Prepaid cards are possibly the best option for making a sportsbook deposit. Anonymity, security, speed and more are what make this deposit method a player favorite. Prepaid cards have many forms and uses but when it comes to online gambling, they are a perfect fit because they have only a certain amount of funds and are not connected to your bank account. This gives you the opportunity to play with funds that cannot be traced back to their source and therefore cannot enable hackers to drain your bank account.
Of course, as with any payment method, there are both advantages and disadvantages to using prepaid cards to deposit in a sportsbook. Here, we will examine them in detail and explain exactly how they work, how you can use them, and the exact positives and negatives to using them when it comes to sports betting.
How Prepaid Cards Function
Esports betting is also prevalent at credit card sites letting you make picks on the top competitions and teams from around the world. Casino and Racebooks. The majority of gambling sites that accept credit cards. Of the two main credit cards in Canada (Visa & MasterCard), MasterCard does have the better success rate at our three top rated sportsbooks. MasterCard isn't as concerned as Visa about not allowing online gambling deposits so if you have a MasterCard I would use that over a Visa. Sportsbooks Accepting.
Before we go any deeper, it is worth quickly going over the key difference between prepaid cards and credit or debit cards. It is obvious that a prepaid card is not tied to your bank account, however, that is not all there is to it. As you may know, the process of getting a credit card is actually not simple at all and your request might actually get rejected. Debit cards require a checking account and a visit to the bank, so that is also not quite as simple as going to a store and buying one.
Depending on the type of prepaid card you have in your possession or wish to use, this process varies. For the most common type of prepaid cards, you usually need to find a location, like a gas station, grocery store, or in some cases a more specific place, that sells them. You can choose between prepaid cards with different amounts of funds in them, though, they mostly come in small denominations. You can purchase them with cash or by any other means. When you purchase a prepaid card, it is in no way linked to the means with which you have paid for it. This means that if you have used your debit card, for instance, the prepaid card still will not in any way be linked to it or your bank account.
If you wish to purchase a virtual prepaid card though, you simply need to go to the website of the payment solution, register, and pay for it online. In some cases, you will be required to authenticate your personal details, which means prove your identity with additional documents. Then, you will receive the codes of the card and you will be able to start using it immediately. However, in order to purchase a virtual prepaid card, you will need to use one form of online banking or another, or pay with your credit or debit card. This means that you will still have to provide your banking details to a third party.
After you have purchased a prepaid card and in some cases, after it has been activated, you can use it to deposit in your favorite sportsbook. Some allow for the simultaneous use of multiple prepaid cards in order for a player to create a more substantial bankroll. However, most often, you will have to deposit every prepaid card for itself.
Types of Prepaid Cards
Many players may think that there is only one type of prepaid card, however, there are actually plenty of options. Prepaid cards come in all shapes and sizes and offer different conditions for their users – some have fees, others do not, some can be reloaded, others not. Here, we will go over the main types and what exactly it means to hold a card of that sort.
Prepaid Gift Cards
This type of prepaid card comes in a physical form, almost indistinguishable from a debit or credit card. Most often, you will find prepaid gift cards that have set values, limits, and expiration dates. There are a ton of companies worldwide that offer this banking option, including Mastercard and Visa through authorized stores and online retailers. Additionally, there are companies that collaborate with these two giants in the industry, which gives players more options with the same level of security.
The tricky thing to remember when purchasing a gift card is that some of them can be used only in certain stores, or for certain types of goods or services. This means that if you buy a prepaid gift card from a bookstore, it will most likely only be usable there. Of course, there are types of prepaid gift cards that can be purchased anywhere and used everywhere, the important thing is to note the difference. If your prepaid gift card is powered by Mastercard or Visa, then you will most likely be able to use it wherever debit and credit cards by the same companies are accepted.
Usually, these cards cannot be reloaded and expire after a set period of time. They can also expire after you use up their entire balance and usually, after 6 or 12 months fees start applying, if you have not done that. It is important to note, however, that you cannot incur debt this way – once again, when the balance reaches 0, the card is closed.
Additionally, another distinction must be made between prepaid gift cards and regular gift cards. In some cases these terms are interchangeable, however, when used in this exact context there is a definitive difference. What is usually meant by a gift card is a card with some sort of discount on it for a given brand or retailer. So, when you are looking for a prepaid card, make sure that the one you are purchasing can be used to deposit funds into a sportsbook account.
