The article I have written below looks at the challenges many online operators face when handling multi-currency online transactions from a variety of geographical locations. I hope you find this article useful. Please note that this site is purely an information resource based on my own experiences. This site is neither owned, affiliated or operated by any bank, of financial services company. The artcile below are ny thoughts and do not constitute advice.
Online transactions these days are complex. Not only do they cross multiple jurisdictions, countries and currencies, but they also occur in real time. Customers expect this, and so too do most online operators. This is particularly the case in the rapidly growing iGaming markets throughout Europe, North America, Australia, and more recently Asia. New and emerging markets combined with a lack of clarity from a regulatory and legislative standpoint, make the process of handling online gambling transactions an area which continues to cause much debate and confusion.
These types of transactions need to be secure, and fraud kept to a minimum. This is particularly important in relation to transactions undertaken within the online gambling environment, where the threat of fraud and potential customer charge backs is significant when compared to other more traditional online sectors.
Given the complexity surrounding online transactions of this nature, it is hardly surprising to see that this area is now effectevly a specialist area. We don’t have the time to go into depth about this in this partisular article. However, you will find a summary of the most popular online gambling banking methods that I have come across:
Credit Cards are by far and away the most popular deposit method for players interested in playing at online casino and wagering sites, particularly in countries such as Australia, where credit card transactions with online casino sites are classified as high risk by the issuing banks, leading to failed transactions and lost revenues to the casino operator. Nevertheless, the are risks associated with credit cards transactions, partisularly in relation to transaction completion rates and charge backs.
At the time of writing POLi are a relatively new entrent into the online payment processing sector. A number of free play casino operators establish local solutions such as POLi, that not only make it possible for players to play their favourite free casino games, but also seamlessly integrate with the casino operators technology to aid the conversion of these free play players into real money players at a later date.
As far as we are aware, Neteller are a major player in the online gambling banking sector, and again at the time of writing a number of platforms accept Neteller payments. However, over the last few years one could be forgiven for assuming that Neteller appears to be withdrawing from the online casino and gambling sectors.
Certainly, Neteller’s Terms and Conditions from their Canadian website, clearly mentions unlicensed online gambling being a prohibited activity. I’m not sure where that leaves them in the regulated and licensed sectors, but fans of casino games that are based in Canada may only be able to play slots for fun if they are unable to use Neteller as a deposit method at online casinos.
ECO is fast becoming a popular eWallet solution amongst a number of online casino and gambling operators around the globe.
There are a large number of banking solutions available to online gambling operators, yet the suitability of these solutions is heavily dependent on a number of factors, including the size of the casino operator, the geographical region that they operate in, the volume and currency of the transactions. The payment processing sector within the online gambling sector is a complex one. As more and more countries look to regulate these sectors it can only be good news for both payment processors and customers. A regulated market should hopefully result in a more clear and coherent rules, benefiting customers and hopefully ensuring that increased competition will lead to a reduction in transaction costs.
I hope you found the above article uselful. If you would like any further information or have any questions then please do not hesitate to get in touch!