millions of satisfied clients. What is more, this payment company provides its customers with the highest data protection and security level. However, it takes more time to process any financial operation.
Even though all transactions require more time, people give their preference to exactly this payment method. With its help, a player can charge their casino account or withdraw the winning without worries of getting deceived.
Mastercard
The second largest and most trusted payment company is Mastercard. This international payment company has been operating in the financial market since 1966. The operation area consists of over 200 countries as well. So, you can see that some of the players may consider this payment option as one of the most convenient.
PayPal
Talking about more modern solutions, PayPal is exactly this one. People across the globe use this payment method to make online purchases and make their deposits in different online casinos (that have such an option). What is more, this payment method is simple and straightforward in terms of usability, and any gambler can process a payment without a second.
Touching on the aspect of security, this payment solution implements the latest protective measures to ensure that the data of the customers are safe and secure.
Paysafecard
One more digital payment solution is a Paysafecard service. This payment method is primarily based on the method of pre-paid. One of the greatest benefits (for players, of course) is that there is no need to provide an online gambling operator with their sensitive data. The main working principle of Paysafecard is obtaining a voucher, which contains a 16-digit code. And the great news is that many online casinos offer this payment method.
Cryptocurrency
And the last suggested payment solution is a crypto payment. You probably know how this sector is developing and growing its popularity. Therefore, it is easy to assume that this tendency is close to the online gambling business. From year to year, more and more online casinos allow their players and bettor to charge their accounts with the help of crypto. And one of the primary advantages of cryptocurrencies is the capability to process any financial operation independently from the location (even if gambling is prohibited in the country). Moreover, this payment option also has the greatest level of data protection and fast processing time. These aspects will be beneficial for both you and your players.
What do numbers tell about the payment methods?
And if you do not believe in this list, the statistics will prove the correctness of the words. According to the data collected by Statista, the share of digital wallets is getting larger and larger and confidently taking the first position in the ranking list. Credit and debit cards take the second and third positions on the list. And bank transfers close up this list.
Looking at the growing tendency of digital payment methods, it is worth indicating that the usage of digital and e-wallets will increase by 2024, and the share of credit/debit cards and bank transfers will go down. The table below will give you a better understanding of the picture of the payment methods in the global financial market.
And if you a looking for statistical data related to Europe and the Europeans, it is worth highlighting that the tendency remains almost the same (the percentage is different). So, take a look at one more table to see what the future awaits for this region in terms of payment solutions.
PayPers present another interesting statistics in its global report (the data represents the statistics for 2021). It shows that 2.1 billion people use e-wallets to process any online financial operation. What is more, the share of the users is 26%.
Conclusion
To sum up, you see what place takes a payment gateway in the chain of profit, and you know that the properly chosen gateway and payment systems play a crucial role in the further development of your gambling business to make it bright and prosperous.
Read more: Best Gambling Payment Providers
