Bookies are looking for new and various payment options to accent their online sportsbook. If you are a bookie and still taking cash only, stop this right now, because you are losing money. We realize that credit card options are a good one but they cost you a lot of money in fees and there is a risk factor that you probably don’t want to deal with.
The Credit Card Risk—
- Accepting credit card is great until you have a new player that decided he doesn’t like losing so he calls his bank and explains to them that he has never heard of you and that his card was misused. Nine out of ten times, the bank is going to honor the client and refund the money. This is called a chargeback. You are stuck and there is nothing that you can do, you have lost the money. The “big boys” of the online gaming world take credit cards for one reason, the profits outweigh the risk. They have tens of thousands of paying clients that pay by credit card and there is never a problem. Don’t misunderstand, they have a huge chargeback problem and most of the online bookmakers have a processing team dedicated to dealing with credit cards. You are not in this position. You can’t afford one chargeback, let alone hundreds of dollars’ worth of chargebacks in one evening.
- It may be tempting to offer deposits by credit cards but it’s probably a bad idea while you are in the building stages of your online sportsbook. The risk is simply too high.
MoneyGram/Western Union—
- These deposit options were huge five years ago and beyond. They are not huge at any level today. Both of these companies have tightened their belts in an effort to thwart off money laundering. Both will work for your client for a short amount of time, however, when the action becomes heavy, they will restrict your clients. Many online bookmakers use what is called ” donkeys” to pick the money up. A donkey is someone that picks up money from either WU or MG and the money is sent to them personally from your client. You will need to pay a fee for this service, and you will need several donkeys to help run this operation. WU and MG are quickly becoming far too risky and way too much hassle. Your time is more valuable than this.
PayPal—
- We don’t recommend the use of PayPal for the simple fact that it’s expensive. It’s quick, easy and the money is in the bank and your players can be playing fast if you don’t mind the fees and the electronic paper trail. Most bookies simply don’t want to deal with the paper trail. If you take in a lot of money, the IRS could come calling. You certainly don’t want this hassle.
Bitcoin—
- Bitcoin has come on the scene and quickly become the best way to pay and be paid. We are not here to advise you to invest in Bitcoin or start mining for Bitcoin. What we recommend is that you open a Bitcoin wallet and encourage your player to pay using this method. It costa a fraction of any other payment service and your clients can have the money in quickly. You can also payout much quicker, thus keeping your clients happy and playing.
- We have no idea what Bitcoin might be worth in a year or if it’s a good idea to pay for anything else using it. What we do know is that Bitcoin works great with online sportsbooks because it’s quick, easy, and the IRS has little control, if any.
Operating a successful online bookie business takes some dedication and some work and we certainly don’t recommend going this process alone. Find a great pay per head that charges a fair price for around $7-$10 per head, and you will see an immediate difference in your bottom line. Stop wasting money with credit card processors and other expensive ways in which to take deposits. There are many ways to receive money. Some folks accept US money orders, some accept e-check, and yet others work with the many online wallets such as Skrill. We recommend Bitcoin. It’s safe and fast and you can convert to US currency quickly.
Learn more about Pay Per Head:
- What is Price Per Head?
- Choose our Bookie Software
- We Are a Pay Per Head Sportsbook
- What is Pay Per Head?
- How to Be a Bookie