Friday, February 5, 2010

Visa declining USA egaming payments

 Visa declining USA egaming payments


THE CRACKDOWN on US online gambling credit card payments that began on Wednesday is being operated by Visa as well as rival US credit card giant Mastercard, tens of thousands of US online gamblers likely to have been affected.

As reported yesterday, US-facing operators were hit by an overnight tightening of restrictions on the use of credit cards for egaming transaction ahead of the implementation of America’s Unlawful Internet Gambling Enforcement Act (UIGEA) law on 1 June, which bans the facilitation of online gambling by banks and other payment companies. 

The action was at the time of writing confirmed as applying to US-registered cards issued by Mastercard, but rumours that a crackdown had also been launched by Visa had not been substantiated. 

Repeated attempts to use a US-registered Visa card on PokerStars last night were declined, with the American poker giant sending an email in response that read: 

“Status: DECLINED. 

“Your credit card transaction has been declined. If your credit card information was entered correctly and you have sufficient funds, your transaction was probably declined due to Internet gaming restrictions set by your credit card issuer.” 

Other sites likely to have been hit by the action will include PokerStars arch rival FullTilt and US sports betting giant Sportsbook.com, which yesterday announced that it will leave the Cake Poker network to join that offered by Ireland's Merge Gaming.

UIGEA was originally supposed to have been enforced from 1 December 2009, although the US treasury later approved a delay allowing companies until 1 June 2009 to comply.

  

Mastercard crackdown leaves US players harder to pay

Mastercard crackdown leaves US players harder to pay 


US-FACING operators have been hit by an overnight crackdown on online gambling payments by credit card giant Mastercard. 

The US company is believed to have toughened its stance on the widespread practice of operators coding egaming transaction as other kinds of online commerce, which will all its US customers from using their cards to gamble online. 

Rival US card giant Visa is rumoured to have taken a similar measure, although this could not be confirmed at the time of writing. 

The action is a sign that banks and payment companies are preparing for implementation of America’s Unlawful Internet Gambling Enforcement Act (UIGEA), which bans the facilitation of online gambling by payment companies. 

This was originally supposed to have been enforced from 1 December 2009, although the US treasury later approved a delay allowing companies until 1 June 2009 to comply. 

The development will increase reliance on alternatives to credit card deposits such as those offered by EwalletXpress or Poker Echecks, which work similarly to traditional paper cheques but are issued electronically, allowing players to deposit and play from an electronic wallet. 

Sites likely to have been hit by the Mastercard move include US sports betting giant Sportsbook.com, which today announced that it will leave the Cake Poker network to join Ireland's Merge Gaming network.

The action by Mastercard coincides with a federal appeals court ruling this week upholding a contempt order for refusing to comply with a grand-jury subpoena against two companies owned by Canadian Douglas Rennick, who is accused of processing more than $350m in payments for Internet gambling companies.