If you are about to start a Fantasy Sports league and have been looking into your options for processing payments from people who want to join it, you have probably realized that it’s not an easy choice. Read more about Fantasy Sports Payment Processing here.
First of all, few vendors will allow you to open a merchant account for Fantasy Sports because it is considered high risk. You can’t go to PayPal, Stripe, or some other global payment processor companies either – they will quickly shut down any high-risk account.
This leaves you looking for a high-risk business merchant account. While it certainly narrows your options, it still leaves you with plenty of risk for making the wrong choice.
What’s the big deal with choosing a Fantasy Sports Payment Processing provider?
The big deal is that, just like in any industry, there are some rotten apples in between. Only here you don’t just buy a faulty product that doesn’t work – you sign up for a service the cost of which can potentially escalate to a degree that eats away at your profit margins.
You need to make sure that your cash flow is protected, and by choosing the wrong merchant service provider, you may end up paying hidden, excessive fees.
Then you can find yourself in a situation, where you have to choose between paying far more than you expected and losing thousands of dollars – or interrupting your cash flow in order to switch to a different provider, and lose potential earnings this way.
How do I make the right choice?
Are terms and the fee structure clear?
Is it easy for you to understand how much the service will cost you, depending on different revenue scenarios? Can you predictably calculate the total cost? Is there a minimum monthly amount that you have to generate? What else does the fine print say about terms?
Is it easy for you to get answers to your questions?
Does the representative take time to answer all of your questions, or do you feel like you’re being stonewalled on certain topics? Does the person you’re talking with actually know the entire fee structure, etc.?
Is it too easy to get accepted?
Sometimes things really play out in our favor very easily. But when it comes to processing credit cards, your potential vendor should hold some kind of standard for the customers they will accept. If you feel like it’s too easy to get a good deal from them, maybe it’s because there are hidden fees you haven’t yet discovered, or they simply run a very loose business that can’t be relied upon.
5 Star Processing can help you with Fantasy Sports payment processing
5 Star Processing specializes in high risk merchant accounts, including Fantasy Sports payment processing companies. We will gladly answer any of your questions so that you feel safe in your choice of payment processor companies and can get on with building your League.