Depositing and withdrawing money to and from an online casino by using a credit card can be a convenient and compelling choice.
If you are an America-based sports bettor, though, using a credit card may not be convenient at all and may not even be possible at some online betting sites. The “Unlawful Internet Gambling Enforcement Act of 2006,” or UIGEA, is to thank for that fact.
This law and others like it put a lot of strain on credit card companies when it comes to processing payments related to Internet gambling. Note that the law is intended to regulate and sanction payment processors, as opposed to worrying about individuals who bet online.
The credit card companies have their hands full trying to figure out, let alone comply with, the voluminous regulations that affect online gambling for U.S.-based bettors. While still possible for Americans to deposit to casinos via credit card, rejection rates have been going up.
The good news is that if you’re outside the U.S., you’re not affected by these laws and should enjoy a much smoother payment processing.
The Ideal Payment Processing Method—In Theory
In theory, using a credit card to deposit and withdraw funds to and from an online sports betting account is the easiest and best method of processing these payments.
And for European or other international bettors, indeed just using your Visa or MasterCard is a terrifically convenient option. The benefits of this mode of payment processing are numerous, such as:
— Instant deposits processed quickly and without hassle
— Get perks from credit card company such as frequent flyer miles
— Many credit cards provide identity theft protection for fraudulent purchases
— Comprehensive recordkeeping of all deposits and withdrawals, just look on your statement
— The only truly international payment processing method
Obstacles to Online Betting Credit Card Processing
Of course, there are also some drawbacks to using a credit card for online sports betting, even if you are located in a country that facilitates online credit card betting transfers:
— Gambling addicts can quickly run up un-payable bills
— Credit card companies may not be able to collect on some accounts, causing interest rates and terms for other credit card customers to become less favorable
— Too many idiots think that credit cards are “free money”
With the financial crisis of 2008, the irresponsible habits of many credit card users was thrown into stark relief, making credit card companies and the banks allied with them even more hesitant to work with online sportsbooks. The logic of the credit card companies being that if people are not even willing/able to pay their mortgage payment for their home, will they really pay back their credit card bills for all the erroneous online sports picks they’ve made over the past year?
Eventually, someday, it’s likely that the credit card companies, the international banking system, and the online casinos will find a way to make credit cards the premier payment processing method for online gaming.
That day has not yet arrived for American bettors, but for people who live in countries that are not governed by UIGEA and all the attendant regulations and restrictions, credit cards are, generally speaking, a very convenient payment processing method for online sports betting.
Just please make sure to use this payment processing method responsibly.