Despite all the changes in regulations in the online gambling industryand the introduction of many different third-party payment processors, the majority of casino operators continue to rely on credit cards for deposits to their companies. Regardless of the progression of the payment processing world, players still seem to feel more comfortable using these cards than anything else. We are going to take a look at the use of credit cards for online casinos, as well as show you what to look for when choosinga place to use your credit card to deposit and play your favorite casino games.
The original payment method
There is no denying how important the credit card has been in building the online casino industry – and all online shopping for that matter. However, the casino worldhas had to deal with a lot of scammers over the years, and this has resulted in a significant number of chargebacks. This causes a lot of stress for the big credit card companies (VISA, MasterCard, American Express), which in turn caused them to consider gambling sites to be high-risk clients.
Some countries have taken a stance against online gambling and specifically focused on the credit card companies. The most notorious of these is the United States, where in2006 they made it illegal for banks to process the online gambling transactions via credit cards. Now, all that did was force sites to find alternative processors, which both charged a significant amount of fees (up to 14% per transaction) and also increased risk as these companies were based in smaller, unregulated countries. Yes, there were some third-party payment options like Neteller and Skrill introduced, but credit cards still lead the way from a percentage of all the transactions processed for online casino games.
Why do players use credit cards for gambling sites?
There are many reasons that a player would choose to use a credit card to fund their casino account. The first and most obvious reason is the convenience factor of using the cards. Most people have multiple credit cards in their wallets, and as a result,don’t have to do anything else aside from enteringthe number into the cashier of their casino of choice.
Another reason that people like to use credit cards is the trust they have already built with the card issuer. While the majority of the third-party processors are set up in regulated environments and are reputable firms, some players are just more comfortable with the companies they already know. Also, if their card is issued by a local bank, then there is a place they can go in person with any concerns they have.
Of course, one more reason players like to use credit cards for online casinos is that they are playing on credit, so it doesn’t instantly affect their bank balance. This is a dangerous game to play, however, as many credit card processors charge online gaming transactions as cash advances instead of purchases. We always recommend that players only use credit cards to a limit that they are able to pay off before incurring any interest charges. The last thing we want is for players to lose both in a casino and with their bank.
The Cost of Doing Business
As we mentioned, the casino operators who continue to rely on credit cards for the majority of their deposits are having their margins shredded by increasing processing rates. With the higher risk of chargebacks (players claiming their card was used fraudulently and having transactions reversed), processors don’t want to touch the business unless it is worth their while. This is how rates for gaming transactions have reached an average of 13% while standard credit card processing fees sit around 3%.
Operators are trying everything they can to move players away from credit cards – offering multiple alternatives and giving players special bonuses for using a method that isn’t VISA or MasterCard. The introduction of cryptocurrencies as a payment method has given new life to operators, although the volatility of the value of these coins is another risk.
The best sites for you to use your credit cards
So, what does this all mean for you as a player? Well, while you may want to hunt for sites that are offering fantastic bonuses for depositors who use alternative methods, for the time being using your credit card is a fine option. Again, we stress that you don’t want to incur interest charges as that cuts into your profitabilityas a player, so manage your balances well.
As far as where you should be playing, we have compiled a list of some great online casinos below. All of these operators accept major credit cardsand have an excellent combination of content, customer service, andpromotions. You’ll find that these sites will entertain you and are also trustworthy enough in our opinion that you will get your winnings paid to you very quickly (just not via credit cards).