- Online Casinos are adopting Bitcoin for deposit options
- Credit card processors are surprisingly expensive for gambling sites
- Despite bitcoin being volatile, it offers significant savings for these businesses
Online casinos and betting sites rely on money transfers – and often credit cards, for customers to be able to credit their accounts, however these transfers can be pretty expensive for the sites. A new report finds that some sites are attempting to lower their costs by accepting cryptocurrencies.
Credit card transfers can be expensive
A few online casinos adopted this wave of revolutionary thinking at its inception as a deposit option, but others were and have been slow to adapt. Bitcoin, where accepted, allows users to credit their accounts relatively quickly. But perhaps the best part is that the transaction costs pennies or less as compared to the high fees paid to credit card processors.
Credit card processors often charge an excessive rate of 3% for every transaction. In addition to this, the companies have to account for chargebacks which could be as high as 1% of the total transactions.
Another setback associated with credit cards is the waiting period of two weeks or more, and with each settlement, an additional charge of 10% is held back in-case of chargebacks. These charges can go up depending on the companies’ operations; the riskier the business, the higher the cost making it unattractive to volatile markets like gambling.
Gamblers Opting for Bitcoins Approach is a No Brainer
Bitcoin is preferred as the best mode of payment because it is fast and instant which lets the gamblers play almost immediately. Because it is equivalent to cash, there is no risk of chargebacks from disgruntled gamblers who may call their credit card companies and deny the charges. The losses incurred due to chargeback is every operator’s nightmare since there are no guarantees.
With the elimination of the hassles involved in dealing with chargebacks, savings are made on fraud detection and infrastructure cost allowing the owners to concentrate on customer acquisition. Regulations and restrictions placed on financial institutions over the past decade have made it hard to operate businesses across borders and other divides.
Volatility of Bitcoin Not a Limiting Factor
The question of volatility comes up when it comes to bitcoin, but every currency in the world is volatile to a certain degree. Those operators who find it convenient in keeping their treasury in Euros or Dollars the conversion to any cryptocurrency can be done instantly with simple plug-ins added to the backend. This essentially allows the players to deposit in crypto and engage in their favored currency and can withdraw at ease.
Earlier, it was the venture capitalists who positioned themselves to enter into crypto-world, and now it is no surprise that the gambling industries have as well realized the perks of bitcoin. This means cryptocurrency is gradually paving its own way into the mainstream.