Reloadable Prepaid Cards
This is the type of prepaid card you would probably want to get if you are a regular punter and wish to use this deposit method consistently. Naturally, the reason for this is that you do not have to get a new card every single time you wish to deposit some funds into your sportsbook account.
There are different ways to reload a prepaid card and they can vary greatly depending on the issuer of the card. Sometimes, you will have to go to the store that you bought your card from and pay in cash, or you may be able to pay with your credit or debit card, or with a check, or any other means. In other cases, you may be able to transfer funds directly from a card or bank account into your prepaid card.
However, usually, prepaid cards come for free for a limited time and after a few months, you will need to start paying monthly fees. They are not high but it is important that you are fully aware of them. Not every reloadable prepaid card comes with monthly fees but, none of them come completely for free either. You may need to pay a fee for different types of transactions or conversion of currencies, and the likes.
Virtual Prepaid Cards
Virtual prepaid cards are offered by plenty of authorized vendors and are still mainly Mastercard or Visa cards. They are not physical cards, however, which might be somewhat confusing to some players. That actually guarantees a higher level of security as they cannot be stolen or lost.
They were created specifically for online payments so using them to make a deposit at an online sportsbook is perfectly fitting. However, it is not quite as convenient to acquire a virtual prepaid card as it is to obtain a physical one. You will need to create an account online with one of the online banking companies that offer this option. In some cases, you will need to provide a fair amount of personal information and authenticate it. To put it plainly – it will take a while.
Despite that, virtual prepaid cards are still a really good option for online sports bettors because of their incredible level of security and perks. In most cases, virtual prepaid cards come with lower fees and higher single transaction limits.
Voucher Prepaid Card
As we already said, prepaid cards come in many shapes and sizes, one of which happens to be a voucher. It might sound a bit odd, but their function is the same, they just come on a slip of paper instead of plastic. You get a receipt that contains all the information you need to make a payment.
This form of prepaid cards is perhaps the most anonymous out of all – it is not linked to any personal information whatsoever. It is not an uncommon payment method to sportsbooks either, on the contrary – such prepaid cards are widely accepted.
Additionally, some companies offer the possibility of transferring the funds you have left on your old prepaid card to your next one, thus allowing you to be in full control of your finances. This way you do not end up losing any money.
Depositing to your Sportsbook Balance
Depositing with a prepaid card is quite simple when you have purchased one that is powered by Visa or Mastercard. All you need to do is find the correct deposit option, click on it, and punch in the numbers. Regardless of whether the card is plastic or virtual the procedure is just as simple as depositing with a credit or debit card but far more secure.
However, when it comes to the voucher type of prepaid card, there is a difference. On the receipt, you receive once you have purchased the prepaid card, will be located a code that will be around 10 digits in most cases. You need to enter the code in order to pay with the funds on that type of prepaid card which means that Mastercard and Visa have nothing to do with it. So, you will need to find the exact company that issued your card in the list of deposit options.
Once you have done that, you will be taken to a secure page and will be able to enter the code. After that, the payment is completed instantaneously and you can start playing right away.
Sports Betting Cards
Withdrawing from your Sportsbook Balance
Some prepaid cards can be used to make withdrawals from an online sportsbook. The way to tell whether yours can do that is quite simple – the prepaid card you have purchased must also be linked to some form of online banking, otherwise, there is simply no account for the withdrawal funds to go into.
Virtual prepaid cards all come with an online banking account of one sort or another, so in most cases, you will be able to use them for withdrawals. Some physical prepaid cards are linked with online banking solutions as well and so you will be able to withdraw with them too. However, with virtual prepaid cards, you cannot physically withdraw money from an ATM, while some plastic prepaid cards allow that.
In case your prepaid card service does not allow for physical withdrawals, then you will be able to transfer the funds to your bank account, which, unfortunately, can take a while. Your best bet is to simply use another service to make withdrawals if you insist on getting your winnings as soon as possible.
Cost and Fees
Some prepaid cards have an activation fee, others do not. Usually, an activation fee does not exceed $3 or its equivalent in any other currency. There may also be an activation period but that is mostly not the case. Usually, your card is activated upon purchase and is immediately ready to use.
