Wednesday April 30,2014 : U.S. PROCESSING COMPANY HIGHLIGHTS CREDIT CARD PROBLEMS
In New Jersey, online punters' credit cards are only accepted 44 to 46 percent of the time, hampering growth.
At least one of the reasons for the disappointingly slow growth of legal online gambling in Atlantic City was illustrated by processor CAMS LLC this week, when it told the Associated Press news agency that only 44 to 46 percent of credit card transactions attempted by New Jersey punters were accepted by the big card companies, in reference, the largest New jersey and USA online casino and online poker room, which is Bovada has a 100% acceptance rate. They are also offering a big sign up bonus for your first credit card deposit, and promise same day withdrawal processing. Check them out here.
CAMS assessment is probably typical of the industry – it processes for the online market leader, the Borgata as well as from the Trump Taj Mahal Casino Resort and Trump Plaza Hotel and Casino, routing deposits to financial institutions.
Matt Katz, the company's CEO, opined that low acceptance of credit cards "…is the single biggest thing that's holding it back" in New Jersey.
So far this year, Internet gambling has brought in $31.6 million. The fledgling industry is growing, but not as fast as many had hoped. .
Confirming the CAMS view, Deputy Attorney General Mary Jo Flaherty from the New Jersey Division of Gaming Enforcement, said Visa was the most problematic, with just 44 percent approvals, and that American Express and Discovery do not pass any online gambling charges.
By comparison, Mastercard users achieve 73 percent approvals.
"New Jersey patrons continue to experience difficulties in use of their personal credit and debit card accounts in funding individual Internet gaming accounts," she said, adding that the DGE "…continues to work directly with financial institutions, banks and credit card companies and relevant regulators and authorities with respect to the legality of online gaming where authorized as in New Jersey, as well as regarding the appropriateness of payment processing for legalized online gaming."
American Express spokesman William Tsang told AP that his company does not do business with "high-risk industries" and prohibits the use of the card for any gambling services, whilst Discovery declined to comment.
DGE figures show that in December, 42 percent of players with the Borgata and the two Trump casinos were able to fund accounts using a credit card. That figure rose to 44 percent in January and 46 percent in February before declining to 44 percent in March.
CAMS claims that those figures are very close to its acceptance rates in Nevada and Illinois, where it serves the state lottery.