How Does e-Commerce Work In An Online Casino and Sportsbook Operation?

Credit card processing is the first priority when running an internet gaming business. A customer will use his/her credit card to make a purchase for virtual chips ("v-chips"). He/she enters their credit card number, name and address and the information is then forwarded to a payment processor for verification. A payment processor is usually a third party financial company which will provide the internet gambling (the merchant) with a Secured Socket Layer (SSL) page to use on their web site for customers to enter credit card information. The Payment Processor also verifies the credit card for authenticity and credit approval. Once approved, the transaction is then sent to a clearing house (a bank which processes the transaction). Some payment processors also serve as clearing houses as well. The funds are then sent to the bank account of the merchant from the clearing house.

Payment Processors usually charge a set fee per month or a percentage of the transaction. Considerations include: software compatibility, discount rates and offshore bank accounts. Each company has different programs, and it is worth shopping around. Keep in mind a credit card company and/or bank charges about a 2.5% fee per transaction to companies that use online credit card orders. There are also chargeback fees and other issues around merchant accounts.

In early 2001, we reported that Visa/Mastercard was "cracking down" on online gaming credit card transactions by denying credit approval. The article can be read HERE. Denials of credit card transactions were taking place because the clearing houses were "coding" the merchants with an identification number that identified them as an internet gambling operation. The code is known as "7995" that specifically identifies known internet casinos. Once this number is seen by the clearing house computer system, the charge will be rejected altogether. Recommended reading on this is a statement by Mark MacCarthy (Sr. VP - Public Policy at VISA) on July 12, 2001 to the US House of Representatives (adobe .pdf format). On October 13, 2006, the UNLAWFUL INTERNET GAMBLING ENFORCEMENT ACT of 2006 basically requires US credit card institutions to employ this system. An important note here is that between the years 2001 and 2006 the industry tripled in size despite the "7995" (this is a very resilient industry).

On November 25, 2002, Paypal has permanently halted the online gaming transactions within its payment network.

While internet gaming revenues have been negatively affected by Paypal, Visa and Mastercard, alternative payment processing has emerged as a rapidly growing industry. Casino operators are keen to offer new payment options in order to survive. This article discusses more on the subject.

The list below is of companies believed to offer both traditional and alternative payment processing for an online gaming operation. Note that company policies change rapidly in the online payments industry:

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Casino e-commerce platforms

NameCountryRatingPlay
2CheckOut.com
2000Charge
21st Century Resources Inc.
Accelerate Ecommerce Site Host
ACH Direct
Advanced Commerce Technologies
Advanced Financial Logic
Advanced Infosystems
Advanced Solutions
Alysis Technologies
Anachron
Approval Payment Solutions Inc.
ATM Bankcard Services
Authorize.Net
Automated Electronic Transfers
Automated Financials Group
AutoPayment.Net
BankCard America Merchant Services
Beanstream.comCanada
BillCards
Billing Development Inc
Bizpurse.com
BPP Center
Business America Services
Business Cashflow Solutions Inc.
Business Online Specialists
Capital Recovery Solutions Inc
Cartio Micropayments
CashandSolutions.com
CC Bill
CC Now Online Retailer
CC Slide
ChargeGateway.com
Clear2Pay
Commerce NTI
Coulomb Ltd.
Crowne GoldDominican Republic
Credit Plus
CyberSource
DataBank
DataCash Ltd
Debit Cards International L.L.CUSA
Digital Courier Technologies Inc.
Direct DebitUK
Direct Deposit and Direct Payment Coalition
E Commerce Services UKUnited Kingdom
E4X
e-BullionUSA
eCash ServicesCanada
E-Commerce Exchange
E-complish
E-C-Q Payment Systems Inc.
EDR Payment Services
e-GoldUSA
Electracash
Escrow.comUSA
Electronic Payment Processing Inc.
Electronic Transfer Inc.
ePaymentSystems Inc.
Epoch Transaction Services
Eprocessing Network
eRevenue
Escrow Guardian
Eskrowz Inc.
EUDialer
Evergreenpayment.com
EWallet ExpressCanada
E-xact Transactions
EZCmoney
First Payment Gateway.com
The Global Billing AssociationUSA
Global Net Merchant
Go2Pay
Gold MoneyBahamas
GoPay Pty. Ltd
H.I.R. Investments
High Risk Merchant AccountsUSA
I Trust You
iAuthorizer
iCardAcceptance
IdentitrustUK
India Web Developers: Payment Systems
Indivos
Inovaware Corp.
Intellipay
Internet Clearing Corporation
Internet Media Solutions
InternetSecure
Iongate
iServe
iTransact.com Inc.
Jettis.com
JavienUSA
Layeway.com
MarqisaUnited Kingdom
Membership Control Service
MercanTradeSouth Africa
Merchant Accounts Pro
Merchant-accounts.ca
MerchantAnywhere.com
MerchantOnline
Microvault.com
Mid America Solutions
Money BookersUK
Multicards Internet Billing
Mysustento.com
NerexIreland
Net Pay 2K
NetellerUK
Netgiro
Oasis Technology
Ogone
Online Commerce Corp.
Online Data Corporation
Online Merchants Corporation
Online Ordering & Tracking System
Orbiscom
OS Gold
PartyKey.com
Pay by Web
Pay Per Net
PayBot
Paybutton
Payebill.com
PayingDialer.com
PaylinX Corporation
Payment Online Inc.
Payment Resources International
Payments in Hand
Place 2 PayUnited Kingdom
Place2pay
Planet Payment
Plug n Pay
POS24.com
PPV Soft Dialer
Professional Charges
ProNet
ProPay
PSiGate.
PSW Billing
QSI Payments
RemitNet Inc.
Rent to Pay
RevTrak.com
RichSolutions Inc.
Robynn Data Systems Inc.
Royal bank of ScotlandScotland
SafePay Payment Systems
SCiNet Corporation.
Secure Pay
Secure Trading
Secure Universal Network Billing
Shared Communications Network
Smart Transact
Solspark Inc.
Strategic Profits Inc.
Symbiant Worldpay
Technocheck Systems
The A-OK Network Inc.
The Global Merchant Account Group Inc.
Tieto Konts Financial System Ltd.
TradeCard
Trintech
TrustCommerce
TrustMarqueUnited Kingdom
Twenty-First Century Solutions
UpsPayment
USA LynxUnited States
UTM Systems
V Card ProLatvia
ValueLink
Vantage Card Services
VerifyOnline
Verza Inc.
Viamericas
Virtual ExchangeAntigua
Virtual Purchase Connection
Virtual Swipe
VirtuPass Corp.
Vital Processing Services
Wallet21
Web-Charge
WebMetering
WebMoney Transfer
Webpagers Internet Service
Wenchwear Easy Pay
Western Union
World PayUK
WorldPayOnline
Zoha Inc.

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