A First Data White Paper
Winning Payment Strategies
to Keep Players Coming Back
Today, players are demanding more convenience, rewards and security than ever before. As result,
forward-thinking operators in the online gambling and gaming industry are looking for ways to strike a
balance between offering better, more engaging player experiences while safeguarding their payments
and improving player loyalty.
Winning Payment Strategies to Keep Players Coming Back
A First Data White Paper
Introduction
Right now, the online gambling and gaming industry is expanding to meet players’ evolving needs. There
are more land-based casino and online gaming/gambling options available than ever before. Armed with
knowledge, choice, and purchasing power, today’s players expect and demand security, convenience, and
rewards.
This presents a big challenge for gaming/gambling operators. Attracting and retaining players to your
casino is critical, but it’s also important to encourage them to spend money in other areas of your property
and surrounding community. To be successful, operators must find a way to provide the ultimate player
experience regardless of their gaming/gambling preferences. This means striking the right balance between
keeping players happy and keeping them protected.
Players want the freedom and flexibility to add funds, withdraw winnings, and conveniently see their
balances. However, many gaming/gambling establishments either fail to offer several payment options or
get stuck dealing with multiple providers.
To meet player needs and simplify payment management, forward-thinking operators are using
comprehensive payment solutions to provide players with secure, flexible payment options. The result
delivers benefits to all types of gambling establishments including brick and mortar casinos, Native American
operators, and online gaming/gambling sites.
In this paper, we’ll discuss the cycle of player engagement and how a consolidated payment solution can
provide a safe payment environment, superior player experience, and more opportunities to enhance your
brand, increase revenue, and grow loyalty.
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2
Winning Payment Strategies to Keep Players Coming Back
A First Data White Paper
Cycle of player engagement
As the gambling and gaming industry grows and evolves,
so does the appetite of players. And, they are as vast and
unique as the different types of gambling available today.
Players want a variety of payment options including debit,
credit, check, mobile, loyalty, and prepaid—plus the ability
to easily add funds and manage their accounts.
To accommodate most players, operators must first
analyze all gaming/gambling laws and regulations, and
identify the safest and most secure method to deliver the
best service. Operators must choose a comprehensive
solution that meets three criteria:
1.Provides a credible platform linking merchants and
issuers.
2.Eliminates the complexity of dealing with multiple
providers.
3.Offers a broad range of easy-to-use payment
options for operators and players alike.
Making it easy for players:
Pay in, play, Pay out
A virtual prepaid card account offers convenience and
security to players with a pay in, play, pay out model. Pay
in and pay out can be made with a prepaid card, credit
card, ACH, or check. With pre-qualification and minimal
interruptions for players, the experience becomes more
immediate and entertaining.
Beth loves the experience she has when she visits the
casino, and now she can enjoy playing some of the
same games from the comfort of home. Operators can
be creative with incentives and other offers to attract
players to both the physical property and online using
one loyalty program.
Beth’s online experience is now enhanced because the
game provider has made it easy for her to pay and play
using a virtual prepaid card. Here’s how it works:
Beth registers by entering her data into a secure virtual prepaid card
account, which includes name, address, date of birth, and social security
number.
She instantly receives notice that she is approved and is asked how she
would like to load her
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funds. She can choose bank account, credit card,
or debit card.
Beth gets confirmation that her card account is loaded and begins
to play.
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Winning Payment Strategies to Keep Players Coming Back
Easy to pay, easy to play
Pay-in pay-out options with a single
comprehensive solution make it easy
for responsible players to add funds using:
• Prepaid cards
• Credit cards
• ACH processing
• Mobile payments
• Checks
And, these options make it easy to play at a variety
of gaming/gambling establishments including:
• Land-based casinos
• Native American operators
• Race tracks
• Online gaming
• Online lottery
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A First Data White Paper
Consolidated payments:
A win-win for operators
Casino operators can improve overall
management by implementing one consolidated
payment solution. It not only eliminates the added
complexity of dealing with multiple providers, it
also offers a broad range of easy-to-use payment
options. With the ability to deliver validated funds
to players quickly and reliably, gaming/gambling
establishments can build player satisfaction and
loyalty through innovative programs beyond
traditional payment processing and acceptance.
