Which Payment Gateways to Use for Online Competition Sites
If you’re starting an online competition business, you probably know how crucial it is to collect payments securely and reliably. But here’s the reality – most mainstream payment providers won’t support competition sites.
As specialists in launching and scaling competition businesses, we’ve seen countless entrepreneurs get their accounts frozen by platforms like PayPal or Stripe. Why? Because these providers label competition websites as “high-risk.”
In this guide, we’ll break down:
- What a payment gateway does and why it matters
- Why most competition sites are seen as high-risk
- A vetted list of trusted payment gateway providers
- Must-ask vetting questions to avoid rejection
- Compliance steps required to get approved
- How Design Hero helps make the entire setup stress-free
This advice is based on years of first-hand experience helping entrepreneurs launch successful competition websites that pass compliance and operate without payment disruptions.
What Is a Payment Gateway – and Why It Matters
A payment gateway allows your website to accept card payments, Apple Pay, Google Pay, and more. It acts as a bridge between your customer and your bank, processing the payment securely and transferring the funds to your business account.
For standard eCommerce sites, options like Stripe and PayPal are common. However, these providers are not viable for competition websites, especially if you’re just starting out.
Because competition businesses deal with prize entries and perceived risk, many popular gateways instantly decline applications – regardless of how legitimate your business is.
Why Competition Sites Are Labeled as High-Risk
Payment processors often categorize competition sites under the same umbrella as gambling or sweepstakes. This triggers stricter scrutiny, as regulators and insurers associate these models with higher fraud or chargeback risks.
Even if your competition model is fully skill-based and legal, you will likely be flagged. Here’s what this means for you:
- You may face higher setup fees and rolling reserves
- Applications may be delayed or denied without clear reasons
- You’ll need more documentation to prove compliance
Understanding this risk category is critical before you approach any provider. Applying blindly can waste weeks.
Payment Gateway Providers for Competition Sites
Here are payment processors that we’ve personally used or vetted for our clients in the competition space:
- NoChex – A UK-based provider that understands high-risk industries and regularly supports new competition businesses.
- G2Pay – Known for their flexibility with unique eCommerce setups and high-risk profiles.
- DNA Payments – Offers tailored packages and responsive support teams familiar with competition models.
- Acquired – Focuses on merchant compliance and works closely with high-risk clients to build long-term solutions.
- Axcess – Integrates well with WordPress and WooCommerce. Frequently chosen for its ease of integration and setup support.
💡 At Design Hero, we have working relationships with these providers and can refer you directly to the right one, for a faster sign up service. based on your website platform, audience, and revenue model.
If you’d like a referral, I’ll need to have a brief chat with you first to make sure you’re a good fit.
Just book a call with me, I can also give you further guidance on starting your competition business
Payment Gateway Costs for Competition Businesses
While fees vary slightly between providers, here’s what most competition business owners can expect:
- Transaction Fees: Typically range from 1.5% to 3.5%
- Setup Fees: Some providers charge a one-time onboarding fee from £100 to £500+
- Rolling Reserves: A percentage of your revenue (often 5% to 10%) is held temporarily
- Monthly Support Fees: May apply depending on your account volume and risk profile
⚠️ Tip: If your business has a strong launch plan or projected turnover, you may be able to negotiate lower fees.
Key Questions to Ask a Payment Gateway Provider
Not all payment processors are transparent – especially when it comes to supporting competition sites. Here’s a proven vetting checklist we recommend to every client:
- Do you support startup competition businesses with no previous turnover?
- Are you the end provider, or just a broker or agent?
- What transaction fees and setup costs apply?
- Do you support payment methods like Visa, Mastercard, Apple Pay, and Google Pay?
- Do you offer a plugin for WooCommerce or WordPress?
- Is the checkout embedded or redirected externally?
- Can you provide screenshots or a demo of the checkout?
- Do you support onsite credits or rewards systems?
- Will you provide developer integration support or documentation?
By asking these upfront, you’ll avoid delays and last-minute surprises.
Compliance Documents You’ll Need for Approval
Each provider may request different documentation, but in most cases, you’ll need:
- Government-issued photo ID
- Registered company details (Companies House registration if UK-based)
- Registered business address
- Proof of bank account ownership
- Evidence of ownership or purchase of the first prize
- Clear Terms and Conditions and Privacy Policy
- Website contact information (phone number and email)
Website Compliance Checklist for Payment Approval
Payment gateways are cautious. They will inspect your website for trust and legality before granting approval.
Here’s the checklist we follow for every Design Hero competition site build:
✅ Free postal entry option (required in many jurisdictions)
✅ Clearly visible Terms, Privacy, and Cookie Policies
✅ Physical company address and contact info in the footer
✅ No placeholder text or fake testimonials
✅ Verified prize evidence (V5C and MOT for vehicles)
✅ Accurate stats – hide fact boxes if not available
❌ Never mention “raffles” or “lotteries”
❌ Do not imply charity involvement without verification
📌 Compliance is essential – and getting it wrong could result in your site being blacklisted by providers.
Why Work With Design Hero
We’ve helped dozens of entrepreneurs launch successful competition websites with compliant designs and trusted payment setups.
When you work with us, you get:
- Direct referrals to trusted payment gateway providers
- A fully compliant website that speeds up application approvals
- Ready-made terms and privacy policy templates
- Developer support to integrate WooCommerce and Apple Pay
- Guidance on avoiding compliance red flags
🎯 You focus on growing your competition business – we handle the tech, compliance, and connections.
👉 Check out our competition website design services
FAQs about high risk payment gateway providers for online competition businesses…
Can I use Stripe or PayPal?
No – these providers usually block competition businesses, even if legal and skill-based.
Which payment provider should I choose?
Start with NoChex, G2Pay, DNA Payments, Acquired, or Axcess. We can advise based on your platform and location.
Do I need to be a registered business?
Yes – your competition business must be legally registered with valid ID, address, and prize documentation in order to get approved for a payment gateway.
Got more questions about starting a competition business?
Check out my complete guide to starting a competition business successfully
