Taking payments on a competition website

Last reviewed 29 October 2026 · Competition Brands guides

Payments are where many new comp sites get stuck. Card schemes, acquirers and payment platforms treat paid-entry prize promotions as higher risk, and the DCMS Code adds its own limits. This guide covers only what we could check in primary sources. Where we couldn't, the answer is to check with the provider.

Mainstream payment platforms

Don't assume the provider you use for e-commerce will accept a competition business. Two examples from published policies:

Stripe. Its Prohibited and Restricted Businesses list (updated 22 September 2026) lists gambling in its prohibited section. That includes games of chance such as sweepstakes and contests with a monetary or material prize, games of skill with a monetary prize, entry fees that promise a prize, and lotteries. Charity sweepstakes and raffles for fundraising appear in the restricted section, as supported in the UK subject to approval.
PayPal. Its Acceptable Use Policy (updated 12 October 2026) lists “Gambling, Gaming, Prize Draws and Contests” among activities requiring PayPal's approval, including activities with an entry fee and a prize, games of skill and sweepstakes.

Policies change and are applied case by case, so ask the provider directly and get any approval in writing before launch.

Specialist acquirers named by platforms

The hosted platforms in our directory name the payment providers they integrate with on their own websites:

Cashflows is named by Comps.gg, Turbo IT, Basecomp, RaffleHub and RaffleX.
DNA Payments is named by Comps.gg.
Paytriot is named by RaffleHub.
Fena (pay by bank) is named by Basecomp.

In each case the platforms describe payments going to the operator's own merchant account, so you apply to the provider yourself. On costs, RaffleHub's website estimates a payment gateway account at around £600 including VAT to set up. RaffleX's website says the Cashflows account it requires has a £500 one-off fee for security checks. Fees, underwriting criteria and processing times are for the provider to confirm.

Credit cards and the DCMS Code

Clause 1.3 of the DCMS Code says operators should not accept more than £250 per player per month by credit card, and no credit card payments at all for instant win draws. That includes credit card payments made through a money service business. Your checkout needs to tell credit and debit cards apart and enforce both rules. Clause 1.4 also requires monthly spend limits across all draws, including a player-set limit of £0.

Preparing your application

Acquirers will usually want to understand your business model before approving you. Have these ready:

a live or staging website with terms, rules, privacy notice and free entry route
your legal basis (skill test and/or free entry), ideally confirmed in writing by your solicitor
age verification and player-protection features
expected volumes, average order value and prize values
company details, directors and people with significant control
your refunds, complaints and chargeback approach

We have not verified any provider's specific requirements. Ask each one for its checklist.

VAT on entries

In a written answer on 17 February 2026 (UIN 111960), the Government said HMRC's position is that prize draws offering both paid and free entry routes are not eligible for VAT exemption, and paid entries are subject to VAT at the standard rate of 20%. VAT Notice 701/29 covers betting, gaming and lotteries and how skill affects classification. The registration threshold is £90,000. VAT has a big effect on margins, so get advice from an accountant before you set ticket prices.

Refunds, chargebacks and cancelled draws

The DCMS Code (clause 2.5) says operators should not reduce a prize, change a draw date or cancel a draw because of low ticket sales. Plan your cash flow on the basis that every draw will go ahead and every prize must be awarded, even if a competition undersells. Your terms should explain when refunds are given, for example if an entry was made in error or a player was under 18. Handle disputes quickly. A high chargeback rate can put a merchant account at risk with any acquirer.

Questions to ask a payment provider

Do you accept paid-entry prize draws and competitions with a free entry route, and on what conditions?
What do you need to see before approval, and how long does underwriting take?
What are the set-up, monthly and per-transaction fees, and is there a reserve or rolling hold on funds?
Can you tell credit and debit cards apart at checkout so I can apply the DCMS credit card rules?
Which wallets and pay-by-bank options are supported?
How are refunds and chargebacks handled, and what are the fees?
Does my competition platform already integrate with you?

Keep good records

Keep records of every entry, paid and free, plus draw results and prize fulfilment. You need them to show your draws were fair (DCMS 2.2), to deal with complaints and chargebacks, and for tax.

Frequently asked questions

Can I use Stripe for a competition website?

Stripe's published list puts paid-entry contests, sweepstakes and lotteries in its prohibited section. Charity raffles for fundraising are listed as restricted. Check the current list and ask Stripe directly. Don't launch on an assumption.

Can I use PayPal?

PayPal's Acceptable Use Policy lists prize draws and contests among activities that need its approval. You would need to apply and get approval first. See the policy.

Can players pay by credit card?

Under the DCMS Code, up to £250 per player per month, and not for instant win draws. Your acquirer may set stricter limits.

Do free entries affect my payment set-up?

Free entries don't go through your checkout, but your platform must record them and put them into the same draw with an equal chance.

Sources

Sources checked 29 October 2026.

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