There is fear associated with online gambling with credit cards, and you might be surprised at who is feeling trepidation. It is not the players or casinos. The credit card companies are becoming very hesitant to allow people to fund their gambling through credit cards and in many instances, it is now illegal to do so.
Surprising Outcomes Of Online Gambling
Lawsuits have led to interesting and surprising outcomes – the people who have made the enormous debts have their names cleared, lawyer’s bills paid and credit records untouched. Many of these outcomes occurred when people have deliberately spent money on their credit cards without considering the possibility that their debt will be greater than what they can afford to repay and this has led to major financial difficulties for them as well as poor relationships with credit suppliers.
Credit Card Companies Fight Back
Terms and conditions that one has to agree to before receiving a credit card from certain banks and credit providers now often state that the cardholder must agree to higher interest rates incurred for that particular transaction. This is both to deter people from gambling and to reduce the amount of money spent on credit cards related to gambling activities. Money transferred from a credit card to an online gambling site is often treated as a cash advance rather than a credit card purchase – thus incurring much higher fees and rates of interest.
How to Avoid Financial Difficulty
Gambling, for some people and personalities, is extremely addictive. Online gambling with credit cards is no different from walking into a casino with a loaded wallet and your credit card in your pocket. You will find many instances where advice is offered regarding gambling and recommendations made suggesting that you leave your credit card at home. Obviously, about online gambling, you are probably at home already. Have someone else look after your card when you play so that you are not tempted to add more and more money to the account when you lose – or you could find yourself in major financial difficulty in the course of a few hours.
Know the Law
In many states, it is only legal to gamble in predetermined and allocated premises. This means that by online gambling with credit cards you could be involving yourself in illegal activities, the implication being that you are not in one of these premises and therefore breaking the law. Online gambling is already illegal in the United States and this has led to interesting convictions in courts. Instead of the gambler being prosecuted for gambling online, the credit card company is punished for allowing the activity to take place at all.
Payments from a credit card to PayPal have also been disallowed as PayPal is no longer an acceptable means of payment for online gambling and has been removed from the majority of online gambling sites already.
Different types of credit companies treat online gambling with credit cards differently as well. For example, American Express offers a credit service that they manage entirely on their own and separate to other banking entities and institutions. MasterCard and Visa, on the other hand, can be associated with many different bank and credit institutions and are in the possession of an estimated five hundred million people worldwide.