NJ to Activate New Credit Card Code for Online GamblingPublished January 17, 2015 by Mike P
A new credit card will be launched in spring 2015 to increase the approval rate of credit card transactions with New Jersey online gambling sites.
Compared to Nevada and Delaware, New Jersey is generally regarded by industry professionals to have better regulatory framework. Of course, on-going changes are required to maintain the standard of such framework. And that is why a new credit card code has been assigned for processing all online gambling payments made in the state of New Jersey.
The new code was required after the US Office of the Comptroller of the Currency (OCC) and New Jersey’s Division of Gaming (DGE) and Department of Banking and Insurance recognised a need to correct a concerning rate of failed payments attempted by state residents at online gambling sites.
Widespread Declines of Credit Card Payments
Since state governor Chris Christie legalised online gambling in New Jersey in November 2013, many consumers have been forced to repeat their transactions because failures when they attempt to make payments. Major credit card operators have been flat-out declining payments instead of approving them.
Statistically, there were some interesting findings from the DGE. Most notably, an approval rate of 73% was reported for VISA payments, while the approval rate was just 44% for MasterCard. At present, VISA is clearly the more dependable method.
While many players will welcome the easing of this situation, they will actually have to wait until the spring of 2015 before the new credit card will become active. In the meantime, players would be wise to use VISA because of its superior approval rate.
US Bankers Not Quite Familiar
A spokesperson from the DGE explained that “further improvements are expected”, with a period of patience required “as the banking industry becomes more familiar with legalised internet gambling.” Of course, the DGE could have been more specific in highlighting the US banking industry. Comparatively, people in Europe are able to rely on either VISA or MasterCard as a primary payment option.