As we already mentioned, there are monthly fees involved when it comes to the prepaid cards of certain companies. If there aren't any right away, there will be some after a set period of time has passed and there are still funds on the card. Additionally, there might be fees for different types of transactions and there will definitely be a fee for currency conversions every time this service is required. If your prepaid card is reloadable, there will most likely be a fee you will need to pay every time you top-up.
Of course, all the applicable fees must be available to you at all times. If you are uncertain about whether something is subject to fees, or you simply cannot find where the applicable fees are listed, we recommend you contact the customer support team of your prepaid card provider.
Security and Privacy
We already mentioned this several times but it is definitely worth repeating again – this is the most secure payment method online. Prepaid cards do not disclose any personal information at all and in case someone gains access to your prepaid card, they will only be able to use the funds that are currently on the card as it is not linked to your bank account. This means that, if you play it smart and get a prepaid card with the exact amount you wish to deposit, even if some hacker gets access to it he'll be left empty handed.
On top of that, when you are using voucher prepaid cards, in order to enter their code you will be taken to an extremely secure page which meets the security standards of banking institutions worldwide. Of course, all reputable online sportsbook nowadays are also highly secure, with SSL encryption guarding your data 24/7 and even more safety measures.
When it comes to plastic or virtual prepaid cards, since they are mostly powered either by Mastercard, Visa, or American Express, you will be taken to another secure page so you can enter the card's details and most likely additional security codes. This includes the safety of Mastercard SecureCode, Verified by Visa, and so on. This additional layer of security is actually called 3-D secure and is an XML-based protocol.
Advantages of Prepaid Cards
The greatest advantage of using prepaid cards is the anonymity they grant. The fact that they cannot be traced back to you or your bank account is great news when it comes to both privacy and security. Regardless of whether you have a prepaid card by Visa, Mastercard, American Express, or a voucher-type one, this is an extremely secure payment method.
Of course, something that we cannot overlook is the fact that this type of banking does not allow players to overspend. There is only a certain amount of fund on the card and you cannot spend more than that. This is great for people who may have a spending problem or those battling gambling addictions.
![Cards Cards](https://judipokerceme.com/wp-content/uploads/2020/03/Online-Football-Betting0.jpg)
Another positive of this payment solution is that there is no lengthy registration process required, that is of course if you are getting the physical type of prepaid card. It is so simple to get one and they are so easy to use. On top of that, deposits with this method are instant.
Disadvantages of Prepaid Cards
The biggest disadvantage of prepaid cards is that most of the time, you will need to choose a different withdrawal method. In the cases where online banking methods allow for cashouts, the wait might be considered a disadvantage as well.
Another downside of prepaid cards is that you need to find a place that sells the exact one you need and go there. Of course, you could get a virtual one but then you would need to make a registration and provide personal information. So, you will either need to go to a real-world location or disclose your personal information with a third party.
Something else that could prove problematic to high-rollers is the fact that some forms of prepaid cards only come in small denominations. This means that they will have to make multiple deposits. However, in such cases, sportsbooks usually allow for multiple simultaneous deposits with the same method.
Conclusion
Prepaid cards are incredibly convenient and secure. The lack of disclosure of personal information is highly valued by sports bettors worldwide. The simplicity of obtaining a prepaid card is also quite alluring to players and with good reason. The process of obtaining a credit card or registering for an e-wallet are both far more complex, long, and definitely not quite so anonymous.
Prepaid cards allow players to retain their privacy, while still offering speed and efficiency. With their help, it is easy to stay in control of your finances and focus on playing instead of worrying about how much you are spending. Once again, this is perhaps the ideal payment method for sports bettors.
Credit card gambling sites are simply online casinos, sportsbooks, or poker rooms that accept credits cards as a method of funding a player's betting account. It can also be equated to using your credit card as a cash advance for betting purposes as online sportsbooks don't offer credit like some brick and mortars.
To make things easier for you, we've compiled the above list of some of the best sites that provide the best credit card banking system for their players.
Betting Site | Bonus | Bet Now | |
---|---|---|---|
1 | up to €30 Free Bet | Go to Site | |
2 | 22Bet | 100% up to €122 | Go to Site |
3 | 100% up to €200 | Go to Site | |
4 | 10Bet | 100% up to €50 | Go to Site |
5 | 100% up to €50 | Go to Site |
Types of Cards
Most of the sites that we review accept Visa first and foremost, but Mastercard is close behind. Other more frequently offered card payments include:
The prime areas that the site services determine the cards that are accepted but, for US and UK sites, Visa and Mastercard will rank the highest.
