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Questions You Should Ask Before Using Debit Cards in Gambling

Author: Catherine Lysenko
16 July 2021, 16:46
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Votes: 1

Debit cards are frequently used at online casinos as more and more people who have become accustomed to them consider them the most convenient payment method.

Questions You Should Ask Before Using Debit Cards in Gambling

According to financial news, in 2019, 20 722 million payment transactions were made via debit cards in Great Britain. France has second place with 10 121 million, Poland – the third with 5 242 million. 4 880 million payments were made with such cards in the Netherlands, and 4 714 million – in Poland.

The statistics prove the fact that debit cards are widely used by consumers in Europe. They make millions of payments for various products and services annually. If to consider payment methods of the most popular virtual casinos, debit cards are implemented there in the majority of cases. Let’s consider this payment option from both points of view – players’ and gambling website owners’.

What is a debit card?

A debit card is a plastic card, which allows its holder to pay by transferring money from his or her bank account to a seller’s settlement account. In addition to this, users can withdraw money at an ATM using a card. To make a long story short, very often, debit cards substitute cash completely as their owners don’t need to take fiat money with them.

As opposed to credit cards, money on debit cards belongs to its holder, not to a bank. When he or she withdraws money, there isn’t any necessity to return them. However, some cards are a mix of debit and credit cards and have the features peculiar to both of these types. Usually, credit cards include withdrawal commission, in contrast, debit card owners don’t pay such fees. However, they can have some fees, for example, for withdrawing cash via other bank’s ATM, foreign transactions, or a monthly fee. Debit cards often have a daily spending limit and offer a cashback.

Of course, the development of technology and digital solutions, as well as the popularity and high penetration rate of smartphones, also influenced the concept of a debit card. Nowadays, consumers can easily add a debit card (and not even one) to their Apple Pay or Google Pay and make purchases without having the plastic item with them. The majority of banking institutions issue debit cards for free when their clients open accounts.

debit cards

Speaking about the usage of debit cards in gambling, it is worth mentioning that the majority of online casinos have already implemented this payment method. It isn’t surprising taking into consideration the number of debit card owners across Europe. Gambling websites, which have such payments, are even more in demand than online casinos with PayPal.

At the same time, the usage of cashless payments mostly depends on the vertical and the country. For example, the latest research conducted by the UK Gambling Commission shows that the British consider payments with cash in brick-and-mortar casinos as the best way to protect themselves from excessive gambling. Here are the poll results:

Percentage of consumers who use cashless payment options

Gambling activities

Eighty-six percent

Wagering on events

Seventy-eight percent

Playing online slots

Thirty-six percent

Playing slot machines in land-based casinos

Fifty-one percent

Betting on sports in retail shops

Sixty-five percent

Playing in brick-and-mortar casinos

Fifty-eight

Playing bingo in land-based gambling establishments

As the research shows, cashless payments, including debit cards, are more used by those players who prefer iGaming. Gamblers who choose land-based casinos in Great Britain are more prone to using cash for this purpose, as 79% have answered that they can control their spending more effectively with this payment method.

The study also has other interesting statistics showing that 13 percent of players consider payments with a card as a threat to spend far more than usual. Thirty-seven percent are sure that this payment method will make them spend a little bit more than it has been intended. However, 41 percent of the poll participants have answered that even with the usage of a bank card they will spend the same sum of money as it has been planned.

Although gamblers who choose land-based casinos also choose cash, Visa debit and credit cards remain the most popular payment option at digital casinos. Mastercard cards are frequently used by players for replenishing the balance on gambling websites.

prepaid debit cards

How to obtain free debit cards?

As has been mentioned above, the majority of debit cards are issued by banks for free when you become their customer. Other banks even go further and offer fee-free cards, which allow users not to worry about additional payments or a commission. In addition to this, some financial institutions even issue virtual cards.

The procedure of getting a debit card is common in many banks. If a bank offers a free debit card, a customer can obtain it using three different ways:

  1. by visiting a bank;
  2. by calling customer support;
  3. by ordering a card online.

If a client chooses the two last options, a debit card will be mailed to him or her.

What are prepaid debit cards?

A prepaid debit card is a type of bank card, which allows users to purchase a certain sum of money. It can also be done for the sake of convenience as customers don’t need to take cash with them and can make payments and buy goods with a small piece of plastic. The card’s main advantage is that its holder doesn’t need to open a separate bank account. It makes the process of owing and spending money even easier. In addition to this, those people who want to get a prepaid debit card don’t need to have an appropriate credit history.

