Credit Card Woes May End Soon For American Bingo Players

For online casinos and bingo sites credit card rejections are a problem especially for American players. Thanks to ill advised legislation passed in 2006 banks, credit card companies and other financial institutions are prohibited from processing gambling related transactions. If a player’s credit card was rejected due to restrictions on online gaming transactions chances are that no casino or bingo site will accept that particular credit card. Since bingo sites and casinos don’t want to reject credit card transactions they simply send the transaction to their credit card processor who requests approval from the bank that issued the card. According to recent gambling statistics almost half of all gambling related transactions are rejected. Credit cards have an MCC code that tells the bank what type of transaction is being processed.

To deal with this problem some bingo sites and casinos are requesting players to switch their credit cards to banks that have looser policies and will process gambling related transactions.; Many online gaming sites have compiled lists of ‘non hostile’ banks that will process transactions and some gaming sites give bonuses to players that switch to one of the non hostile banks. Some casinos ask players to write letters of protest to their current banks that refuse online gaming transactions. Many in the casino industry are lobbying for reform and recently MasterCard was lobbying congress for legalized online gaming. The Interactive Gaming Council has set up a special committee to address this problem.

Another measure taken by some online bingo sites and casinos is to encourage players to use gaming friendly ewallet services. Ewallet services enable players to bypass credit card restrictions. Unfortunately many ewallet services have exited the US market for fear of prosecution. A few years ago the Neteller case garnered a lot of industry attention and prompted other online payment processors to leave the US gaming market. Since ewallet services can be used to purchase a variety of goods and services transactions can be coded as non gaming leading to higher approval rates. There are still a few reputable ewallet services that will accept transaction from American players.

Most gaming industry observers and experts expect the funding woes for American players to end by the end of the year or early next year. Since many American states plan to offer residents legal online gaming experts say that it is inevitable that the federal government will take measures to tax and regulate the industry. Most players say the sooner the better!

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