Wednesday April 15,2015 : NEW PAYMENT CODES BRING HOPE TO U.S. OPERATORS
Friday could see a game-changing development in credit card processing.
The three US states that have legalised online gambling, Nevada, Delaware and New Jersey, are probably hoping that changes in the credit card system due to be implemented this Friday (April 17) will make their lives easier and business better.
One of the hurdles facing legal operators in the States has been the reluctance of credit card processing companies to handle online gambling transactions, a backfire from the Unlawful Internet Gaming Enforcement Act, which was designed to disrupt player-casino financial transactions and has proved successful in doing just that.
After representations by regulators and operators, major companies like MasterCard, Visa, American Express and Discover are reportedly taking a more realistic view of the problem, and are set to introduce new Merchant Category Codes for legal online gambling transactions.
The adoption of the new codes rests with the individual banks issuing the credit cards, but it is anticipated that the take up will be good, improving the convenience of depositing for players at online gambling and lottery sites, and reducing the incidence rejected deposits which has been slowing down the legalised online industry.
According to a recent article in Casino Enterprise Management, there will be three new codes: state-operated online lotteries (7800); state-run online casino games (7801) and state-managed online dog/horse racing (7802).