A comparative study of online casino payment methods and how they're best utilized

How casino payment solutions work

Most casino payment platforms are designed to be easy and seamless. However, it can be challenging to decide which payment options to choose from. Below, we’ll discuss some crucial things you need to know about how the various payment options work.

Most online casinos offer a wide range of payment methods in a bid to meet your preferences and make the entire process easier. We will discuss the different types further in this article, but whether you’ll use your debit or credit cards, or any other alternative casino payment solution, depends on your preferences.

In addition to choosing your preferred method of payment, it’s also important to know the steps on how to deposit money:

• Firstly, register and sign in to your account.
• Click on the transaction page to deposit your money.
• Select your preferred deposit method and the amount you want to deposit.
• Complete the follow-up process (this varies according to the payment platform).

Another important thing to note is the limits that casinos place on deposits. For example, some gambling sites have a minimum deposit of $10 – this is to ensure you have enough funds to participate. The limits mostly depend on the platform you’re using as well as your preferred payment methods. The same can apply to withdrawals.

In some cases, online casino operators will charge extra fees for using alternative payment methods. Knowing about other payment methods can help streamline which is best for you. Research has also indicated that simple payout procedures hold significant importance when it comes to the payment experience. It is important to have smooth deposits as well as quick withdrawals¹.

Top 5 online casino payment methods

Credit and debit cards

Almost all gambling platforms accept credit and debit cards, mostly due to their popularity and dominance among online payment options. Besides, they’re easy to access and convenient to use worldwide. However, some customers have reservations about sharing their credit card information with online casinos.

Financial institutions continue adopting technologies such as machine learning and artificial intelligence to combat fraud². Yet, the fact is that the security of their data can be compromised in the same way as when buying things online. But there isn’t any reason to make a fuss about it, especially if you’re dealing with a trustworthy and regulated online casino.

Here are some of the popular card brands that gambling sites accept:

• Visa: This is currently the most popular card. It offers a variety of options, namely Visa Debit and Visa Electron. It can be used for depositing and withdrawing funds (however, you must use the same brand for both operations). The fact that transactions are free on most online casinos explains why Visa is largely used by customers across Europe, North America and Japan.
• Mastercard: The number of users is almost similar to Visa, though fewer online casinos accept it. It’s also known for its overlong (up to seven business days) withdrawal procedure.
• Maestro: It is the brainchild of Mastercard, functioning as a debit card, so it can only be used when your account balance is above zero. However, it is available on a limited number of gaming platforms, especially when cashing out is concerned.
• American Express: This is one of the largest credit card issuers in the world. It has been noted that American Express cards are specifically excluded from certain features, such as the “Pay Over Time” option, when utilized for gambling-related purchases³.

2. Cryptocurrencies

Crypto casinos operate similarly to conventional online casinos; however, they utilize cryptocurrencies such as Bitcoin, Ethereum, and other coins as their primary mode of payment⁴. Gaming sites are warming up to extending digital currency payment options, given their swift withdrawals, high level of privacy, and minimal transaction fees. Here are some of the crypto options for consumers:

• Bitcoin: This “bread-and-butter cryptocurrency” is especially favored by American players because if they pay with it, such operations aren’t regarded as online gambling under current state laws. Moreover, gambling sites won’t charge additional fees unless you decide to convert it into fiat currency.

Some platforms are still considering Bitcoin as a method of payment. This is because Bitcoin and other cryptocurrencies operate in an unregulated environment, making it more challenging for authorities to trace and monitor their transactions compared to conventional financial transactions⁵.

• Litecoin: This currency is quickly becoming a serious competitor to Bitcoin since it is relatively faster in transactions and cheaper to buy. These advantages could make it one of the leading cryptocurrencies in the future.
• Ethereum: This is probably the fastest considering its transaction speed (mere seconds), which gives it an edge over Litecoin and even Bitcoin.