Casino operators have a real opportunity to link
loyalty and VIP programs to payments and can
offer the ultimate personalized player experience.
Providing a secure payment environment for
players and protecting against fraud are also of
paramount importance. Using a consolidated
payment solution with advanced analytics allows
the casino to know who their customers are and
track their behavior. With a deeper understanding
of each player, operators are able to minimize risk
and fraud while increasing player loyalty.
©2014 First Data Corporation. All rights reserved.
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Winning Payment Strategies to Keep Players Coming Back
Combat payment fraud and
provide a secure environment
for your VIPs
A First Data White Paper
Here are some other best practices leading
operators are leveraging to secure their
players’ payments:
Payment data is the most sought after data in
the world. Sixty percent of organizations were
exposed to actual or attempted payments fraud
in 2013, according to a recent survey.1 It’s critical
to take data exposure issues seriously or risk data
breaches that could critically damage your brand.
Payment fraud is one of the biggest concerns for
online operators—but all businesses should take
preventative steps.
• B
ig data analytics. For example, First Data’s
TeleCheck® solutions have amassed data
on 99 percent of U.S. check writers over the
past 50 years by providing industry leading
check account processing and risk analytics to
thousands of companies. This data is leveraged
by operators to provide immediate funds to
players while minimizing risk and fraud through
TeleCheck ACH Warranty.
The first thing operators can do is to increase
awareness of cyber fraud and data privacy issues.
There are many different types of fraud, so it’s
important to look for a solution that has integrated
security features now and is committed to building
new tools to combat future threats.
• T
eleCheck ACH Warranty converts a paper
check into an electronic transaction at the point
of sale. The Automated Clearing House (ACH)
network is used to process the transaction and
fund an account generally within two business
days, or if a check is returned, TeleCheck
manages the entire collections process for you.
These database and background checks on
credit can be done quickly and accurately.
Operators can stay a step ahead of fraudsters
with solutions that protect against password
cracking tools. Leading payment providers
utilize innovative security technology, including
encryption, tokenization, and one-time password
authentication. Here’s how they work together:
• E
ncryption – protects data in use and
in motion, from the moment the card is
used until it reaches a secure processor.
Encryption effectively safeguards data from
eavesdroppers as transactions are authorized.
• T
okenization – protects data at rest.
Tokenization increases security for merchants
by replacing cardholder data with anonymous
tokens, making it impossible to steal card data
from merchant servers or POS system; it also
reduces the cost and complexity of compliance.
1
• P
layer loyalty programs. These programs offer
incentives to VIP players to earn rewards by
playing more often or visiting other locations
within the brand or village. Using payment
systems, operators enable players with mobile
wallet functionality, which uses Near Field
Communication (NFC) chips inside mobile
smart phones and tablets, to transmit payment
information. When a customer is ready to pay,
they simply open an app on their device. This
can enhance player engagement with the
ability to easily store and access loyalty cards
and reward accounts in the app. Plus, operators
learn more about each player as they pay,
which can help reduce fraud and increase
loyalty by offering them a more personalized
experience based on their activity.
2014 AFP Payments Fraud and Control Survey, http://www.afponline.org/PressReleases.aspx?id=10737477563
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5
Winning Payment Strategies to Keep Players Coming Back
A First Data White Paper
What defines a village?
Every property is unique, but generally, the casino and additional
businesses within the property are considered part of the village
such as spas, golf courses, restaurants, retail shops, entertainment
venues and hotels. Merchants surrounding the casino property,
including gas stations and convenience stores, might also be included.