Why Are Credit Cards So Popular for Online Betting?
There are many ways to fund betting accounts these days, as it seems like new financial services are popping up monthly, but most customers have at least one credit card.
On the merchant's end, credit card acceptance is typically at the top of their list banking methods as these sites want to cater to as many potential bettors as possible.
Unlike the US, in locations like the United Kingdom, where online betting is legal as long as the site is licensed by the UK Gambling Commission, credit card acceptance is practically a slam dunk. Players will still come across a few banks here and there that may decline an online gambling transaction anyway, but most people shouldn't have a problem.
Don't Present That Card Just Anywhere
You may have your Visa in hand ready to buy some chips or spin those reels, but you don't want to use a credit card with the first site that pulls up on your search. You'll want to factor in reputation, fee structure, and payout processing into your decision-making process.
Credit or Cash Advance?
Using a credit card is essentially taking a cash advance from your bank or credit card provider and, even though most transactions aren't recorded that way for everyday purchases, gambling may trigger an additional cash advance fee.
It's entirely up to the issuer of the card, but they can code your transaction as a cash advance and tack on those higher interest rates that accompany that additional service. It can get pricey for players who use a site that charges for the transaction and then have their bank apply cash advance fees as well, so credit card use may be the easiest, but it's certainly not the cheapest.
The Fees
Putting aside the APR (Annual Percentage Rate) that banks charge monthly for any carryover of a balance, the casino, sportsbook, or poker room may also tack on some costs of their own.
This is a more common practice with sites that allow for players from the United States. You'll find that the UK or European servicing websites that prohibit US registration are much more generous in their banking policies and are typically fee-free.
The mention of any charges being assessed for credit card use may bring to mind withdrawal fees but, believe it or not; some sites charge players to transfer into their betting account as well. One well-known sportsbook charges 5.9% just to make a deposit using Visa or Mastercard, and then there are other costs added to the reverse transactions as well.
One other thing to take into consideration is the way you're initiating your deposit. A fee-free designation or the posted rates, if there are any, apply to transactions made using the automated system hosted within the website. This is the most straightforward method as players can input their card information, the amount they want to transfer, and then the bank makes its approval decision, all within seconds.
Blackjack basic strategy single deck. If on the other hand, you go to the customer service department and make a charge by phone request, you could be looking at extra fees. It's not uncommon, even for a betting sites that offers free banking, to charge something for payments by phone.
There's one other fee that could be assessed depending on your location and that of your chosen gambling site, and that's the international service fee. In some cases, you could be charged a percentage of your deposit and/or withdrawal for currency exchange.
Turnaround Time for Credit Card Transactions
One of the benefits of using a credit card to transfer money to a gambling site is the speed of the transaction, at least for deposits. Payments made using the automated system are approved (or denied) in a matter of seconds, and that money is then immediately made available for betting use.
Payouts, on the other hand, are an entirely different story. We'll get more in depth with withdrawals in a moment but, but credit card payouts are not always an option.
The websites that do allow for those reverse transactions still take much longer than instant deposits that are just so appealing.
Cashing out any winnings first has an internal approval process by the sports betting cashier attached to make sure that any bonus wagering requirements have been met and that the payout is in line with its policies.
Then, there could be another waiting period as the payment request is sent to the credit card provider for processing. Some websites will promote fast turnarounds within a few days, but some have as high as a 7-10 business day window before you'll have cash in hand or, more accurately, 'cash on card.'
Non-Credit Card Payouts
Sports betting sites require their customers to use the same method for both deposits and withdrawals but, in the case of credit card users, that's not always an option. If we had to estimate, we'd say that only about 40% of sites will offer credit card payouts and they're usually not the ones that allow US players to join.
If your chosen gambling provider doesn't allow for credit card payouts, the default method is generally a check or some bank or wire transfer which, in both cases, will hold up your payment anywhere from a few days to a few weeks, so know these requirements before depositing with a credit card.
The 7995 – AKA the Challenge For US Players
The legality of online gambling for US players has never been well defined, so that everyone would be on the same page. But, the one highly referenced act, the Unlawful Internet Gambling Enforcement Act of 2006 is the one that sent US-based online gambling providers packing.
Although they moved their physical operations, where does that leave players?