Prepaid cards are often used at online casinos along with other payment methods. In most cases, casinos accept such cards as they are widely used by players. It is worth remembering, however, that such cards can’t be used for withdrawals, and players only deposit with them. It doesn’t take much time to replenish the balance at a virtual casino: prepaid debit cards ensure instant crediting of funds to a gambler’s account. What is more important, these cards are anonymous, and Internet users don’t need to provide personal details on gambling websites. In addition to this, payment with prepaid debit cards at casinos allows players to control their spendings on gambling as they can’t spend the sum, which exceeds the card’s limit. It can protect users from addiction to gambling to some extent.

best debit cards

What are the best prepaid debit cards for gambling?

Let’s consider the most popular prepaid debit cards for gambling purposes.

  • Visa prepaid card;
  • Mastercard prepaid card;
  • American Express prepaid card;
  • Paysafecard;
  • prepaid card from Neteller;
  • prepaid card from Skrill;
  • Prepaid card from Neosurf.

The above-mentioned payment options will become a good solution for both operators and players. Casino owners should have a wide range of the most widely-used payment methods, while users should consider all pros and cons of prepaid cards and choose only those, which are the most appropriate for gambling.

What are the peculiarities of reloadable debit cards?

A reloadable debit card is the same as a prepaid debit card. Players who want to use it at digital casinos need to buy it, follow the activation instructions, and add money to it.

In the majority of cases, users can choose between several options for balance replenishment. For example, they can add funds to it by phone, do this online or in-person in the place where they have bought it, or transfer money directly from a bank account.

Reloadable debit cards have several peculiarities about which it is better to know in advance. For instance, usually, such cards have fees (only some of them are totally free). Fees can be charged for various services within a card: activation, balance replenishment, withdrawing money at an ATM, or monthly commission for the card usage. Very often, reloadable cards have set limits for the sum of money their holders can load on them.

What are custom debit cards?

A custom debit card is an opportunity for its owner to make it special in terms of design. To put it in a nutshell, it is a standard card, which can be customized by a user. He or she can add a certain image or even a photo to it.

A personalized debit card doesn’t have any financial peculiarities. The only thing it can offer its holder is a special design chosen by him or her. Besides, there is a set of rules for customization. This service’s fee is ten dollars on average, but this sum can differ depending on a financial institution.

free debit cards

Does an online casino need payments with the best debit cards?

The question of implementing debit cards payment on a casino website is quite controversial, although this payment option is extremely popular. It has several significant pros and cons, which are important to consider.

Let’s start with the advantages of having debit card payments at a virtual casino. As has been mentioned above, they are the most preferred methods for depositing because the majority of modern people have at least one bank card. Speaking about debit cards, it is worth mentioning that they are a favorite payment option in the UK where most of the players use only them on gambling websites. Visa cards lead the list as they are very widespread among gamblers. Mastercard has a second place, however, many casino customers also often own such cards.

It isn’t surprising that players replenish the balance at casinos via debit cards. Depositing is a kind of purchasing certain services or digital goods for them. For instance, to deposit on a website via a card is like paying for TV, buying a subscription to an online magazine, or purchasing a video game. That is why those people who gamble use their debit cards at virtual casinos without hesitation. This makes operators add this payment method.

At the same time, governments of many states as well as a number of banks protest against the usage of debit and credit cards for gambling purposes. Great Britain is one of them. On April 14, 2021, the opportunity to place bets via credit cards was banned. All UK online casinos lost the most frequently used payment method. Debit cards are still allowed for gambling, but the United Kingdom seems to be the jurisdiction where restrictions become only tighter. That is why the ban on debit card gambling is also a through scenario.

reloadable debit cards

Not so long ago, Australian banks also decided to fight against problem gambling. They have introduced a new feature, which allows customers to block gambling-related transactions on their debit and credit cards. They can do this via a mobile application. The block isn’t obligatory as players with the signs of gambling addiction can do this themselves, but it is definitely a wake-up call for Australian operators.

Sweden is also the country where banks have strained relations with gambling companies. Several major financial institutions, including SEB, Swedbank, and Danske Bank, refused to provide services to operators. Notwithstanding the fact that these gambling companies are licensed, banks have suspended all financial operations with them. The situation caused an outcry from the Swedish Trade Association for Online Gambling (BOS). Its representatives insist that this decision is contrary to Swedish legislation. The main reason for banks to stop their cooperation with gambling operators was their concerns about the risks connected the AML compliance.

Taking into consideration these cases, it is really difficult to make a prognosis about what relations financial institutions across Europe will have with gambling companies. Payments with debit cards issued by banks and popular providers can be at risk in many countries throughout the world.

Read more: How to invest in gambling stocks

Read more: List of countries that use euro

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Frequently asked questions

How do debit cards work?

Payments via debit cards withdraw money from your bank account.

What is true about debit cards?

Debit cards are connected with a customer’s checking account.

Why are credit cards more convenient than debit cards?

Credit cards have a better protection level and allow bank customers to get money when they need them.

How many debit cards should I have?

Having one debit card is more convenient, but there are no rules for the number of cards.

Where to buy debit cards?

Debit cards are issued in banks or can be requested online.

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