Credit cards with special gambling code
24 April 2015
A change in the way credit cards are being categorized might help online casinos in the USA to increase their sales significantly. For now the State of New Jersey has launched a trial run with a newly developed dealer code that detects the separated legal and illegal gambling transactions so that banks have the opportunity to obtain the permission of the burden of online casinos. The Unlawful Internet Gambling Enforcement Act of 2006 has brought some significant limitations with regards to internet gambling, making it actually illegal in the United States. But recently special laws were created that allowed the online gambling in New Jersey, Nevada and Delaware legally. But according to the law online gambling transactions by banks and credit card companies are not approved because they are labelled with four simple number, namely with 7995.
Now, the US State of New Jersey, where Atlantic City is situated as well, has created a new code with the code 7801 to separate the legally permitted online gambling transactions from the illegal ones. The major credit card companies such as Discover, MasterCard, American Express and Visa have agreed on the new code for approved transactions. This is the category code that is given for all transactions that are made in online gambling. TJ Sharkey, a leader at the international payment provider Vantiv Gaming Solutions commented that with the new MCC, the identification of regulated transactions is far simpler, which gives the online providers the possibility to navigate within regulatory control. With the help of the new code banks could provide an incentive for the approval of certain credit card transactions because some credit card companies simply do not want to take the liability associated with online gambling. There are, therefore, additional efforts needed to ensure the financial institutions are on the bandwagon with internet casinos.