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New Credit Card Code Could Help U.S. Online Gambling

2015-05-01 00:00:00

New Credit Card Code Could Help U.S. Online Gambling

One of the problems for online gamblers in the United States when they play at Nevada, Delaware or New Jersey sites is that it can be tough to make deposits. Bank will sometimes deny credit cards because of the UIGEA. A new code could make it easier for banks and for players who want to deposit at legal U.S. sites.

New Merchant Category Codes are being introduced by VISA, MasterCard, American Express and Discover that will identify legal online gambling sites. There are reportedly going to be three new codes, 7800, 7801 and 7802. Those codes will identify state operated online lotteries, state operated casino games and state run horse racing and dog tracks.

Banks really don’t have any idea of what to do with many online gambling transactions so oftentimes they will simply reject them whether they are legal or not. Visa declines about a quarter of legal online gambling transactions for New Jersey while more than half of legal online gambling transactions at MasterCard are rejected from the state of New Jersey. The problem is code 7995 which is what the cards use to identify transactions that come from online casinos. It is simply a blanket code for all online gaming transactions no matter where they come from.

The new codes should make it easier for gamblers in New Jersey, Delaware and Nevada to get their card transactions approved, assuming banks actually pay attention to the new codes and change their current procedures.