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  3. Mastercard and Visa Releases Several New Credit Card Codes

Mastercard and Visa Releases Several New Credit Card Codes

In order to help banks with the authentication process and identify the licensed state-run online gambling transactions Part MasterCard and Visareleased several new credit card codes.

how-many-credit-cards-should-you-have1

From the original 7995 coding, the three new codes took away the legal activities being used for all online gambling transactions. They are:

1. state-run online lotteries (7800),
2. state-run online casino games (7801),
3. and state-run online dog/horse racing (7802).

The industry is optimistic that the new codes will clearlydifferentiate the legal online gambling transactions from the illegal ones, whilst in the process will also set the minds of some financial institutions at comfort concerning processing these transactions.

codes for gambling

Even with the new codes, it is important to mention that the final decision on what kind of transactions they will process lies with the issuing bank. Regardless of the legality, the banks and financial institutions have no need to take any type of gambling transaction. Some of the biggest names that refuse to process gambling transactions so far are PayPal, American Express, Bank of America, TD Bank, and Wells Fargo .

As a result of this change , different online gambling providers have experienced different results.According tothe head of online poker for Caesars Interactive,WSOP.com, Bill Rini, there is a minor improvement.Rini said that under the new MCC codes, many of the smaller banks are now processing online gaming transactions but thelarger banksthat have prohibited iGaming transactionsare not following suit.

The vast majority of banking in the U.S. is through larger banks, [so] not much is going to change until their policies on gaming transactions change, Rini explained.

The new MCC codes are a case of good news/bad news for the PartyPoker, according to Jeffrey Hass, the bwin.party Group Director of Poker.

In the first few days after the new codes went live, we saw an immediatedecline in MasterCard transaction success ratesof about 5%, Haas stated. Haas further stated that the company has seen more than a double volume of Visa transactions during that time frame, yet he pointed out that Visa success rates while follow TD Banks decision to stop processing online gaming transactions had declined to 11-15%.

Haas thinks that the current fall in MasterCard volume is due to the Santander prohibition on online gaming transactions; Santander was processing online gaming transactions, before the new MCC codes went into effect.

VIsa and mastercard banking

While continuing Haas also said that a continuous improvement has been seen over the past 50 days and MasterCard volume has now fell just 4% as compared to the period before the new codes were constituted. Besides that success rates are also surging Two weeks ago we had an average success rate of 77.5% [MasterCard], and last week that improved to 79.3%, Haas said, further mentioning thatMasterCard success rates hit 84% on June 11.

Find the latest card acceptance guidelines for VISA merchants

Visa success is going up at a faster pace according to Haas. The decline in MasterCard has been more than offset with the substantial improvements we have seen in Visa transaction success rates, Haas noted. The success rate in June has been 61.1% MTD, with last week hitting above 62% for the first time.

Since the new codes went into effect, more Positive and upbeat results have been seen by Pala Interactive, according toChief Operating Officer Mike OMalley:

Since making the change to the new codes, the number of transactions gettingapproved for MasterCard have doubledas well as a substantial increase in the number of players getting approved. Since making the change for Visa, we have seen increase in both approved transactions and players.

Just like the PartPoker, Pala also seems to have notice the same advancement in Visa volume and success rates, an increase in MasterCard usage and success rates is also being seeing.

The result to iGamings payment processing issues will be initially slow and will require a steady time period. The new MCC codes were never suppose to resolve this issue overnight.The good news is the continuous and steady progress that is being observed since iGaming launch in New Jersey in November of 2013. During that time the Visa success rates were merely breaking double digits.

MCC Codes (or merchant category codes) are assigned to merchant accounts during the set up process and are used to differentiate between types of business & industries. Each industry has different transaction patterns and differing levels of risk (potential for fraud). MCC codes are used by issuing bank to determine if they will except the transaction.There are approximately 500 different MCC Codes used by Visa and it is important for a merchant to make sure they are assigned to the appropriate code.

 

 

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        Updated: Nov 23, 2017 by Diana Sterling » TAGS: usa players