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 and issues related to using Visa and MasterCard payment systems. I want to share some of these 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 severe: the first fine might be $25,000, the second $50,000, and so on. Recently, a known merchant was fined $50,000 by Visa and then another $400,000 for losing their MID. Additionally, merchants can add their own fines, compounding the problem. In such cases, merchants can freeze funds or withhold settlements without any investigation. This approach seems unjustified, as casinos pay high commissions, sometimes up to 12%. With such high fees, merchants should assume some risks and filter traffic more effectively.


2. Partners Refusing to Sign Contracts: Some partners have refused to sign contracts if they do not specify the penalties imposed on casino projects, leading to the termination of partnerships.


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


4. Partner Issues and Abuse: There have been instances where partners did not filter traffic on their end, leading to fines. For example, one partner once drove match traffic, resulting in a fine imposed by the merchant on us. 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 starting work with new partners or affiliates, it's crucial to thoroughly check their reputation and traffic quality. This can help avoid future problems.


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


- Building Strong Communication: It's essential to establish trusting relationships with payment system representatives by holding regular meetings and discussions to resolve contentious issues.


- Networking with Peers: Most Š”EO professionals in online projects are part of industry groups where they discuss challenges with specific merchants. Many of these groups have blacklists based on collective experiences.


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


#OnlineCasino #iGaming #Visa #MasterCard #PaymentSystems #AffiliateMarketing #BusinessChallenges #CasinoOperators #PaymentProcessing #IndustryInsights

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