winning payment strategies to keep players coming back

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.

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A First Data White Paper Winning Payment Strategies to Keep Players Coming Back

IntroductionRight 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.



Cycle of player engagementAs 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 outA 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 funds. She can choose bank account, credit card, or debit card.

Beth gets confirmation that her card account is loaded and begins to play.

She wins on her first hand and sees that her card account balance is credited.



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.

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:

• Prepaidcards

• Creditcards

• ACHprocessing

• Mobilepayments

• Checks

And, these options make it easy to play at a variety of gaming/gambling establishments including:

• Land-basedcasinos

• NativeAmericanoperators

• Racetracks

• Onlinegaming

• Onlinelottery



Combat payment fraud and provide a secure environment for your VIPs 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.

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.

Operators can stay a step ahead of fraudsters with solutions that protect against password crackingtools.Leadingpaymentprovidersutilize innovative security technology, including encryption, tokenization, and one-time password authentication. Here’s how they work together:

• Encryption–protectsdatainuseandin motion, from the moment the card is used until it reaches a secure processor. Encryption effectively safeguards data from eavesdroppers as transactions are authorized.

• Tokenization–protectsdataatrest.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.

Here are some other best practices leading operators are leveraging to secure their players’ payments:

• Big 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.

• TeleCheck 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.

• Player 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.

1 2014 AFP Payments Fraud and Control Survey, http://www.afponline.org/PressReleases.aspx?id=10737477563



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. 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.

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.

• Payment 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.

Mobile geo-location

Spas, Golf Courses, Restaurants, Retail Shops

Entertainment Venues and Hotel

Merchants surrounding Casino Property



More qualified players–lessriskTo 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.

Building loyalty: Keeping players on your property using the village conceptWith 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: • Setuponeormorebeaconsthroughout

your casino or property. Beacons are simple broadcast devices that can communicate with your customers’ Apple iOS or Google Android mobile device.

• Askyourplayertodownloadthebeaconappand turn on Bluetooth and location services.

• Everytimeabeaconpicksupaplayer’ssignal, it will recognize the individual and send personalized offers such as virtual chips for online play, restaurant coupons, and more.



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.

To deliver the ultimate gaming experience, your payment solution should include: • Immediateplaywithinstantaccesstofundingto

qualified players.

• Quickwinningscollectionthroughopenlooporclosed loop prepaid cards, ACH banking deposit, or paper check.

• Risk-freeacceptance.

• Continuousplaybylinkingloyaltyprogramstopayments through secure mobile apps or mobile wallet solutions.

• Toolstohelpyoubetterknowyourplayersanddeliver personalized offers.

• Securityfeaturesthatprotectagainstfraud.

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

online services. Players can spend directly from player cards and operators can reward players by loading promotions onto those cards.

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:

• Installoneormorebeaconsthroughoutyourcasinoor property. Beacons are simple broadcast devices that can communicate with your customers’ Apple iOS or Google Android mobile device.

• Duringthereservationprocessoratcheck-in,askyour player to download the loyalty app and turn on Bluetooth and location services on their mobile.

• Everytimeabeaconpicksupaplayer’ssignal,itwillrecognize the individual and if appropriate, send personalized offers such as virtual chips for online play, restaurant coupons, and more.



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:

• Combineplayercardswithprepaidcardsfortodrive loyalty and payment options.

• Enhancethecustomerexperiencewithmobileapps and wallets.

• Providenumerouspaymentoptions,suchasACH,open loop and close loop prepaid cards to fit the customer’s preference.

• Keepcustomerengagedbefore,duringandafterthevisit.

• SendoffersandpromotionsforVillagebusinessesdirectly to the player card and/or mobile app, utilizing beacons.

• Allowloyaltypointstobeearnedandredeemedwithmerchants 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:

• Staytopofwalletwithmoreconsistentbrandexposurefor all purchases on property or on designated online property.

• Combineplayercardswithprepaidcardsfortodriveloyalty and payment options.

• Enhancethecustomerexperiencewithmobileappsand wallets.

• Providenumerouspaymentoptionstofitthecustomer’s preference.

• Keepcustomerengagedbefore,duringandafter the visit.

• Sendoffersandpromotionsforvillagebusinessesdirectly to the player card and/or mobile app, utilizing beacons.

• Increasepaymentacceptance.

• Setspendinglimitsupfrontforresponsiblegaming/gambling.

• Allowloyaltypointstoberedeemedforpurchaseswithin local businesses.



SummaryPayment 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:

• Offereasypayin/payoutoptionswithprepaidcards,ACH,andotherflexiblepaymentmethods.

• Createasecureenvironmentforyouandyourplayersbyusingsolutionsthathavebest-in-classsecurityandfraud prevention features and risk-free payment acceptance.

• Increaseplayerengagementbycapturingdataatregistrationandexpandknowledgeofplayerbehavior.

• Boosttrafficatmerchantlocationsthroughoutyourvillageusingbeacontechnologytosendpersonalizedoffers 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

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ThisWhitePaperisforinformationalpurposesonly.FIRSTDATAMAKESNOWARRANTIES,EXPRESSORIMPLIED,INTHISWHITEPAPER.FirstDatacannotberesponsible for errors in typography or photography.

ThePayLuckyPrepaidMasterCard® 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.

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.

Information in this document is subject to change without notice.

winning payment strategies to keep players coming back

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