High Risk Payment Processing in iGaming Without Chargebacks

Players often become frustrated when they lose money, and as a result, they may ask their bank for a chargeback. Fraudsters exploit chargebacks as a means of profit. In both cases, gambling companies lose substantial amounts. This article explains how casinos can effectively protect themselves from chargebacks.

What Are Chargebacks?

Any company that accepts card payments faces the risk of chargebacks—an extremely undesirable process that forces the business to return funds. A chargeback is a means of protecting consumers from fraud or poor service.

Sadly, unscrupulous customers take advantage of this system to deceive businesses. They receive goods or services and then request a refund. This practice has even earned its own term—chargeback fraud.

Chargeback Fraud and Its Consequences

Businesses bear the financial burden of chargebacks—and it’s no small amount. According to Chargeback.com, for every $100 spent on chargebacks, the true cost to a business amounts to $240, including time, fees, fines, and additional losses in goods or services.

Moreover, chargebacks can damage a company’s reputation, which, over time, can make it harder to obtain high risk payment processing.

A Real Example

A player made a $1,000 deposit at an online casino. After losing half of it through poor bets, they withdrew the remaining $500 to their card, then requested a $1,000 chargeback from the bank, claiming they hadn’t authorised the transaction. Banks typically side with the customer in such cases, and as a result, the casino had $1,000 forcibly taken and refunded to the player.

Outcome: The fraudster tricked the casino and “earned” $500, while also forcing the casino to cover the chargeback costs.

Why Are Payments in iGaming Particularly High-Risk?

While casinos continually improve their fraud prevention measures, fraudsters are always developing new tactics. Chargebacks aren’t only used for fraudulent schemes—they can also occur in legitimate cases where players request refunds after losing money.

In the iGaming industry, where businesses frequently handle high-risk payments, forced chargebacks present a serious problem. Players lose money, get upset, claim fraud to their bank, and request a chargeback. Online casinos are then forced to return the funds. As a result, businesses are constantly seeking ways to reduce chargebacks or eliminate them altogether.

Crypto Payment Processing—The Key to Accepting Payments Without Chargebacks

You can reduce the number of chargebacks by providing detailed product descriptions and offering 24/7 customer support. However, the only way to completely eliminate chargebacks is by accepting cryptocurrency.

One of the key benefits of blockchain technology is its irreversibility. Once a transaction is completed, it cannot be undone; it is permanently recorded on the network and cannot be removed.

To accepting crypto payments online you need to choose a reliable cryptocurrency wallet for your business. The wallet should secure both your assets and data while offering clients the tools they need for seamless management of crypto financial transactions.

The Best Crypto Wallet for Business: Key Features and Parameters

Accepting cryptocurrency payments is an effective way to eliminate chargebacks, but to handle them securely and efficiently, you’ll need a specialised wallet for high-risk businesses. For example, non-custodial crypto wallet BitHide has been developed with the unique needs and challenges of iGaming companies in mind.

With BitHide, you won’t have to worry about asset security. Key features include:

• crypto wallet non custodial—software running on the client’s own hardware;
• Seed phrase protection;
• Real IP address protection;
• 512-bit encryption of transaction history.

The wallet also provides a comprehensive set of tools for managing crypto payments for online casinos, from bulk payouts and multiple sub-wallets to balance reporting and built-in asset risk checks.

How to Start Accepting Bitcoin Payments for iGaming Without Chargebacks Today

Accepting cryptocurrency on your website is the only way to fully protect yourself from chargebacks. Blockchain transactions are irreversible, meaning the customer simply cannot request a refund.

To ensure the process is as safe and seamless as handling fiat currency, you’ll need to choose crypto payment gateway for iGaming. BitHide is designed specifically for high-risk businesses, addressing all their needs. It integrates easily with your website and CRM system via API. You can read about how BitHide solved the challenges faced by online casinos here.

Head over to the homepage of our website to request a product demonstration and learn more about all the features of high risk payment gateway. Start accepting payments without chargebacks as quickly as possible. BitHide—your crypto bank in your pocket and the best crypto wallet for gambling!