iGaming Blog

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 par...

Operating an online casino comes with its share of challenges, including potential fines from payment systems like Visa and MasterCard. Here are some practical steps online casinos can take to address and mitigate these fines: 1. Immediate Assessment:   - Review the Fine: Carefully examine the details of the fine, including the reasons provided and any evidence.   - Gather Data: Collect all necessary documentation and information related to the transactions that led to the fine. 2. Internal Investigation:   - Check Compliance: Ensure your procedures comply with the requirements of the payment systems.   - Identify the Issue: Determine the root cause of the fine, whether it is traffic quality, partner issues, or technical glitches. 3. Communicate with the Payment System:   - Contact a Representative: Reach out to a representative of the payment system to clarify and discuss the reasons for the fine.   - Provide Evidence: Present...

  Case Study: Issues with Unverified Acquirers Recently, we encountered a significant issue with one of our acquirers. Our partner informed us that the delay in payments was due to a "greeting from Visa" (compliance fine). However, there are no official confirmations, and the issue has remained unresolved for over a year. The acquirer has not responded and has been acting rudely, claiming that a legal process is underway. We have engaged lawyers and regulatory authorities to address this problem. Interestingly, the acquirer continues to operate normally, and their business appears unaffected 🥲. This situation can be explained by the fact that our acquirer is registered as an MSB (Money Services Business) and operates as a third-party processor. This means they cannot directly receive information from Visa and can only provide verbal comments. The sub-aggregation model complicates interactions and problem resolution. Many payment companies operate under similar models, where ...