Online Casino Operators: Experiences and Challenges with Visa and MasterCard

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Working in the online gambling industry, I’ve encountered numerous challenges related to using Visa and MasterCard payment systems. I want to share some of my experiences to help other operators be better prepared for similar situations.


Key issues I’ve faced:


1. Delays and Penalties: There have been instances where payment systems delayed payouts and imposed excessive fines. The penalty scale can be quite harsh: the first fine might be $25,000, the second $50,000, and so on. Recently, a well-known merchant was fined $50,000 by Visa and another $400,000 for losing their MID. Additionally, merchants can impose their own fines, compounding the problem. In such cases, merchants may freeze funds or withhold settlements without any investigation. This approach seems unfair, as casinos pay high commissions, sometimes up to 12%. With such high fees, merchants should assume some risk and filter traffic more effectively.


2. Partners Refusing to Sign Contracts: Some partners refuse to sign contracts unless the penalties imposed on casino projects are specified, which can lead to partnership terminations.


3. Threats and Abusive Language: In certain situations, communication with payment system representatives has escalated to threats and insults. This is unacceptable and requires intervention from management and legal teams to resolve the conflicts.


4. Partner Issues and Abuse: There have been instances where partners failed to filter traffic on their end, resulting in fines. For example, one partner once drove match traffic, leading to fines imposed on us by the merchant. Some merchants have even turned fines into a business model to "pocket" money from casino operators.


Recommendations Based on My Experience:


- Thorough Vetting of Partners: Before working with new partners or affiliates, it’s crucial to carefully check their reputation and traffic quality to avoid future issues.


- Regular Traffic Monitoring: Constantly monitoring and analyzing traffic can help identify problems early and prevent potential fines.


- Building Strong Communication: Establishing trusting relationships with payment system representatives through regular meetings and discussions can help resolve contentious issues.


- Networking with Peers: Most CEOs in online gambling projects are part of industry groups where they discuss problems with specific merchants. Many of these groups have blacklists based on collective experiences.


Working in online gambling is full of challenges, but with the right approach to problem-solving and effective communication, you can minimize risks and maintain successful partnerships.

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