Online betting is not possible without online payment methods. Many bettors may not realize it, but the ways you can use have the power to influence your betting a lot. This Riproar feature will examine the factors you must consider when choosing an online betting site.
Among other things, the withdrawal time set by the operator also plays an important role. But, again, we’ll dive into the details now.
Riproar: Why Do You Need Online Payment Methods?
From a shopping perspective, we’ve left behind the days of cash use quite a while ago. Although most physical merchants still accept cash, customers are more inclined to use their credit cards or Bitcoin sports betting sites.
Not every country has a high penetration of credit cards. In Particular, cash is still king in poverty-ridden countries or underdeveloped countries, according to the global index. However, geolocation plays a significant role in this paradigm.
Let’s get back to the point. We’re dealing with online sportsbooks in this post. The legality of online gambling has everything to do with it. Not every government is pro-gambling. Even for the ones that are, you can’t use cash deposits and withdrawals at betting sites.
Each betting site must obtain a license from the state government if it wants to accept players from that state. The licensing structure is different in the country compared to the rest of the world, except for Canada. The US is an excellent example of a jurisdiction that takes cash, mostly.
Not only that, but the license must pass through a physical gambling establishment in the state. You can physically enter the license partner and deposit cash for your online account.
In the rest of the world, your only option is online payments. You get to use the available online payment methods approved by the government.
Online Payment Methods You Can Use for Online Sports Betting
During the initial days of the iGaming industry, payment methods were few. While major international networks like Visa, MasterCard, and PayPal were already inbound, they were not keen to invest resources in gambling.
Thankfully, those days are long gone. Almost all major online payment providers across thousands of betting sites are available worldwide. This section will review them by type and how they work for gambling.
If “common” and “popular” are two concepts to go by, no online payment method can beat credit and debit cards. And when it comes to cards, two names are found across the globe.
Both companies came into operation in the mid-20th century and quickly became names of trust among users. Today, almost every online shopping site and physical merchant accepts both Visa and MasterCard for POS transactions.
Both Visa and Mastercard are available for deposits and withdrawals. In the UK, however, you can no longer use a credit card for gambling transactions. A notice by the FCA in April 2020 disclosed the ban on credit card usage for gambling. The same can be said for online gambling sites all over the world.
Deposits are instant with these cards. However, when it comes to withdrawals, things get a bit tricky. For the most part, cards are not suitable for withdrawals. Very few online betting sites will allow cashouts via cards. Even then, you can only expect to find a Visa.
Another drawback of using cards for withdrawal is the waiting period. As this is a banking channel, the transaction must go through the issuer’s bank before reaching your bank account. It can take up to 5 working days. And even longer if you request a withdrawal during weekends.
E-wallets are the most balanced and effective online payment method in the iGaming industry. Although people are less likely to use E-wallets for shopping, they’re a must for bettors. Many of the industry leaders have now started their journey with the sole purpose of processing gambling payments.
The biggest name in this regard is Neteller. In 1999, a team of visionaries developed Neteller out of Canada. By the early 2000s, it handled over 85% of the world’s gambling transactions!
Then, we have Skrill. It initially started as Moneybookers and catered to European countries. Soon, the company was rebranded as Skrill and started operations across the globe. In many countries across Europe, it’s still known as Moneybookers.
Interestingly, Neteller and Skrill are owned by the same company, Paysafe Group. As a result of the merge, the feature list of Skrill and Neteller are very similar. The same goes for each method’s fees on your deposits and withdrawals.
Of course, how can we forget PayPal when talking about E-wallets? PayPal perhaps introduced the world to the idea of seamless fund transfers across the globe. It’s “seamless” because you don’t need an email address or phone number.
PayPal at betting sites, is a little hard to find compared to Skrill or Neteller. But if you look hard enough, you’ll find more than enough brands that accept this method.
Prepaid methods are often considered one of the best payment options for online gambling, especially if you’re not looking forward to withdrawing the money soon. You don’t need a bank account or any other documents to use a prepaid method.
Paysafecard is perhaps the most popular prepaid card you can buy for online sports betting. Among many methods, Bet365 also accepts it. These vouchers look very similar to your credit cards, with a complete 16-digit card number.
Another modern method from the same category is Neosurf. Unlike Paysafecard, you get a 10-digit code to redeem the value of the voucher.
Bank Transfer Methods
Occasionally, you can expect to use direct bank transfer methods at online betting sites. But in our opinion, it’s best to avoid these as you risk the payment declining, especially when sending the funds directly through your bank’s app. For 3rd party processors like Trustly, you’re on the safer side.
Fees You May Have to Pay
The good thing about the iGaming industry is that most operators don’t impose fees on the players. Your deposits and withdrawals will go smoothly without paying anything extra.
However, it doesn’t mean using online payment methods is entirely free. Check out the potential areas of fees below.
- Credit and debit cards are annual fees you pay to the issuer bank.
- E-wallets impose fees on a “per transaction” basis. But it’s only considered a transaction when you find the E-wallet and move money out of it. The deposits and withdrawals at online betting sites are still free.
- Prepaid vouchers are primarily free, except that you pay a little extra when buying them.