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Credit Card payments
The credit card crisis
Credit card payments have long been the de facto standard online payment
service, but a growing number of credit card companies and US banks
are refusing to accept credit card payments related to online casino
gambling. The reasons that are given are the high chargeback rate
that is associated with credit card payments related to online casino
gambling, and the uncertain legal climate in the US. As a result,
if a transaction is deemed to be related to online casino gambling,
the transaction will not be authorized by some US banks.
How a credit card works
Any credit card payment is in fact a loan. If paid on time you are
not charged interest, but if not paid on time the interest rate can
be very high, although never exceeding 25%. The credit card holder
is liable for the loss or fraudulent use of the credit card up to
$50. However, frequently this fee is waved, provided the problem is
reported timely.
A typical credit card payment proceeds as follows:
Register your credit card
You have to provide the casino with your credit card details, including
your credit card number, your 3-digit credit card verification number
(CVC2 code) found on the back of your card, your name and your address.
This information will be used to validate your credit card number.
Once your credit card number has been successfully registered and
validated, you may proceed to the next phase of depositing money.
Deposit money
After selecting a successfully registered credit card number, you
may enter an amount you want to deposit. Because the casino pays a
'discount fee' on each credit card transaction, that can range between
1.7% to 4%, you are often required to make a 'minimum purchase' of
$15 or more. After submitting your deposit, the bank that issued the
credit card will check that sufficient credit is available on your
card. Once the transaction is authorized your bank will send the money
to the bank that handles the credit card transactions for the casino,
and your are ready to play. You should check that your deposit is
treated as a 'purchase' and not as a 'cash advance', because otherwise
you will have to pay a cash advance fee.
Withdraw money
Note that you can often only withdraw the amount you originally deposited
to your credit card. Additional winnings will typically be paid by
check.
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