As with other ways to gamble, pari-mutuel wagering becomes more and more digitalized. Today’s customers have fast and easy access to place wagers online, presenting new growth opportunity for gaming and wagering merchants. This post will explore the top three ways that ACH Payments for pari-mutuel wagering are a winning choice for managing funds for both entries and prize money.
A Primer to ACH Payments for Pari-Mutuel Wagering
Automated Clearing House (ACH) is an electronic network that lets you transfer funds to and from bank accounts via direct debits and credits. Not all banks have the infrastructure in place to process ACH payments or approve higher-risk merchants. Sometimes, a third-party processor, such as Actum, is used by pari-mutuel businesses to securely handle the processing of ACH payments.
When you use the ACH electronic network, you can initiate Debits (when you pull entry funds from a player’s account) and Credits (when you push prize earning funds to a player’s account). Plus, when you offer ACH as a new payment method to players, you unlock an additional revenue stream—one that has a lower processing cost than wire transfers, paper checks, or credit cards. You can learn more about how ACH works in our post, ACH 101: Understanding the Automated Clearing House.
#1: ACH Lets You Maximize Conversion
In today’s era of online betting, the customer is king. When you offer more convenient pay-in and pay-out options, your player conversion rates can get a leg up.
Online pari-mutuel wagering is a faster and easier way to gamble. And, when bets are pooled, on-time payouts become just as critical to the customer experience. Controlled disbursements, or credits issued to winning players at the same time daily for pooled bets, can help you make sure players, including VIP account holders, receive their earnings on time. As an added benefit, you’ll have predictable cash flow with an ACH Credit schedule.
For pay-ins, or ACH Debits, Actum is always online, so your players never miss an opportunity to make a payment. Plus, with our Authentecheck™ solution, it’s easy for a player to submit an entry simply by using their online banking login credentials. When you minimize payment drop-offs, you’ll also maximize your cash flow.
#2: ACH Can Effectively Combat Chargebacks
Chargebacks can happen frequently in the pari-mutuel wagering industry, often as a result of players and/or their family members disputing entry fee charges with their banks. With Actum Authentecheck™, you can reduce chargebacks by better protecting your business against fraud and retaining more robust transaction data in the event that a dispute does arise. You can also use Actum’s dynamic bank descriptor feature to include more details related to transactions on customer billing statements, and thereby reduce the likelihood of disputes.
#3: ACH Helps You Stay Secure & Compliant
Security is one of the most important parts of a merchant’s website. As a merchant, you need to make sure that customer details stay secure, and that your ACH payment processor avoids fraud risks. If gambling websites are left unsecured, they are susceptible to hackers that can transfer money from customer’s accounts.
Actum considers information security its highest priority at all times. With NACHA-compliant fraud detection and network security protocols, you can rest assured that when you process payments with Actum, you won’t run into any trouble.
Learn More About ACH Payments for Pari-Mutuel Wagering
Pari-mutuel merchant websites are popular, and you’ll need to go all-in to get a competitive edge. Efficient payment processing using ACH is how you can cross the finish line. When you choose Actum, you’ll have no hassle managing your website pay-ins and pay-outs.
Want to learn more about how ACH payments with Actum can help support your business? Check out our solution brief, ACH Processing with Actum.