Well, the act doesn't state that online gambling is illegal. What games are played at casinos. What it addresses is the payment processing for internet betting, directly targeting banks and the operators but not the customers who use the services.
Credit card companies use a coding system involving a list of merchant codes that, in the most general terms, defines the purchase being made. For example, if you paid for a meal in a restaurant, it would fall under the 'dining' code.
When there was nothing on the books officially allowing for online betting anywhere in the US, transactions were categorized under one main code, 7995.
The New Jersey, Nevada, And Delaware Effect
In 2013, when online gambling was officially legalized in the states of New Jersey, Nevada, and Delaware, players and operators still faced the challenged of the dreaded 7995. Even though the transactions should have been approved, financial institutions retained the blanket decline without any further investigation.
As you can imagine, that did not sit well with the casinos or the customers so, in 2015, new codes were added by Visa, Mastercard, Discover, and American Express to define further the transaction that was initiated.
The three new codes categorized the following:
- Government-run online lotteries
- Regulated online casinos
- Regulated events for online horse and dog racing
Mastercard also has a newer code that is used for cash advances for legal gambling.
This doesn't open up approvals across the board but does allow for easier use within the state lines of Nevada, Delaware, and New Jersey.
Non-Direct Use Of Credit Cards
Even if you aren't able to use your credit card for a straight deposit into a betting account, there are still some ways you can use it, and you may even save yourself some money by taking a different route.
These days, gambling sites have expanded their menus, adding to the traditional credit card and wire transfer methods to include e-wallets like Skrill or PayPal as well as Bitcoin. Bitcoin has become one of the more favored ways to conduct financial transactions as there isn't an overseeing authority designating how you can and can't use your money.
e-Wallets Betting Sites
Can be funded with a credit card by using an exchange company like Coinbase. You set up your credit card and transfer in from your local currency, and it can then be exchanged to Bitcoin and put into your wallet for a direct transfer to any sportsbook or casino that takes this cryptocurrency.
In some cases, depending on your 'between' method used, you could save yourself some fees that the sportsbook may apply to credit card transactions.
![That That](https://www.sportsbookgurus.com/images/sportsbooks/basic/5dimes160.gif)
Another positive of this payment solution is that there is no lengthy registration process required, that is of course if you are getting the physical type of prepaid card. It is so simple to get one and they are so easy to use. On top of that, deposits with this method are instant.
Disadvantages of Prepaid Cards
The biggest disadvantage of prepaid cards is that most of the time, you will need to choose a different withdrawal method. In the cases where online banking methods allow for cashouts, the wait might be considered a disadvantage as well.
Another downside of prepaid cards is that you need to find a place that sells the exact one you need and go there. Of course, you could get a virtual one but then you would need to make a registration and provide personal information. So, you will either need to go to a real-world location or disclose your personal information with a third party.
Something else that could prove problematic to high-rollers is the fact that some forms of prepaid cards only come in small denominations. This means that they will have to make multiple deposits. However, in such cases, sportsbooks usually allow for multiple simultaneous deposits with the same method.
Conclusion
Prepaid cards are incredibly convenient and secure. The lack of disclosure of personal information is highly valued by sports bettors worldwide. The simplicity of obtaining a prepaid card is also quite alluring to players and with good reason. The process of obtaining a credit card or registering for an e-wallet are both far more complex, long, and definitely not quite so anonymous.
Prepaid cards allow players to retain their privacy, while still offering speed and efficiency. With their help, it is easy to stay in control of your finances and focus on playing instead of worrying about how much you are spending. Once again, this is perhaps the ideal payment method for sports bettors.
Credit card gambling sites are simply online casinos, sportsbooks, or poker rooms that accept credits cards as a method of funding a player's betting account. It can also be equated to using your credit card as a cash advance for betting purposes as online sportsbooks don't offer credit like some brick and mortars.
To make things easier for you, we've compiled the above list of some of the best sites that provide the best credit card banking system for their players.
Betting Site | Bonus | Bet Now | |
---|---|---|---|
1 | up to €30 Free Bet | Go to Site | |
2 | 22Bet | 100% up to €122 | Go to Site |
3 | 100% up to €200 | Go to Site | |
4 | 10Bet | 100% up to €50 | Go to Site |
5 | 100% up to €50 | Go to Site |
Types of Cards
Most of the sites that we review accept Visa first and foremost, but Mastercard is close behind. Other more frequently offered card payments include:
The prime areas that the site services determine the cards that are accepted but, for US and UK sites, Visa and Mastercard will rank the highest.
