According to many gambling news articles, credit cards are the most popular payment method among casino users. This resulted from people’s switch to digital transactions instead of using fiat money. Bank cards are a convenient and fast way to pay for any product or service.
Credit cards caught on in the gambling industry as well. First, they are accepted by the majority of casinos. Secondly, users have already got accustomed to them, which helps them to deposit at online casinos quickly.
However, strict gambling regulations and banks’ fear to work with operators have a direct influence on this payment method. In this article, we will consider credit cards’ role in the iGaming vertical, obstacles, which operators face while implementing them, and the future of such cards in gambling.
Facts about credit cards as the most popular payment method
According to recent polls, credit cards rank first in the rating of the most widely used payment methods. Only five percent of all deposits on casino websites made via a debit card, one percent – via prepaid cards, while eighty-one percent of players use credit cards to replenish the balance. Forty-five percent of those gamblers who use credit cards have it as the only payment option.
Another interesting fact from the recent survey is that players with such cards replenish the account at online casinos by twenty percent less on a monthly basis than those who prefer various methods. Usually, players have a separate card for gambling, and the majority of them have only one credit card that they use at virtual casinos (85%). Eleven percent use two credit cards for gambling, two percent – three cards, 1% – four or more.
These data reflect a broad picture of the role of credit cards in gambling. Undoubtedly, it is a widely-applied payment option. Operators implement it on websites as customers seek it in most cases. Although new technologies, such as blockchain, leak in the casino market as well, those who have tried the convenience of cards don’t want to use something new. Even the popularity of blockchain stocks can’t make experienced gamblers change this deposit and withdrawal method.
Recent regulations connected with credit cards in gambling
While players choose credit cards as the most convenient payment method, both banks and state gambling regulators continue to fight against their usage for such purposes. Among the countries, which have already gone on the war-path, are the following:
- Great Britain;
- Spain;
- Australia;
- Ireland;
- Norway;
- Germany.
Some of these countries banned the usage of such cards at virtual casinos, others – only started to consider this proposal and study the pros and cons. Let’s discuss some of these jurisdictions in more detail.
Great Britain
The UK has been always known for its tight restrictions on the gambling industry. The country’s watchdog, the Gambling Commission, supported by the Department for Culture, Media and Sport (DCMS) set a veto on the usage of credit cards for gambling purposes on April 14, 2020.
The government bodies have officially announced that operators have to stop accepting payments made via these cards. The new law has touched upon all industry sectors, including online and non-remote bookmakers, Internet and land-based casinos, lotteries, which allow payments via smartphones, and bingo halls.
At the same time, the usage of such cards isn’t prohibited for lotteries that sell scratch cards or tickets in shops not oriented towards gambling services. However, operators were also warned that they weren’t allowed to accept deposits made through e-wallets replenished via credit cards.
The reason for banning credit cards was a series of consultations dedicated to this topic. It has been revealed that this payment option is often used by individuals with gambling addiction signs.
Australia
Australia is another country, which has also tried to fight against the utilizing of credit cards by gamblers. However, contrary to the UK, the initiative was first raised by its major bank – Macquarie Bank. It started to block all transactions connected with gambling made with credit cards. The bank representatives have emphasized that this decision has been taken in order to facilitate their customers’ financial welfare. Later, Bank Australia took up the initiative and joined Macquarie Bank in the decision to stop processing such payments.
Initially, this idea came from the Australian parliament. It prohibited payments via credit cards in brick-and-mortar casinos. Moreover, players aren’t allowed to withdraw money at nearby ATMs. What is even more interesting, this rule still isn’t applicable to online gambling.
Recently, the government has reconsidered this question and decided to add new provisions to the Interactive Gambling Amendment Act to fix this problem. Of course, the UK became an inspiration for Australia to make changes in its gambling legislation. However, the main reason for this proposal is the fact that Australians spend $25 billion on gambling annually. Currently, the Senate is responsible for the process of banning credit cards. It is expected that by the end of July, its representatives will provide a report on this issue.
