When the New Jersey online gambling industry went live in November 2013, there were plenty of hiccups. When sports betting goes live, you can expect similar speed bumps.
One of the biggest hurdles legal online gaming had to overcome was the alarming number of credit card transactions that were declined. Things have certainly improved, but even five years in, payment processing continues to be a thorn in the side of the industry.
After years of denying offshore gaming transactions, banks and credit card providers haven’t shown much of an interest in changing longstanding policies in order to give special exemptions for the trio of states that legalized certain forms of online gambling.
To shed some light on how online gaming payment processing has changed over the past five years, and what problems still exist that could impact legal sports betting, Online Poker Report reached out to Neil Erlick, the executive vice president of Business Development, Payment Processing at Paysafe.
The role Paysafe plays in online gaming
Paysafe is one of a select few payment companies that works with both consumers and merchants.
The company offers a wide variety of products and services, situs judi online from traditional payment processing solutions, to digital wallets NETELLER and Skrill, to the prepaid Paysafecard.
“With more than five years of experience in providing online payment solutions to regulated state and provincial lotteries in North America and over 15 years of providing secure payment processing to licensed iGaming operators in Europe, Paysafe is in a unique position to identify opportunities that goes beyond our standard payment processing capabilities,” Erlick told OPR.
“Our payment processing solutions encompass all of the tools and services that merchants require, providing reliable, engaging and pleasant customer experiences in a global environment, and are powered by market‐leading technology, extensive internal and external relationships, and outstanding service.”
Paysafe is also the parent company of the ome Access Group.
ome Access provides affiliate tracking solution to more than 200 individual gaming affiliate programs across North America and Europe. The company is the sole supplier of affiliate marketing software to regulated online casino and poker brands in the New Jersey and Nevada markets.
Getting everyone on the same page is vital
Since New Jersey’s slow start, payment processing has improved, but there is still a long way to go.
“We have seen a lot of difference being made with respect to credit card acceptance,” Erlick said.
Erlick highlighted the new Merchant Category codes MCC for legal online gaming that were installed in April 2015, and other improvements include:
Ongoing outreach to banks and credit cards
- Steering customers to accepted payment methods
- The addition of new payment processing options
- According to Erlick, offering a one-stop-shop of payment processing options is also helpful, as it streamlines the entire process.