3. E-wallets

These are becoming very popular in the sphere of modern banking services, being that they are effectively a link between gamblers’ bank accounts and gambling sites. Users of e-wallets at online casinos enjoy prompt and foolproof transactions without disclosing financial details to the casino. However, the main shortcoming of using e-wallets is the transaction fees they charge. Notwithstanding, they’re typically minimal and are indirectly mitigated by loyalty programs handled by the majority of e-wallets. Here are the most popular e-wallets:

• PayPal: This is a popular e-wallet with over 200 million active accounts globally. However, online casino PayPal payments are not accepted by all gambling sites because they follow stringent policies regarding iGaming transactions, operating strictly on regulated markets only. The online casinos that work with PayPal do not charge transaction fees – although they may be charged by the e-wallet platform itself, the amount usually depends on the country it operates in.
• Neteller: This was once a pathfinder among gambling-related e-wallets. Responsible for processing four-fifths of all online casino payments in 2005, it has somewhat lost its dominance in this niche due to the growth of competition. Yet, it’s still recognized by most online casinos as having a reputation for a secure and stable payment process. The major downside of this wallet is the cashing out fee, which may be equivalent to 2.5%, depending on the withdrawal method you choose.
• Skrill: Although it’s a relatively new e-wallet, it is now accepted in over 200 countries and almost all gambling sites. To make payments with Skrill, you must create an account, deposit some money, and pay a fee (less than what Neteller charges).
• ecoPayz: This e-wallet has become number one in countries like Canada. It allows more than 40 currencies for online casino deposits. However, its potential downside is the rather high fee charges, often going up to 10%!
• MuchBetter: Being designed for usage via mobile devices (both iOS and Android-powered), it has been around since 2017. Its major competitive edge is its fee-free nature in situations where users fund it from their bank account. However, a small withdrawal fee is still charged – usually 2%, on average.

4. Pre-paid cards and vouchers

This is an alternative online casino payment method for gamblers without a credit card or an e-wallet. With a prepaid credit card, bettors can start their transactions with the gaming platform since this card already has a certain amount for them to use at their discretion. Here are the options available to customers:

• Paysafecard: Paysafecard is a pre-paid voucher payment method that enables online payments with cash⁶. It comes with a unique 16-digit PIN code and a small fee with rapid transactions, ranking the card highly among its competitors, especially in Europe. Unfortunately, it is not available in the US, but American gamblers interested in using it can get Paysafecard elsewhere and fund it electronically.
• EcoCard: This is a product of ecoPayz and a Mastercard-powered pre-paid voucher that is free to acquire. In addition, it requires no credit check to use and operates similarly to Paysafecard.

5. Bank wire transfers

Although this method is relatively slow, it is the most secure payment option. In some cases, it will take stakeholders up to a week to undergo an identity check before the completion of a transaction. This measure is instituted by banks to ensure that online wire transfer deposits and withdrawals are performed by the owner of the account, who must verify the transaction. It’s typically effected via an SMS code that the payer receives and then sends to the bank for confirmation of ownership.

In addition to being rather slow, this payment method is also quite expensive since online casinos usually charge a fee at the point of withdrawal. Besides, some players can be reluctant to share their financial information with gambling sites, all of which make this payment option the most rarely used among the above-mentioned types.

It’s important to use only secure and best online casino payment methods 

Offering the best payment options is important for online casinos to improve player retention and satisfaction. A payment mechanism that is used carelessly may result in fraudulent payments and reduced customers’ trust in a gambling website. The majority of US-based iGaming platforms offer a variety of payment methods to prevent such situations.

1. The Role of Casino Payment Options Revealed, Written by Alex Hussain and Ryan Spencer, Published by newcasinos.com
2. The Evolution Of Payments In The U.S. And Europe, Written by Sattvik Kansal, published by forbes.com
3. Can I Use My Credit Card for Online Gambling? Written by Gregory Karp, Published by nerdwallet.com
4. Best Online Casinos 2024, Written by Leo Wilson, Published by freespins.com.co
5. Why Governments Are Wary of Bitcoin, Written by James McWhinney, Published by investopedia.com
6. What is Paysafecard and how does it work? Written by Paysafecard, Published by paysafecard.com