Setting up online payments for a prize draw business can feel overwhelming, especially when you’re faced with unfamiliar terms such as issuers, acquirers, payment gateways and merchant accounts. Many operators know they need to accept payments online but are unsure what services they actually need, what each provider does, or how everything works together. This guide breaks down the key components of online payments in simple, jargon-free language, helping you understand the role each service plays and make informed decisions when choosing payment partners for your business.
Finding the right payment provider can be difficult, especially when you’re faced with lots of different options and technical jargon. That’s why we’ve done the hard work for you. We’ve researched each provider, met with members of their team and taken the time to understand how their services support prize draw businesses. Every provider featured below is a trusted Rafflers partner and offers exclusive benefits to businesses that join through Rafflers.
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Every online payment follows the same journey. From the moment a customer clicks Pay, the payment passes through several stages before the funds are securely transferred into your business bank account.
Every prize draw operator that accepts online card payments will need these key payment services. Although different providers may offer them in different ways, they all work together to ensure customer payments are processed securely and the funds reach your business bank account.
A payment gateway is the technology that allows customers to make payments on your website. When a customer enters your prize draw and proceeds to checkout, the payment gateway provides the secure payment form where they enter their card details and complete their purchase.
Once the customer clicks "Pay", the payment gateway securely sends the payment information to the customer's bank (known as the issuer). The issuer then checks that the card is valid, confirms there are sufficient funds available and carries out security checks to help prevent fraud. Without a payment gateway, customers would have no way to enter their card details or pay for entries online.
An issuer is the bank or financial institution that provides a customer with their payment card.For example, if a customer enters your prize draw using a Barclays debit card, Barclays is the issuer.
When a customer enters their card details and clicks "Pay", the issuer checks:
Is the card genuine?
Is there enough money available?
Has the card been reported lost or stolen?
Does the transaction look suspicious?
If everything looks correct, the issuer approves the payment and the transaction can continue.Think of an issuer as a customer's bank. Their job is to decide whether a payment should be approved and allow the money to leave the customer's account.
An acquirer is the company that allows your business to accept card payments online. Without an acquirer, customers would not be able to pay for entries using Visa, Mastercard, or other card payment methods.
When a player purchases a prize draw ticket, the issuer will approve (or not) the transaction. If approved, the acquirer will receive the payment from the ticket purchase and manages the process of moving the funds from the ticket buyers bank to your business account.
Acquirers also provide the merchant account used to receive and settle card payments.
Acquirers carry out checks to assess factors such as business activity, compliance, fraud risk, and financial stability, protecting both merchants and customers.
A merchant account is a special account used to receive card payments. When a player enters your prize draw, the payment is received into the merchant account first, before being processed and transferred to your business bank account.
Most prize draw operators never need to access or manage their merchant account directly, as it is normally provided and managed by their payment provider or acquirer.
Without a merchant account, it is not possible to accept card payments online. It acts as the bridge between customer payments and your business bank account, ensuring funds are collected, processed and settled securely.
You're going to need to receive the final funds into a business bank account. This can be any high street bank or online provider After a customer enters your competition and makes a payment, the funds pass through the payment system before being transferred into your business bank account. This is the account you use to manage your business finances, pay suppliers, cover expenses and access your revenue.
