No Credit Cards for Some US Online Gambling

Published Monday, January 13, 2014 -
No Credit Cards for Some US Online Gambling

Banks are becoming kind of sticky when it comes to credit card use. The biggest issue banks have is with a process they call chargebacks. The chargeback mechanism exists primarily for consumer protection and people who use the chargeback facility on their credit cards can cost the banks some serious money. A consumer may initiate a chargeback by contacting their issuing bank, and filing a substantiated complaint regarding one or more debit items on their statement.

The threat of forced reversal of funds provides merchants with an incentive to provide quality products, helpful customer service, and timely refunds as appropriate. Chargebacks also provide a means for reversal of unauthorized transfers due to identity theft.

All of these issues and more cause the banks enormous difficulties that they must endure in order for the process to remain fair. The recent news headlines referring to the processing of online gambling financials in the USA and how the banks and credit card companies are refusing to allow their credit to be used for gambling transactions is an example of the real cost factor in providing banking services and credit.

J.P. Morgan Chase, Wells Fargo, American Express all of these credit card providers won’t allow the use of credit or debit cards to deposit money into online gaming accounts including online poker and sports betting in Nevada.

Steve O’Halloran, Director of public relations and public affairs for Chase Card and Merchant Services stated, “We don’t allow credit card transactions for this activity,”

A spokeswoman for American Express, Sanette Chao, echoed the comments of other financial services companies saying, the company “prohibits the use of the card for gambling services.” Chao added, “Gambling services, historically, account for a high number of card member credit losses and customer service disputes,”

There it is the ‘chargeback' and there are still alternatives for the processing of online gambling in the USA.

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