For industries operating in the gaming, adult entertainment, and CBD sectors, the ability to accept payments online is a critical factor for success and sustainability. While these industries drive significant online revenue and attract a wide range of customers, they often face greater challenges in accessing standard payment processing solutions due to regulatory complexities, perceived risks, and evolving market trends. Enter high risk payment processing, a specialized service designed to meet the needs of merchants in these sectors.
This article explores the core benefits of high risk payment processing tailored for gaming, adult, and CBD businesses, supported by data and trends that highlight why such solutions are not just preferable, but essential for ongoing growth.
Why Traditional Payment Processing Won’t Cut It
Many payment providers categorize gaming, adult, and CBD as high risk due to chargeback rates, compliance requirements, and fluctuating legislation. Standard merchant accounts often reject applications from these sectors, restrict their processing capabilities, or charge prohibitive fees.
High risk payment processing bridges this gap, offering tailored solutions that support business growth while mitigating critical risks.
Seamless Global Payment Acceptance
A primary advantage of high risk payment processing is the broad spectrum of accepted payment types and geographic coverage. Gaming, adult, and CBD companies often serve global markets, each with different currencies, languages, and regulations.
Specialized processors provide support for:
- Multiple currencies, enabling smoother cross-border sales
- Diverse payment methods, including credit cards, digital wallets, and even cryptocurrency
- Localized payment options, raising conversion rates in target regions
This expanded acceptance reduces cart abandonment and fuels market expansion across continents. According to Statista, the global online gaming market alone surpassed $60 billion in revenue in 2022, with a significant portion attributed to international transactions. Access to global payment methods ensures businesses can capitalize on these trends without being constrained by borders.
Enhanced Fraud and Chargeback Management
High risk industries are more susceptible to fraudulent transactions and chargebacks, which can be costly and damaging to merchant reputations. High risk processors employ advanced fraud detection systems, such as AI-driven risk scoring, device fingerprinting, and real-time monitoring.
These solutions help by:
- Reducing the frequency and impact of fraudulent activity
- Lowering overall chargeback rates through proactive alerts
- Shielding merchants from unnecessary fees, reputational harm, and even merchant account termination
Numerous studies indicate that adult and gaming merchants experience chargeback ratios up to three times higher than other online businesses. Having payment partners experienced in these risk environments ensures continuity of service.
Customizable Compliance and Regulatory Support
Navigating regulatory frameworks is a challenge, especially as rules evolve around online gaming legality, age verification in adult services, or compliance with CBD sales at state and national levels.
High risk payment processors offer:
- Built-in KYC/AML frameworks
- Integration with age verification and geolocation tools
- Dynamic protocols to adapt to regulatory changes
Press releases from regulatory bodies show ongoing changes to policies affecting all three sectors. Merchants partnered with high risk processors stay agile and reduce costly legal errors, minimizing downtime as new laws are enacted or updated.
Scalable Solutions for Rapid Growth
The online gaming, adult, and CBD industries are characterized by fast-paced growth and high transaction volumes, especially during trending peaks. High risk payment processing platforms are engineered for scalability, accommodating spikes in activity without service interruption.
Key benefits include:
- Robust infrastructure that supports thousands of simultaneous transactions
- Automatic limit adjustments to allow for expansion during popular sales cycles or launches
- Reliable uptime and ongoing technical support
Statistical reports forecast the regulated online gaming market to expand by 10% annually through 2028, while projections for legal CBD sales suggest a global market value topping $20 billion by 2025.