Here are some technologies that some forward-thinking operators are
implementing to maximize player experience and security throughout
their villages:
Mobile geo-location
• M
obile geo-location. This technology can identify the exact
location of a player. It provides proof of compliance with state
regulations that permit online play only in legal gambling
jurisdictions. Geo-location helps make a difference in security and
compliance for transactions.
• ApplePayTM. For mobile payments, Apple Pay ensures a secure
iPhone transaction. It provides additional security because it
replaces card numbers with secure tokens. Available in the new
iPhone 6, iPhone 6 Plus and with iOS 8 and the Apple Watch,
Apple Pay uses tokens to initiate transactions, eliminating the
storage and use of card numbers within the transaction flow.
Entertainment Venues and Hotel
Merchants surrounding
Casino Property
Spas, Golf Courses, Restaurants, Retail Shops
Here’s how it works:
1.Players download Apple Pay from iTunes. When setting up Apple Pay, the players
are required to enter their card number and CVV code to set up payment information.
2.Apple sends the request to the token service provider, the card company associated with
that account.
3.The card network requests validation for the token from an issuing processor, who provides a random
sequence token to Apple.
4.This token is encrypted and securely stored in the secure element (SE) on the device.
5. This token is also restricted to that device and cannot be transferred to another device.
Biometric identification on the device is required for initiating the transaction and further secures against the
possibility of fraudulent transactions using stole devices.
• P
ayment habits. Operators and service providers have little choice to collect personal data. Bu,t players can get
upset when asked to enter their information multiple times. By designing user experiences that reward the player
for signing up and securely store data to prevent tedious re-entry, solution providers can help form new payment
habits that offer better data protection.
In order to meet many regulatory compliance requirements and thwart fraudsters, operator and payment service
provider platforms should validate player and payment information and include multiple security controls to ensure a
safer environment.
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Winning Payment Strategies to Keep Players Coming Back
More qualified
players – less risk
To help mitigate risk and qualify more players,
operators should leverage data to determine the
level of pay-in/pay-out for their customers. In an
ideal scenario, operators can determine the ability
of a player to pay and fund their account by using
payment information. They can view the ability to
pay in through a funding, or checking account and
pay out based on past account behavior.
As previously noted, First Data offers solutions that
can provide operators with approval indicators or
scores that show a player’s propensity to overdraw
an account, fall delinquent, or miss payments. For
operators, this provides a level of confidence that
a player bank account really exists. These scoring
solutions utilize unique, original source data and
help improve risk management options.
First Data is able to provide this level of service
by relying on its extensive database of 382,000
subscribing locations, 1.75MM daily database
updates, 875MM known checkwriter identifications
and real-time scoring and statistical modeling,
which is customizable at the operator level.
Operators who utilize scoring systems, and
leverage big data to better manage approvals and
declines, may realize improvement in revenue by
offering qualified players more payment options to
pay in and pay out successfully.
A First Data White Paper
Building loyalty:
Keeping players on your
property using the village concept
With so many gaming/gambling options available,
operators are looking to increase market share
by keeping valuable players on property and
encouraging them to spend money across the brand.
For example, land-based casinos and Native American
reservations also have associated hotels, restaurants,
and other retail outlets across their property and many
are entering the online space as well. To keep players
coming back and spending money across their brand,
they ensure their customers have a unified experience
across the entire property.
Connect, personalize,
and keep players coming back
with beacon technology
Shape your players’ experiences from the beginning.
New beacon technology is a key enabler to the
next-generation gaming experience. You can
provide differentiated offers to your players
such as added perks, exclusive offers, and extra
personalized service. You can even extend the
application to include payment capabilities with a
secure, closed-loop platform.
Here’s how it works:
• Set up one or more beacons throughout
your casino or property. Beacons are simple
broadcast devices that can communicate with
your customers’ Apple iOS or Google Android
mobile device.
• Ask your player to download the beacon app
and turn on Bluetooth and location services.
