One of the biggest hurdles both players and casinos face in the new world of online gambling, is how players get their money into their casino accounts, and how they collect their winnings.
Virtually all online casinos handle player accounts in a similar way. Players establish an account with the casino either using the web, or through the casino software. That payment is then credited to their casino account in the form of play credits, tokens or just an account balance. At this point, players may make wagers from that casino account. There are literally hundreds of different mechanisms for this procedure, but nearly all operate on the same principle.
The problem is, how can the casino make it easy for players to make deposits and withdrawls? At first you would think it is an easy question, but when banks and MasterCard/Visa get involved, things get complicated.
The Problems
There are so many difficulties in getting good credit card processing set-up, ranging from fees imposed by MasterCard and Visa, to the banks withholding funds from the casinos, to transactions that get lost by the processor. Sometimes it seems amazing that anyone can play it all.
Under the processing rules for MasterCard/Visa, gambling sites are considered high-risk merchants. As such, credit card issuers are not required to process the transactions. In other words, you might decide to give online gambling a try, but the bank that issued you your credit card decided it does not want to process funds for gambling merchants. You might be out of luck.
One thing that you can do is let your bank know that you want to use your credit card for online gambling. Although they may not be able to reverse their policy just for you, when enough people complain, something may happen. You can be assured that the online casinos are complaining to them as well. And, there is a lot of money at stake here, so I am certain the last word has not yet been spoken on this topic.
Another problem is that fees that are imposed by the banks on online casinos. The major credit card processors charge between 4% and 6% of every deposit you make. While the casinos don't pass these fees on to their players, these high costs severely eat into their profits, and limit their abilities to offer better bonuses and promotions to their players.
Some Solutions
In an effort to get around these problems with MasterCard/Visa, online casinos are now beginning to use alternative methods for players to deposit. These methods include wire transfers, Western Union, NetTeller, PayPal, ACH Transactions and ATM cards.
Wire transfers and Western Union transfers are old forms of sending money that online casino adopted years ago. It is only recently that they are begining to emphasize them as mainstream methods of funding players' accounts.
NetTeller is an Internet payment company that lets you set up an E-cash account that is separate from any casino account. Once you deposit money to your NetTeller account, you can transfer the funds to any casino that accepts NetTeller as a form of payment. You can also receive it faster than through your NetTeller account, so you often receive it faster than through other mechanisms. For an example of a casino that accepts NetTeller, check out http://www.thecasinoonline.com/.
PayPal has quickly become one of the leading forms of payment for eBay auctions. It is an e-mail based payment system that allows you to send a payment to anyone in the world that has an email address (which is becoming less and less of a restriction!) All you need to do is sign up for a PayPal account at PayPal.com, and you will be able to transfer money to any casino that accepts PayPal. For an example of a casino that accepts PayPal, check out http://www.illustratedcasino.com/.
ACH Transactions (short for Automated Clearing House), or electronic checks, allow players to write a "virtual check" from their checking account directly to the casino, without actually writing or sending it. For ACH to work properly, the casino must get written authorization from the player with banking information in order to set up the account. Once that is done, players may transfer money back and forth quickly and easily between their casino accounts. For an example of a casino that accepts ACH transactions, check out http://www.intercasino.com/.
ATM transactions will allow players to use their bank issued ATM cards in the online casino. These cards offer better security than do MasterCard and Visa, due to their PIN's, and also have lower processing costs for the casino. You can expect many casinos to begin offering ATM deposits and cash outs as soon as the technology and infrastructure are completed (maybe even by the time you read this).
Payment processing mechanisms are continuing to evolve. Over the coming months and years, there will be new and innovative ways to fund your casino account, and to process cash outs more efficiently. Until then be patient!
Author: Steve "Eagle Eye" Walker is a consultant to the online gaming industry. He has been involved with online gaming since its start and has consulted on software, security, technology and operations for numerous online casinos. He can be reached at http://casinoconsultant@yahoo.com/.
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