If you're starting a business selling fantasy sports, you may be interested in setting up payment processing for this kind of business. While the basics are simple, you should consider the needs of your particular business model to determine the best option for your needs. Some businesses require recurring payments, while others may be subscription-based, requiring more advanced features. To avoid chargebacks, choose a payment processor that can meet your needs. There are several advantages to setting up your own fantasy sports payment processing business.

Among the benefits of using a fantasy sports payment processing is the fact that you can process eChecks, and other popular payment methods. Many fantasy sports platforms support eChecks, making it even easier to accept payment from high-risk clients. Some even support wallets, which require a simple OTP number from your phone. If you have a site offering fantasy sports, you can consider using an online payment processor that has a high level of security and risk tolerance.

Banks may view daily fantasy sports companies as high-risk because their businesses involve a lot of chance and money wagering. Because of this, banks may be wary of working with fantasy sports businesses because they increase their risk of chargebacks, fraud, and money laundering. The risk level of daily fantasy sports payment processing is so high, most banks and other payment processors automatically decline them. Then again, they may be willing to give you a discount for a low chargeback rate if you're willing to accept that risk.

While some payment processors may not be willing to take on the risk of accepting payments from players in New York, others might be willing to take a chance. Vantiv, for example, told DraftKings and FanDuel that they could no longer accept payment from players in New York, based on a cease-and-desist order from the New York Attorney General. However, a court in Massachusetts ruled that Vantiv could continue processing payments for these fantasy sports companies until the New York court ruling was overturned. Ultimately, this case shows that the payment processors have to be vigilant in offering their services to customers who do not meet the legal standards of their states.

For these reasons, fantasy sports payment processing is a necessity for those who want to set up their own fantasy sports businesses. However, the industry remains a high-risk industry despite its growing popularity, and some credit card processors will only work with these businesses if they are based in the United States. Thankfully, recent developments have changed the landscape. Earlier this year, the United States Supreme Court overturned a federal law banning sports betting, ruling that the federal ban on sports gambling violates states' rights.

For a merchant looking to establish a fantasy sports payment processing business, it is essential to find a high-risk processor that will work with a wide variety of types of payments. Some providers are more likely to approve fantasy sports merchants than others, but these companies are not necessarily the first to turn down a business. They have experience and banking connections to help them overcome these issues and avoid chargebacks altogether. If you're looking for a high-risk payment processing provider, Corepay is the way to go.