• Every time a beacon picks up a player’s
signal, it will recognize the individual and send
personalized offers such as virtual
chips for online play, restaurant coupons,
and more.
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Winning Payment Strategies to Keep Players Coming Back
Capturing and storing personal data the first time
someone plays a game is a good start to building
loyalty. Finding the right balance between speed and
safety is even more important. To meet your goals
and be successful, it’s also vital to incentivize your
players to earn rewards and visit physical gaming/
gambling locations. Integrating loyalty programs with
your payment solution can help enhance your brand
and reputation.
A First Data White Paper
online services. Players can spend directly from player
cards and operators can reward players by loading
promotions onto those cards.
To deliver the ultimate gaming experience,
your payment solution should include:
• Immediate play with instant access to funding to
qualified players.
• Q
uick winnings collection through open loop or
closed loop prepaid cards, ACH banking deposit,
or paper check.
• Risk-free acceptance.
• C
ontinuous play by linking loyalty programs to
payments through secure mobile apps or mobile
wallet solutions.
• T
ools to help you better know your players and
deliver personalized offers.
• Security features that protect against fraud.
Players want freedom and flexibility. When you’re
able to efficiently deliver this to them, it’s a win-win.
Your players’ experience is fluid and entertaining and
you’re able to build loyalty for your brand.
Native American village and the casino loyalty system
Many Native American casinos are also looking for
new ways to keep players engaged both in the
casino and in the surrounding community. The village
concept refers to the ability to pay with the casino
loyalty program at establishments throughout the
community. Consolidated payment systems enable
Native American casinos to stay top of wallet for all
purchases on property or throughout designated
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Connect, personalize, and keep players coming back
Consider Karen and Kevin. Karen is 30 years old and a
first time visitor to the casino. She makes an online hotel
reservation for a weekend trip with her husband Kevin.
During the reservation process, she is prompted to
auto-enroll in the player’s club and download the loyalty
mobile app in advance.
Progressive loyalty programs, which embrace beacon
technology, are a key enabler to the next-generation
gaming experience. With advanced programs, you
can provide differentiated and targeted offers to your
players such as added perks, exclusive offers, and extra
personalized service. Here’s how it works:
• Install one or more beacons throughout your casino
or property. Beacons are simple broadcast devices
that can communicate with your customers’ Apple
iOS or Google Android mobile device.
• D
uring the reservation process or at check-in, ask
your player to download the loyalty app and turn on
Bluetooth and location services on their mobile.
• E
very time a beacon picks up a player’s signal, it will
recognize the individual and if appropriate, send
personalized offers such as virtual chips for online
play, restaurant coupons, and more.
©2014 First Data Corporation. All rights reserved.
8
Winning Payment Strategies to Keep Players Coming Back
In addition to playing slots and table games, Karen
and Kevin dine in one of the property’s fine dining
establishments during their casino stay. Advanced
POS solutions provide a pleasant dining experience
with apps that alert Karen and Kevin when their table
is ready at the restaurant; allowing Karen more playing
time at the slots.
Additionally, Kevin takes in a round of golf, while
Karen treats herself to a spa day. Innovative and
secure mobile payment solutions, like ApplePay, allow
Kevin and Karen to easily pay for these experiences
while on property. Meanwhile, Kevin and Karen are
earning loyalty points for their purchases and they
can be redeemed for purchases at merchants within
the village. Beacon technology keeps track of the
couple’s location and, when appropriate, provides
them with relevant offers for other merchants within
the village.
Casino operators can use advanced analytics to
better understand business traffic throughout the
village. And, they can use benchmarking tools to drive
increased business during non-peak times through
more informed and targeted offers. For example, a
casino can send an email or text notification to Karen
after her trip to let her know what she has earned.
Those dollars can be loaded into a digital casino gift
card to spend during a future visit. The casino can also
offer an early bird discount for an upcoming concert
or special event at the casino.
