A Comprehensive Guide to Choosing a Payment Provider for UK Competition & Raffle Businesses

Operating a competition, raffle, or prize-based business in the UK is not inherently risky — but it is heavily scrutinised.
And nowhere is this more misunderstood than in banking and payment processing.

Many operators only discover this after onboarding fails, accounts are frozen, or services are terminated mid-scale.

This guide exists to prevent that.

Below is a clear, practical framework to help founders and operators make defensible, sustainable payment decisions — before mistakes become costly.

Why Competition & Raffle Businesses Are Classified as High-Risk

Banks and payment processors don’t assess risk emotionally.
They assess it structurally.

Their models focus on:

• Chargeback probability
• Regulatory exposure
• Reputational risk
• Consumer protection obligations

Competition and raffle businesses trigger multiple flags because they combine:

• Upfront payments with delayed outcomes
• Customer disputes tied to results or fairness
• Overlap with gambling and prize legislation
• Ongoing regulator and media scrutiny

Key distinction:
Being high-risk does not mean illegal.
It means more regulated, more monitored, and more expensive to service.

Understanding this difference is critical.

Why Competition & Raffle Businesses Are Classified as High-Risk

Banks and payment processors don’t assess risk emotionally.
They assess it structurally.

Their models focus on:

• Chargeback probability
• Regulatory exposure
• Reputational risk
• Consumer protection obligations

Competition and raffle businesses trigger multiple flags because they combine:

• Upfront payments with delayed outcomes
• Customer disputes tied to results or fairness
• Overlap with gambling and prize legislation
• Ongoing regulator and media scrutiny

Key distinction:
Being high-risk does not mean illegal.
It means more regulated, more monitored, and more expensive to service.

Understanding this difference is critical.

UK Business Account Providers That Work With the Sector

The following providers are known to engage with competition, raffle, or gambling-adjacent models — subject to due diligence.

Banking & Business Account Providers

• Zempler Bank
  FCA-authorised. Has accepted certain competition and gambling-adjacent models.

• Clique Payments
  FinTech specialising in high-risk sectors. Offers combined banking and payments.

• RiskLine
  Focuses on high-risk merchant banking and acquiring relationships.

• Extra Direct
  Markets guaranteed acceptance for gambling businesses (conditions apply).

A Note on EMIs

Electronic Money Institutions can be more flexible than high-street banks, but policies vary. Always obtain written confirmation.

⚠️ Traditional high-street banks (Barclays, HSBC, etc.)
Often unsuitable. Accounts are frequently closed once activity is identified.

UK Business Account Providers That Work With the Sector

The following providers are known to engage with competition, raffle, or gambling-adjacent models — subject to due diligence.

Banking & Business Account Providers

• Zempler Bank
  FCA-authorised. Has accepted certain competition and gambling-adjacent models.

• Clique Payments
  FinTech specialising in high-risk sectors. Offers combined banking and payments.

• RiskLine
  Focuses on high-risk merchant banking and acquiring relationships.

• Extra Direct
  Markets guaranteed acceptance for gambling businesses (conditions apply).

A Note on EMIs

Electronic Money Institutions can be more flexible than high-street banks, but policies vary. Always obtain written confirmation.

⚠️ Traditional high-street banks (Barclays, HSBC, etc.)
Often unsuitable. Accounts are frequently closed once activity is identified.

Payment Processors Built for High-Risk Models

Processing is where most failures occur — not banking.

These providers specialise in regulated, high-risk acquiring:

• Corepay – Strong in gambling, crypto, and regulated sectors
• Axcess Merchant Services – UK-focused, casinos, lotteries, sportsbooks
• Radiant Pay – UK & EU gambling specialist
• Merchant Connect – Hands-on onboarding for high-risk merchants
• PaymentCloud – Large international processor with UK reach
• Cashflows – UK gateway and acquirer supporting some gambling models
• PXP Financial – Enterprise-grade, gambling verticals
• Nuvei (formerly SafeCharge) – One of the strongest global gambling processors

Each has different tolerances, pricing models, and risk appetites.

There is no universal “best” — only best-fit.

Due Diligence Is Not Optional

Before approaching any provider, be prepared to supply:

Regulatory & Legal

• Gambling Commission licence or documented exemption
• Clear explanation of skill vs chance mechanics
• Responsible gambling policies

Commercial & Technical

• Forecast monthly volumes
• Average ticket value
• Website terms, privacy, and refunds policies
• Platform compatibility (WooCommerce, raffle software, custom builds)

Financial Reality

• Higher fees than standard ecommerce
• Rolling reserves (typically 5–10% for 3–6 months)
• Longer contracts and stricter termination clauses

Red flag:
Any provider promising “no questions asked” onboarding.

If they don’t assess your risk — they are your risk.

Due Diligence Is Not Optional

Before approaching any provider, be prepared to supply:

Regulatory & Legal

• Gambling Commission licence or documented exemption
• Clear explanation of skill vs chance mechanics
• Responsible gambling policies

Commercial & Technical

• Forecast monthly volumes
• Average ticket value
• Website terms, privacy, and refunds policies
• Platform compatibility (WooCommerce, raffle software, custom builds)

Financial Reality

• Higher fees than standard ecommerce
• Rolling reserves (typically 5–10% for 3–6 months)
• Longer contracts and stricter termination clauses

Red flag:
Any provider promising “no questions asked” onboarding.

If they don’t assess your risk — they are your risk.

Alternative Payment Methods (APMs)

Flexibility improves resilience.

Ask providers whether they support:

• Debit and credit cards
• Trustly / Open Banking
• Skrill / Neteller
• Other gaming-friendly APMs

Not all processors can offer these.
Clarify early — not after integration.

A Proven, Low-Risk Setup Pattern

A commonly observed and effective structure:

• Business account: Zempler-type provider
• Payment processing: Corepay, Radiant Pay, or Nuvei
• Clear separation: Banking ≠ acquiring

This structure:

• Reduces single-point failure
• Improves compliance resilience
• Makes scaling less fragile

Final Perspective

Choosing a payment provider in this industry is not a cost decision.
It’s a survival decision.

The right partner:

• Understands regulation
• Underwrites transparently
• Communicates clearly
• Scales with your operation

The wrong one can freeze funds, terminate services, or create regulatory exposure overnight.

Important Disclaimer

This guide is provided for informational purposes only and does not constitute legal, financial, or professional advice.

You must conduct your own due diligence and ensure all providers are appropriately authorised by the FCA or PSR where applicable. Conditions change frequently.

Neither the author nor Zylaris Consulting accepts liability for decisions made based on this guide.

Need clarity before choosing a payment provider?

Zylaris Consulting helps competition and raffle businesses navigate banking, payment processing, and regulatory risk — before costly mistakes are made.

👉 Book a confidential advisory call

We’ll review your business model, risk profile, and growth plans — and help you choose providers that fit your operation, not the other way around.