Germany
This year was rich in the events for Germany in terms of gambling regulations. The country’s online gambling treaty will bring many positive changes for the online vertical.
However, there is always a fly in the ointment. The creation of a well-regulated gambling space is course, good news for players. At the same time, regulatory bodies have already implemented several tight restrictions and are going to add more. Credit card gambling is one of them, along with strict marketing rules, deposit limits, and slot machine requirements. German players will be able to use only three payment options, and bank cards together with e-wallets will be prohibited at virtual casinos.
This means that widely used Matercard and Visa can’t be a payment method. In 2020, credit card gambling got total ban. Two giant financial companies refused to process transactions made on gambling websites.
Norway
Norway is another country, which showed intolerance to credit cards in the iGaming business. The country started its fight against credit gambling eleven years ago. In 2010, its government enacted a law, which imposed a ban on the usage of credit and debit cards at remote and brick-and-mortar casinos. In 2020 and 2021, the government continued the war, reminding operators that accepting such payment is a breach of the law. The regulator continues to detect financial institutions, which partner with casinos, and asks them to block illegal transactions.
What about business credit cards?
A business credit card is a card issued for business purposes. With its help, company owners get access to credit money, which they can use, for example, for the development of their firms. The major difference between a standard card and a business credit card is that the holders of the latter can track their expenses and get more details about them. In addition to this, such cards usually have higher credit limits. They also provide owners with a range of bonuses, which can be useful for a business.
Is it possible to gamble with business credit cards? First, it is worth mentioning that quite a big number of such cards are used at casinos. However, it is a bad idea to link card credentials to gambling websites. The main reason for this is that a bank considers it as a risky transaction and blocks the card.
Interest-free credit cards in gambling
The usage of interest-free credit cards for playing at online casinos can be very tempting. Such cards always have a certain limited interest-free period, so sooner or later, a user will need to pay debts. The period depends on a bank and its terms. If holders replenish the balance before the end of the period, they don’t have extra expenses. If users don’t settle a debt in time, interest at a rate of a certain percentage will be charged.
One more note is that such cards are useless at casinos. Gambling with them is totally restricted. Moreover, you can’t make money transfers from one card to another. So, even if you want to cheat the system by replenishing other accounts with a 0%-fee card, remember that it is impossible.
List of the best credit cards
It goes without saying that despite all prohibitions, casino players continue to deposit with credit cards. Many websites have this payment option included, and for many gamblers, it remains the most convenient method.
Here is the list of the best credit cards, which are users’ top picks:
- Chase Freedom Unlimited Card – a credit card with the most generous cashback.
- Citi Double Cash Card – a card, which doesn’t include annual charges.
- Citi Simplicity Card – No Late Fees Ever – the most convenient credit card for money transfers.
- Discover it Secured Credit Card is the most reliable credit card offering more secured transactions.
- Petal 2 “Cash Back, No Fees” Visa Credit Card – a card that has favorable terms and will become a good solution for those who want to borrow an average sum of money.
List of the best credit cards in the UK
Speaking about Great Britain, as has been mentioned above, the country’s government is negatively predisposed for credit gambling. However, the country’s citizens often choose the following credit cards for various purposes:
- 29 Month Balance Transfer Credit Card from Sainsbury’s Bank.
- Halifax’s Long 0% Balance Transfer Credit Card.
- Platinum Balance Transfer Card.
As the latest tendency shows, the EU countries will continue to separate banks from gambling transactions. This refers to both credit and debit cards. Players who use credit cards on a daily basis, in their turn, will continue to search for remote casinos, which don’t follow strict rules and allow such payments. Nevertheless, financial giants won’t partner with the gambling industry providers due to threats from governments. Some of the banks have already tried to avoid risks connected with gambling firms. We can see this using the example of Sweden. Not so long ago, several major banks refused to stay in partnership with gambling companies. It seems that Swedish banks won’t be the only example in the nearest future.
Read more: Best Gambling Payment Providers