Many player engagement options exist for Native
American casinos and operators can choose one that
best meets its needs. The main goal is to stay top
of wallet—and top of mind—with more consistent
brand exposure for all purchases on property or
throughout designated online property. Here are
some effective ways some operators are maximizing
player engagement:
• C
ombine player cards with prepaid cards for to
drive loyalty and payment options.
• E
nhance the customer experience with mobile
apps and wallets.
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A First Data White Paper
• P
rovide numerous payment options, such as ACH,
open loop and close loop prepaid cards to fit the
customer’s preference.
• K
eep customer engaged before, during and after the
visit.
• S
end offers and promotions for Village businesses
directly to the player card and/or mobile app, utilizing
beacons.
• A
llow loyalty points to be earned and redeemed with
merchants throughout the village.
Many payment options exist for Native American casinos
to meet their unique needs and requirements. Examples
include restricted open loop, closed loop, and reloadable
prepaid cards. These prepaid cards are accepted in
selected networks with variable and multiple load sources.
Using these options, the Native American operators can:
• S
tay top of wallet with more consistent brand exposure
for all purchases on property or on designated online
property.
• C
ombine player cards with prepaid cards for to drive
loyalty and payment options.
• E
nhance the customer experience with mobile apps
and wallets.
• P
rovide numerous payment options to fit the
customer’s preference.
• K
eep customer engaged before, during and after
the visit.
• S
end offers and promotions for village businesses
directly to the player card and/or mobile app, utilizing
beacons.
• Increase payment acceptance.
• S
et spending limits up front for responsible gaming/
gambling.
• A
llow loyalty points to be redeemed for purchases
within local businesses.
©2014 First Data Corporation. All rights reserved.
9
Winning Payment Strategies to Keep Players Coming Back
A First Data White Paper
Summary
Payment flexibility and loyalty programs offer new opportunities for operators to win more business and increase
market share. With today’s tools, the added complexity of dealing with multiple providers can be eliminated—
helping to improve overall management. Consolidated payment solutions offer a broad range of easy-to-use
payment options for gaming operators and players alike. Analytics makes the process smoother and enables
operators to provide a player experience that is more immediate, entertaining, and secure.
Providing players with a seamless experience that engages them in new and exciting ways is absolutely critical to
keeping them coming back for more. To be successful, here are some best practices to consider implementing as
soon as possible:
• Offer easy pay in/pay out options with prepaid cards, ACH, and other flexible payment methods.
• C
reate a secure environment for you and your players by using solutions that have best-in-class security and
fraud prevention features and risk-free payment acceptance.
• Increase player engagement by capturing data at registration and expand knowledge of player behavior.
• B
oost traffic at merchant locations throughout your village using beacon technology to send personalized
offers and encourage use of your loyalty program.
Today’s gambling/gaming solutions have all the capabilities you need to support your efforts now and into the
future. Use them to set the stakes for your players and drive success. Prepaid solutions can help you take cash off
the floor and enable players to play using prepaid cards at the slots and at the table. This can help you reduce
the cost and eliminate the risk of handling cash while giving your players more options to pay and play.
Whether you’re looking to update your existing system or enter a new market space, now is the time to consider
raising the stakes and working with a partner who truly understands your payment and business needs.
For more information, contact your First Data Representative or visit firstdata.com
This White Paper is for informational purposes only. FIRST DATA MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS WHITE PAPER. First Data cannot be
responsible for errors in typography or photography.
The PayLucky Prepaid MasterCard® can be used at any merchant that accepts MasterCard. To use the Card for online gambling, players must be physically
located in the states where online gambling is legal. Apple is a registered trademark and iPhone 6 is a trademark of Apple.
Information in this document is subject to change without notice.
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Other trademarks and trade names may be used in this document to refer to either the entities claiming the marks and names or their products.
First Data disclaims proprietary interest in the marks and names of others.