New Credit Card Codes Help with Online Gambling Transactions in the US

Credit Cards USAWhen new credit card codes were launched by Visa and MasterCard in the US, online poker and casino operators hoped the codes would assist with financial transaction issues. Many online gaming sites had issue with players being able to deposit and withdraw funds as financial institutions did not want to become involved with the iGaming industry. The new coding was created to help the banks in the US differentiate between legal online gambling sites, licensed state run facilities and illegal online gambling.

Three new codes were created to help create a distinction between each option from the original code, 7995 used for all online gambling transactions. The new codes include:

  • 7800 for State Run Online Lotteries
  • 7801 for State Run Online Casino Games
  • 7802 for State Run Online Dog/Horse Racing

The online gaming industry of the US wanted to see the new codes used to help players be able to place money into their online gaming accounts with ease. Too many financial institutions were not processing transactions due to being ill at ease with the industry. However, even with the new codes, financial institutions and banks can still choose to process or not process such transactions. Such companies who continue to refuse transactions include:

  • PayPal
  • Bank of America
  • American Express
  • Wells Fargo
  • TD Bank

So, the codes are in place and have not seen huge improvement with financial transactions, but are seen as a benefit to online poker players. The Head of Online Poker for Caesars Interactive, Bill Rini, was quoted as stating that the WSOP site has experienced a minor improvement in financials since smaller banks are choosing to process the online gaming transactions with the new MCC codes. Larger banks however have not followed the same pattern. They are still continuing to not process transactions.

Unless the larger banks get involved, there will be no major change in financials. Major banks play an important role in financial transactions of millions of individuals in the US and without their assistance, financial transactions will continue to be a problem in the US.

At PartyPoker in the US, serving New Jersey, the company has reported a mixed effect of the new codes. During the first few days of the new codes, the site saw a decline in MasterCard transaction success rates. It was only a small 5% decrease, but still a decrease none the less. However, Visa transactions increased, more than double, to provide better service for customers. But, once TD Bank decided to stop processing online gaming transactions, the Visa success rate did decrease by as much as 15%.

Improvement in financial transactions has continued at Party Poker with MasterCard slowly coming back to the positive. Visa has been more positive and the group hopes to see transaction rates only improve as the weeks and months progress.

Other operators have reported both positive and negative aspects from the new financial transaction codes. It is interesting to note that each site has a different experience. This could be due to the fact that each site offers a different sign up method. The different process may not be clear on the financial options open to players in different areas, which can lead players to use different financial companies to deposit and withdraw on the given site.

Over time, the operators in the US hope to eliminate any issue with the transaction process for online gaming. It will take time and may essentially require a full federal approval for gaming before financials can be consistent and of the highest quality for everyone taking part.