Why Are Credit Cards So Popular for Online Betting?
There are many ways to fund betting accounts these days, as it seems like new financial services are popping up monthly, but most customers have at least one credit card.
On the merchant's end, credit card acceptance is typically at the top of their list banking methods as these sites want to cater to as many potential bettors as possible.
Unlike the US, in locations like the United Kingdom, where online betting is legal as long as the site is licensed by the UK Gambling Commission, credit card acceptance is practically a slam dunk. Players will still come across a few banks here and there that may decline an online gambling transaction anyway, but most people shouldn't have a problem.
Don't Present That Card Just Anywhere
You may have your Visa in hand ready to buy some chips or spin those reels, but you don't want to use a credit card with the first site that pulls up on your search. You'll want to factor in reputation, fee structure, and payout processing into your decision-making process.
Credit or Cash Advance?
Using a credit card is essentially taking a cash advance from your bank or credit card provider and, even though most transactions aren't recorded that way for everyday purchases, gambling may trigger an additional cash advance fee.
It's entirely up to the issuer of the card, but they can code your transaction as a cash advance and tack on those higher interest rates that accompany that additional service. It can get pricey for players who use a site that charges for the transaction and then have their bank apply cash advance fees as well, so credit card use may be the easiest, but it's certainly not the cheapest.
The Fees
Putting aside the APR (Annual Percentage Rate) that banks charge monthly for any carryover of a balance, the casino, sportsbook, or poker room may also tack on some costs of their own.
This is a more common practice with sites that allow for players from the United States. You'll find that the UK or European servicing websites that prohibit US registration are much more generous in their banking policies and are typically fee-free.
The mention of any charges being assessed for credit card use may bring to mind withdrawal fees but, believe it or not; some sites charge players to transfer into their betting account as well. One well-known sportsbook charges 5.9% just to make a deposit using Visa or Mastercard, and then there are other costs added to the reverse transactions as well.
One other thing to take into consideration is the way you're initiating your deposit. A fee-free designation or the posted rates, if there are any, apply to transactions made using the automated system hosted within the website. This is the most straightforward method as players can input their card information, the amount they want to transfer, and then the bank makes its approval decision, all within seconds.
Blackjack basic strategy single deck. If on the other hand, you go to the customer service department and make a charge by phone request, you could be looking at extra fees. It's not uncommon, even for a betting sites that offers free banking, to charge something for payments by phone.
There's one other fee that could be assessed depending on your location and that of your chosen gambling site, and that's the international service fee. In some cases, you could be charged a percentage of your deposit and/or withdrawal for currency exchange.
Turnaround Time for Credit Card Transactions
One of the benefits of using a credit card to transfer money to a gambling site is the speed of the transaction, at least for deposits. Payments made using the automated system are approved (or denied) in a matter of seconds, and that money is then immediately made available for betting use.
Payouts, on the other hand, are an entirely different story. We'll get more in depth with withdrawals in a moment but, but credit card payouts are not always an option.
The websites that do allow for those reverse transactions still take much longer than instant deposits that are just so appealing.
Cashing out any winnings first has an internal approval process by the sports betting cashier attached to make sure that any bonus wagering requirements have been met and that the payout is in line with its policies.
Then, there could be another waiting period as the payment request is sent to the credit card provider for processing. Some websites will promote fast turnarounds within a few days, but some have as high as a 7-10 business day window before you'll have cash in hand or, more accurately, 'cash on card.'
Non-Credit Card Payouts
Sports betting sites require their customers to use the same method for both deposits and withdrawals but, in the case of credit card users, that's not always an option. If we had to estimate, we'd say that only about 40% of sites will offer credit card payouts and they're usually not the ones that allow US players to join.
If your chosen gambling provider doesn't allow for credit card payouts, the default method is generally a check or some bank or wire transfer which, in both cases, will hold up your payment anywhere from a few days to a few weeks, so know these requirements before depositing with a credit card.
The 7995 – AKA the Challenge For US Players
The legality of online gambling for US players has never been well defined, so that everyone would be on the same page. But, the one highly referenced act, the Unlawful Internet Gambling Enforcement Act of 2006 is the one that sent US-based online gambling providers packing.
Although they moved their physical operations, where does that leave players?
