New codes for online gambling market and credit card payments
July 13, 2015
The online gambling market is still struggling in the United States facing new complications every day. MasterCard and Visa has put out there three new credit card codes that will help financial institutions to identify electronic transactions. Credit card payments from online gambling transactions will be now monitored, included in three new categories: state-run online lotteries (7800), state-run online casino games (7801), and state-run online dog/horse racing (7802). The online gambling market wants banks to have the last word on this matter though. PayPal, American Express, Bank of America, TD Bank, and Wells Fargo are already declining online gambling transactions.
Party Poker has not seen the new credit card codes as an improvement for the online gambling market. Bwin Party Group Director, Jeffrey Haas, has made several comments about it: “In the first few days after the new codes went live, we saw an immediate decline in MasterCard transaction success rates of about 5%. Two weeks ago we had an average success rate of 77.5% [MasterCard], and last week that improved to 79.3%. The decline in MasterCard has been more than offset with the substantial improvements we have seen in Visa transaction success rates. The success rate in June has been 61.1% MTD, with last week hitting above 62% for the first time.”
On the other hand, Pala Interactive has a different point of view about the new codes. Chief Operating Officer Mike O’Malley has said: “Since making the change to the new codes, the number of transactions getting approved for MasterCard have doubled as well as a substantial increase in the number of players getting approved. Since making the change for Visa, we have seen increase in both approved transactions and players. As time goes on, we expect to see the numbers continue to climb, both because players are retrying and becoming more aware, as well as more banks are approving the codes (some didn’t switch their code over when the change was made). Also, operators will continue to push MasterCard and Visa as they get more comfortable with the approval rates, and move off of high recommendations for other forms of payment.”