Gaming companies face many challenges, and it all boils down to them being part of the high-risk sector. A major challenge they face is payment processing, especially if they deal with international clients or even more than one location.
There are many laws and regulations that gaming companies need to comply with, and then they also face other dangers such as fraud. Here is a list of other challenges that gaming companies face:
- Fraud: there are many fraudsters who make gaming accounts for illegal activities. Therefore, gaming companies need to ensure that they make use of a service provider that helps with due diligence checks—AML (anti-money laundering) and KYC (know your customer).
- Seamless gaming: when gamers purchase a game, they want it to work perfectly from the start. Not just that, but after purchasing the game, they want to be able to play it immediately. This means that gaming companies need a financial service provider that can ensure seamless payment processing.
- High-risk business: because they trade in a high-risk sector, gaming companies usually get shot down by banks. It is therefore vital for the success of a gaming company that they make use of a financial service provider that won’t let them down in tough times.
- Global coverage: gaming companies usually have a global coverage and receive payments from all over the world in different currencies. That is why a service provider that can process payments from multiple currencies is important.
- Chargebacks: after gamers have purchased a game, and they aren’t happy with it, they might ask for their money back. This has happened to Cyperpunk 2077 when gamers weren’t happy with their purchase. A payment solution that eases these processes would be ideal for gaming companies.
- Regulations: due to ever-changing laws, regulations and rules, it is important that gaming companies stay compliant. Therefore, it is worth considering a service provider who handles due diligence checks for them.
Most importantly, payment processing is at the top of the priority list for gaming companies. But how does it work and why is it so important?
What is payment processing?
When a company offers the option to allow payments with debit/credit cards, this means they need a service that can offer them payment processing solutions. This service will help them credit the money into their account without a hassle.
Usually the financial institution collaborates with the company to make the payment process for the customer and company more efficient and seamless. The financial institution makes sure that a number of steps are fulfilled to process and authenticate the payment. They also ensure that the company receives the money into their accounts in a timely manner. Payment processing also eliminates the need for paper money.
Why is it a challenge for gaming companies?
Payment processing can be a challenge for gaming companies for these reasons:
Many gaming companies host gamers globally, which means that when they receive payments, it can be from anywhere in the world. Processing global payments can be challenging as there are many regulations that are in place. These regulations ensure that merchants aren’t fraudulent, but that they also comply with the rules of each country.
Receiving and processing payments from multiple countries can be confusing and rack up a fair amount of banking fees. As a gaming company, they can expect payments in different currencies, and having online processes to simplify the process is ideal.
In many European countries, it is important that due diligence checks be made before processing payments. This can be difficult for gaming companies as they need certain licenses to be able to make these checks. Also, they need to follow certains rules, like keeping the personal data of each client on file for five years.
For a payment to be approved, certain authentication steps must be followed to ensure that the payment is successful and trustworthy. Most gaming companies don’t have the infrastructure to host such a process and it makes it difficult for both them and their customers.
If the company does not have the right processes in place, there will be no way for them to know when a transaction is fraudulent or not. This adds another challenge to the list, as it can cause companies to lose money and become a victim of a crime.
How PayPugs can help
PayPugs, an online payment solution for all, can help gaming companies with payment processing. We are a tailor made service provider that can ensure our solutions fall within the needs of any company or individual.
We, at PayPugs, have a client centric approach and ensure that our customer service is a combination of human and innovation. We want to ensure that any of our clients are happy with our services and that we provide them exactly with what they need.
Payment processing can be made easy with PayPugs. We provide the best possible service and we can assist with all of the due diligence checks and ensure that the gaming company complies with all regulations.
To find out how we can help, book a call with us, and we will listen to the needs of any business.