Well, the act doesn't state that online gambling is illegal. What games are played at casinos. What it addresses is the payment processing for internet betting, directly targeting banks and the operators but not the customers who use the services.
Credit card companies use a coding system involving a list of merchant codes that, in the most general terms, defines the purchase being made. For example, if you paid for a meal in a restaurant, it would fall under the 'dining' code.
When there was nothing on the books officially allowing for online betting anywhere in the US, transactions were categorized under one main code, 7995.
The New Jersey, Nevada, And Delaware Effect
In 2013, when online gambling was officially legalized in the states of New Jersey, Nevada, and Delaware, players and operators still faced the challenged of the dreaded 7995. Even though the transactions should have been approved, financial institutions retained the blanket decline without any further investigation.
As you can imagine, that did not sit well with the casinos or the customers so, in 2015, new codes were added by Visa, Mastercard, Discover, and American Express to define further the transaction that was initiated.
The three new codes categorized the following:
- Government-run online lotteries
- Regulated online casinos
- Regulated events for online horse and dog racing
Mastercard also has a newer code that is used for cash advances for legal gambling.
This doesn't open up approvals across the board but does allow for easier use within the state lines of Nevada, Delaware, and New Jersey.
Non-Direct Use Of Credit Cards
Even if you aren't able to use your credit card for a straight deposit into a betting account, there are still some ways you can use it, and you may even save yourself some money by taking a different route.
These days, gambling sites have expanded their menus, adding to the traditional credit card and wire transfer methods to include e-wallets like Skrill or PayPal as well as Bitcoin. Bitcoin has become one of the more favored ways to conduct financial transactions as there isn't an overseeing authority designating how you can and can't use your money.
e-Wallets Betting Sites
Can be funded with a credit card by using an exchange company like Coinbase. You set up your credit card and transfer in from your local currency, and it can then be exchanged to Bitcoin and put into your wallet for a direct transfer to any sportsbook or casino that takes this cryptocurrency.
In some cases, depending on your 'between' method used, you could save yourself some fees that the sportsbook may apply to credit card transactions.
Bitcoin Betting Sites Evolving into Credit Card Sites
In 2014, Bitstarz became the first Bitcoin-only casino to start taking credit cards. It may seem like an odd thing to do because Bitcoin allows for such easy deposits and withdrawals, but if you think about it, it makes sense.
Credit cards have a higher acceptance rate for deposits than payouts and players don't want to wait weeks to receive a check in the mail or be made to set up a bank transfer.
Accepting credit cards for deposits and then converting to Bitcoin for withdrawals allows for nearly instant transactions in both directions for the customer, as well as a way to put some Bitcoin away for investment purposes. If cash in hand is needed quickly, though, an exchange service can also transfer that Bitcoin to your designated traditional currency and put it in your bank account or credit your card.
Debit, Prepaid, And Gift Alternatives
We're talking specifically about credit cards here, but there are plenty of similar card alternatives that may offer easier acceptance and lower fees.
Debit cards have been used as long as credit cards in the world of online betting and usually go hand in hand with the credit card structure. So, instead of saying credit cards and debit cards are allowed, the site may just put all Visa designated cards, Mastercard and Maestro into one category. The fee structure is typically the same, and the acceptance is still in the hands of the bank or card provider.
Gift and prepaid cards that have the Visa designation or are provided by another primary card company will usually come with the same charges attached, if any, but may allow for easier approval.
Sports Betting Sites That Accept Prepaid Cards
These types of non-credit based cards act as cash transactions as the prepaid cards are loaded with a designated amount of money and your debit card is pulling directly from your checking account based on your available balance.
The Benefits to Credit Card Gambling
- Speedy deposits so you have your money available for betting in an instant
- Allows for currency exchange
- Many players have at least one credit card
- Depending on available card credit, you can keep overspending at bay
- Outside of the US, most credit card transactions into a casino, sportsbook, or poker room are free
- Can use credit cards to fund alternative methods like e-wallets or Bitcoin
The Downside to Credit Cards
What Sites Accept Prepaid Cards
- Not always offered as payout alternatives
- The approval is up to the card issuer and not always tied to your available balance
- US players have a much smaller chance of being approved
- Banks can consider your transaction to be a cash advance and charge you a higher percentage rate
- Casinos, sportsbooks, and poker rooms may charge fees for credit card use and a higher rate for international transactions
- You can bet above your means and you're using money you have to pay back