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In March 2018, the UK Gambling Commission stated that it would consider banning the use of credit cards at online gambling websites. The announcement of a potential credit card ban came following the gambling authority’s report into how to make online gambling safer, deeming the removal or restriction of credit card payment options being a viable course of action to help restrict the possibility of people accruing gambling debts or gambling more than they can afford. The UK Gambling Commission found that between ten and 20 per cent of all deposits made to gambling websites are done so via the use of a credit card, which means that as much as one-fifth of online betting and gaming in the UK is being done with borrowed money. The problem is exasperated when it is considered that most credit card companies treat transactions to gambling websites as treat cash advances, which do not come with an interest-free period, entail a higher interest rate, and often incur a handling fee.

The culture secretary, Jeremy Wright, intends on holding meetings between major retail banks and online gambling operators to discuss the concern that as much as 20 per cent of deposits to gambling sites are made with credit cards using money that the players don’t own. The UK Gambling Commission seeks clarification on the statistic. They will be launching a call for evidence in February and are welcoming suggestions from the Responsible Gambling Strategy Board, which may result in increased credit card regulation or a complete credit card ban.

Up to one-fifth of online gamblers in the UK use credit cards to place deposits at online gambling websites. It appears to be very likely that the UK Gambling Commission will regulate a credit card ban, which will lead to a large number of players needing to adopt a new payment method. Online gambling websites that offer their services in the UK often accept many different payment methods, so those who are expected to soon be without their preferred method of making a deposit or withdrawal should be able to find another option which is safe and suits their needs.

Gamblers’ other options in the instance of a credit card ban

The vast majority of online gambling websites allow for the use of credit cards as a means of making deposits, and some allow for the method to be used when making a withdrawal, but not all sites will accept the entire range of other payment methods or payment services. The acceptance of specific e-wallets, instant banking methods, cryptocurrencies, payment gateways, and pre-paid cards is at the website’s discretion, so those looking for a new service with which to make payments will need to check which services can be used at each website as well as if the website allows for both deposits and withdrawals through the same service.

One of the more traditional methods is that of the bank transfer. Some players perceive the method as unsafe due to the assumption that the transfer would reveal bank details, but bank transfers do not disclose this information and also allow players to deposit very large amounts. The downside to the payment method is that it takes much longer than other methods, with players often waiting several days before the funds appear in their gambling account. Wire Transfer allows users to make deposits and withdrawals at some online gambling websites, and iDeal caters for bank transfer deposits.

The most modern method which is also deemed to be the safest due to its use of blockchain technology is that of making a cryptocurrency payment. Cryptocurrencies have become popular over the last couple of years, leading to many online gambling websites allowing for the use of different forms of crypto. Due to the decentralised nature of cryptocurrencies that utilise the public ledger system of a blockchain, users trust that their crypto and details are safe with each transaction. Crypto is tamperproof, safe, fast, cheap, and it removes the middleman between the player and the operator. The most commonly used of the cryptocurrencies is the blockchain originator, Bitcoin, but others such as Ethereum and Litecoin can also be used as payment methods. Cryptocurrencies could become the next choice for current credit card users following the news that Binance, one of the world’s largest cryptocurrency exchanges, is now accepting credit cards for crypto payments, creating a way for players to use their credit cards via cryptocurrencies at online gambling websites that accept the payment method.

At online gambling websites and across online shopping websites, e-wallet services have become commonplace, and many people who are looking to make payments online seek vendors who offer e-wallet payment services, particularly if said customers are worried about the safety of their bank details. E-wallets allow for payments from the e-wallet account or directly from a bank account online without the need to input bank or card details. PayPal is the most popular e-wallet service in the UK, with the vast majority of online gambling sites that allow for the payment method accepting it for both deposits and withdrawals. Other services such as ecoPayz, Skrill, and Neteller are also popular, but it’s more common for online gambling sites to not allow withdrawals to these e-wallet services.

People seeking alternative payment methods, should the credit card ban come into force, can also turn to pre-paid cards like PaySafeCard, electronic fund transfers through the use of debit cards or e-checks, and payment services providers like Instadebit.

The UK Gambling Commission is expected to publish its new strategy concerning the use of credit cards on gambling websites in April; the authority looks set to ban the popular payment method, so current users will need to find a new way of making deposits and withdrawals at online betting and gaming sites.

Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: With the online gambling credit card ban hovering in the UK, what are the options?